Merrill Lynch is setting up a funds management operation in Dublin to target wealthy individuals as well as pension fund business. The company has poached equity specialist Richard Dunn from Oppenheim Investment Managers to manage portfolios and build personal relationships with Irish clients.

Merrill Lynch has offered a private client service in Dublin since 2001, but is seeking to win a greater share of the "ultra-high net-worth individual" market as demand grows in the sector.

Nick Tucker, executive director of Merrill Lynch's global private client group, defined the ultra-high net-worth individual as somebody having financial assets of more than €1 million.

Merrill already has a wealthy Irish private client base in the hundreds but has until now been managing their portfolios from London. Mr Dunn's appointment will allow funds to be managed in Dublin for individuals and pension funds.

Mr Tucker said wealthy Irish people tend to place more importance on personal relationships with bankers than their equivalents in other European countries.

"A lot of the wealth is relatively new," he said, adding that a large portion of Merrill's Irish clients are still "getting comfortable" with their financial positions. "Quite a heavy reliance on property has created its own special issues and needs," Mr Tucker said.

"They don't want to feel they're talking to salesmen," he added.

Mr Tucker said Irish clients also want to be "actively involved" with their portfolios.

The company's typical Irish client is, he said, in his or her early to late 40s and has gained wealth through property, business or, more recently, inheritance. He said the number of ultra-high net-worth people in the Republic has "expanded at a huge rate" over the past decade.

Merrill has also hired two financial advisers for its Dublin business: Maeve Corr is joining from Deloitte's private client division and Michael Durcan transfers from another part of Merrill's Dublin operations.

The company is one of a growing number of banks and brokers seeking to tap into the Republic's growing individual wealth sector. The main domestic financial houses are already established here, while Goldman Sachs is reportedly seeking to enter it.

Merrill Lynch has been in the Republic since 1995 and has more than 800 employees in two Dublin locations.