Press release: funds and asset management industry a key contributor to economic growth
Wednesday, 19 May 2021
Investment fund and asset management industry is a key contributor to economic growth – Irish Funds
All key economic metrics show increased contributions
Total domiciled funds in Ireland now stand at €3.5 trillion
Increase in Q1 of 5% across all funds
Record number attendance at Irish Funds’ Annual Conference
19th May 2021, Dublin, Ireland – At its Global Funds Conference, Irish Funds, the voice of the funds and asset management industry, reported increases in direct employment (+7.9%), exchequer contribution (+9.2%) and general business activity across the sector. It also reported an increase in assets in Irish domiciled funds of 5% over the last quarter, bringing the total amount invested in Irish domiciled funds to an all-time high of €3.5 trillion according to the latest data from the Central Bank of Ireland (CBI).
To assess the ongoing performance and contribution of industry throughout the pandemic, Irish Funds commissioned Indecon International Economic Consultants to conduct a second Economic Impact Assessment of the industry at the end of 2020. The continuing evolution and growth of the industry has confirmed the sector as a key and consistent economic contributor – providing direct employment for over 17,273 people (34,357 including indirect employment) based in every country in Ireland and contributing €914 million in direct taxes to the Irish Exchequer.
The Economic Impact also reports €7.5 billion in direct economic impact (€12.1bn including indirect impact) was generated by the investment funds and asset management sector directly in the year 2020, an increase of 6% compared to 2018.
A key finding of the report is the continued regionalization and broadening national presence of the Irish investment funds and asset management industry over the last 2-3 years, with almost half of the counties in Ireland now having at least one industry office, and an expansion of almost 40% in the number of office locations outside of Dublin.
The increase in domestic economic contribution is linked to increased activity and business volumes. Net sales into Irish domiciled funds for Q1 2021 were €40.5bn. This comes on the back of €235 bn of net sales in 2020, more than any other fund location in Europe.
Irish Funds Chief Executive, Pat Lardner commented:
“By enabling global savings, supporting greater investment into and across the EU, and delivering tangible economic benefits to communities across Ireland, the funds and asset management industry plays a pivotal role in showcasing what Ireland has to offer.
Looking ahead, the Indecon study indicates that the fund and asset management sector in Ireland can grow by 25-30% over the next five years. To achieve this the entire ecosystem in Ireland must transform, innovate and challenge ourselves in delivering solutions, in order to maintain an environment and approach that remains world-class. By doing this we can continue to effectively contribute to the national economy, which is essential as we emerge from the pandemic and prioritise sustainable growth.”
Irish Funds Annual Conference 2021 titled, “Accelerated Transformation – disruption and opportunity,” takes place virtually on the 19th & 20th of May and includes renowned global speakers, such as An Taoiseach, Micheál Martin TD; Mairead McGuinness, European Commissioner for Financial Services ; Ron O’Hanley, Chairman and CEO, State Street Corporation; Shundrawn Thomas, President, Northern Trust Asset Management; John Herlihy, Former VP LinkedIn & Former VP Google; Derville Rowland, Director of Financial Conduct, Central Bank of Ireland; Mark Esposito PhD, Harvard University; Dr Tara Shine, Director of Change by Degrees; and Anu Madgavkar, Partner, McKinsey Global Institute.
The conference was attended by more than 650 participants from 25 different countries, as speakers and panel members discussed topics such as sustainable finance, the post pandemic recovery and the future of fund industry regulation.
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Notes to Editor
About Irish Funds
The Irish Funds Industry Association (Irish Funds) is the voice of the funds and asset management industry 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 150 members service or manage more than 14,000 funds with a net asset value of €5.7 trillion. Irish Funds is the voice of the funds & asset management industry in Ireland, ensuring Ireland is the premier location to enable and support global investing through its reputation for trust, capability and innovation.