Press release: Assets in Irish domiciled funds reach all-time high of €2.64 trillion24 May 2019
Assets in Irish domiciled funds reach all-time high of €2.64 trillion – Irish Funds
- 17% growth in Irish domiciled ETFs in Q1 2019
- 29% increase in ManCo registrations from beginning of 2018
- Investment Limited Partnership (ILP) Bill scheduled to go before Cabinet on June 11th
- Record number attend Irish Funds Annual Conference
23 May 2019, Dublin, Ireland – At its 21st Annual Global Funds Conference today, Irish Funds, the representative body for the global cross-border investment funds industry in Ireland, reported an increase in assets in Irish domiciled funds of 9% over the last quarter, to an all-time high of €2.64 trillion according to the latest data from the Central Bank of Ireland (CBI).
Net sales for the quarter across all funds, stood at €32.3 billion – of which €25.7bn were into ETFs. This, along with positive market movement helped drive an increase in assets in Irish domiciled ETFs to €429.8bn, representing 17% growth in the first quarter.
Since 2017, ETFs have made huge strides as a tool for institutional investors as well as a providing retail investors access to asset classes which were previously beyond their reach. Ireland has emerged as a leading global centre for the product attracting over 50 per cent of all European-domiciled ETFs – and the largest outside the US.
The strong performance of Irish domiciled funds, combined with €2.0 trillion of non-domiciled funds administered in Ireland, puts the total value of assets under administration in Ireland at €4.7 trillion.
These figures underscore Ireland’s continuing attractiveness as a funds centre – with the Central Bank of Ireland completing its highest-ever number of fund authorisations — 1,117 — in 2018. This includes a growing presence of asset managers and management companies in Ireland, with a 29% increase in ManCo registrations from the beginning of 2018 to date and seven new entries so far in 2019.
This reflects ongoing Brexit contingency planning, but also a more general trend as global managers choose Ireland as their EU base and launchpad to provide solutions to a range of European and global clients.
The continuing and rapid evolution of the industry and its participants in Ireland is broadening the value chain of services provided and cements the Irish Funds Industry’s position as a key economic enabler – providing direct employment for over 16,000 people around Ireland and contributing €837 million in direct taxes to the Irish Exchequer according to a recent Indecon report.
Irish Funds also help people in 90 countries save and invest for the future and more than 40 global speakers, 25 exhibitors and 450+ attendees provided a record turn-out for the Industry’s annual flagship event.
In his keynote address to the conference, Michael D’Arcy TD, Minister of State for Financial Services and Insurance, outlined the new Government ‘Ireland for Finance’ strategy and thanked the industry for its input and support, commenting:
“Ongoing successful collaboration between public and private stakeholders is essential if we are to harness the talents and expertise of both sectors. I want Ireland to be at the fore-front of policy developments at EU-level, both from a Government and an industry perspective, to ensure that we can once again secure the ‘first-mover’ advantage which characterised our early successes.
Under the Strategy, I will be putting initiatives in place to ensure that the State and industry are fully equipped to successfully undertake this work. Ireland as a global location for private equity funds is of particular interest to many today. I am pleased to let you know that the draft Investment Limited Partnership (ILP) Bill was received recently and is intended to be published in the coming weeks. The ultimate aim of the amendments is to help ensure that Ireland remains one of the leading funds domiciles in Europe.”
Irish Funds Chief Executive, Pat Lardner added:
“By enabling global savings, supporting greater capital market integration in the EU and delivering tangible economic benefits to communities across Ireland, the funds industry plays a pivotal role in showcasing what this country has to offer, and we are very proud of that. Maintaining our competitiveness is equally important so it was very welcome to hear from the Minister today that the draft Investment Limited Partnership Bill is scheduled to go before Cabinet on June 11th, after which we hope to see it published. This will provide a further boost in Irish funds industry efforts to establish Ireland as a European domicile for funds which want to invest across infrastructure, renewables and private equity.”
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Notes to Editor
About Irish Funds
The Irish Funds Industry Association (Irish Funds) is the representative body for the international investment fund community in Ireland. Founded in 1991, Irish Funds represents fund managers, depositaries, administrators, transfer agents, professional advisory firms and other specialist firms involved in the international fund services industry in Ireland.
Irish Funds’ more than 140 members service or manage in excess of 13,500 funds with a net asset value of €4.7 trillion. Irish Funds objective is to support and complement the development of the international funds industry in Ireland, ensuring Ireland continues to be a location of choice for the domiciling and servicing of investment funds.
Over the last 25 years Ireland has become a premier jurisdiction for fund managers establishing regulated investment products for distribution in the global marketplace. In recent years Ireland has been the fastest growing large international fund administration centre.
Ireland is also a leading European domicile for money market funds and exchange traded funds, as well as the world’s premier jurisdiction for the stock exchange listing of investment funds. International investment managers are attracted to Ireland due to its open, transparent and regulated investment environment and its strong emphasis on investor protection.
As Brexit negotiations continue, Irish Funds are continuing to see managers from around the globe looking at domiciling their funds in Ireland. Today, Irish domiciled funds are sold to investors from 90+ countries across Europe, the Americas, Asia and the Pacific, the Middle East and Africa. Over 900 fund promoters from more than 50 countries have funds domiciled or serviced in Ireland. There are 38,000 people employed in the financial services industry and in excess of 16,000 directly in investment funds industry.
Over 500 fund promoters from across the globe have used Ireland to set up regulated investment funds distributed to shareholders throughout the world. Fund promoters can rely on expert service supported by 16,000 skilled employees across the entire service provider community, including fund administrators, trustees, legal advisers, auditors, tax advisers, compliance, listing and other industry specialists.
For further information about Irish Funds, please visit www.irishfunds.ie