2025 Industry Insights

In this member thought leadership piece, Lloyd Collier of JTC Group examines the growing complexity of ESG in the funds and asset management sector amid Europe’s evolving security and defence landscape. Fund managers face the challenge of balancing regulatory requirements, ethical considerations, and transparency in this nuanced and complex area.

Globally, the investment industry is experiencing profound change – according to the hundreds of C-suite asset management executives and institutional investors surveyed in the latest Carne Change 2025 report. Perhaps the most profound change is the significant uptake in outsourcing. Managers are using third party specialists for three specific and material needs. Firstly, they must keep pace with evolving investor demand and increasing scrutiny; secondly to deliver growth strategies and new products; and thirdly to achieve cost savings. For smaller firms these are critical if they want to retain their independence.

With an estimated $750+ billion worth of U.S.-promoted private capital held in Europe’s key financial centres, U.S. fund managers are increasingly looking to Europe to launch additional fundraisings. Aztec Group explains how U.S. managers can navigate Europe’s complex regulatory landscape to structure and domicile funds here, allowing them to access more European investors as simply and as quickly as possible.

Explore the evolution and current landscape of Exchange-Traded Funds (ETFs), and the rise of actively managed ETFs. Initially introduced in North America in the early 1990s as passive, index-tracking vehicles, ETFs have evolved through several phases. By 2025, the ETF market has reached a new stage, offering complex portfolios with sophisticated instruments. Globally, there are 12,000 ETFs with $14 trillion in assets, and active ETFs, though less than 10% of assets under management (AUM), captured 20% of 2023 net flows. The U.S. leads in actively managed ETFs, but Europe and Asia are poised for growth, requiring asset managers to adapt to regional demands. Dive into how these developments are shaping the future of investing.

"The Rise of Agentic AI – Navigating the Next Wave of Artificial Intelligence" explores the transformative potential of Agentic AI, a new generation of autonomous AI systems capable of achieving goals without constant human guidance. Building on the rapid adoption and success of Generative AI technologies, this document delves into the advancements, applications, and governance of Agentic AI. It highlights how these systems can revolutionise business operations, enhance efficiency, and address complex challenges, while also emphasising the importance of robust risk management and human oversight to ensure responsible and effective deployment.

The European Commission has proposed that it will move securities markets to a T+1 settlement cycle in October 2027. While the shift will apply to equities and other listed instruments, its implications go much further. For the funds industry, this development marks a significant moment – a clear indication that the wider settlement infrastructure is changing.

The OECD's Pillar 2 initiative introduces a global minimum tax rate of 15%, aiming to prevent profit shifting to low or no-tax jurisdictions. This article explores the key considerations for fund vehicles in the context of Pillar 2, providing insights into when funds could be regarded as in scope of the rules.

Assets in European ETFs have continued to grow over the last two decades and now stand at over $2.1 trillion. They are forecasted to rise 15% annually until 2030, reaching $4.5 trillion in AUM by then. Ireland is the domicile of choice for European ETFs with more than 70% of European ETFs domiciled here. This article explains the most common routes available for managers looking to enter the European ETF space.

As talent acquisition remains a critical challenge in financial services, organisations are discovering the strategic advantage of apprenticeship programmes. In this article, we explore how two Irish Funds member organisations are leveraging the FIT (Fast Track into Technology) Tech Apprenticeship programmes in Cybersecurity, Software Development and Computer Networking to build teams that blend fresh perspectives with industry-specific training.

In an era defined by rapid technological evolution, artificial intelligence (AI) has emerged as a cornerstone of transformation across the investment industry. Amand Thind and Terri Dempsey from State Street discuss how beyond efficiency gains, AI has become a strategic enabler, offering asset managers the ability to optimize operations, enhance performance, and help deliver superior client outcomes.

Liam O'Mahony and Patrick Farrell (PwC) discuss the Savings and Investments Union (SIU) and its strategies to boost retail investor participation in Ireland. They address barriers such as financial literacy, technological adoption, and regulatory challenges, highlighting the potential benefits of increased investment in capital markets for both individual investors and the broader economy.

Claire Winrow and Michael Dyulgerov (Walkers) delve into the dynamic rise of private assets—spanning private equity, credit, infrastructure, and real estate—which have surged from US$9.7 trillion in 2012 to an estimated US$24.4 trillion by the end of 2023. This explosive growth reflects a global shift in investor appetite, driven by the pursuit of higher returns and the increasing accessibility of private markets through innovations like semi-liquid funds.

Since the introduction of the revised ELTIF 2.0 framework in early 2024, the European investment landscape has seen a notable shift. Keith Milne (Universal Investment Ireland) highlights that the growing number of ELTIF registrations — including 13 now domiciled in Ireland — signals the regulation’s effectiveness in broadening access to long-term investment opportunities for both retail and institutional investors. This momentum also reinforces Ireland’s rising stature as a key hub for fund domiciliation in Europe.

Kamel Torki and Eric Derobert (CACEIS) discuss how the EU and the UK have recently set deadlines for adopting a T+1 settlement cycle to align with other global financial markets. This shift promises to enhance market efficiency, reduce systemic risk, and bolster the EU's competitiveness on the global stage.

In this Q&A, Lloyd Collier reflects on the past year in Ireland, highlighting the country's unique combination of talent, supportive community, and innovative fund structures like the ICAV and ILP. He underscores Ireland’s growing appeal as a global financial hub, driven by its collaborative culture, strong regulatory framework, and promising future for industry growth and talent development.

Europe’s ETF market is undergoing a new wave of transformation. Ken Shaw (State Street) explains how the region is evolving, and what this means for the future of the industry in Ireland.

James Dunne (KPMG) highlights the importance of modernising fund reporting processes in the AM industry and showcases the innovative solutions available. By addressing the challenges and leveraging advanced technology, AM firms can achieve greater efficiency, accuracy, and transparency in their reporting practices.

Paul Griffith (IQ-EQ) discusses how Ireland is establishing itself as a leading European centre for private asset funds, supported by investor-ready fund structures, a stable regulatory environment, and a highly experienced and effective financial ecosystem. In Ireland, private asset managers have a compelling alternative for achieving growth in the EU.

As the European ETF market turns 25 this year, Patrick O’Brien (Carne), uncovers the drivers behind the ETF growth story in Europe and how passive went massive.

Karine Litou (BNP Paribas) delves into private markets which have been one of the asset management industry’s big success stories over the past two decades. And while the ultra-low interest rate environment that fuelled much of the growth may be over, the incentives for generalist asset managers to diversify into or expand their presence in private markets are only getting stronger.

Explore the evolution and current landscape of Exchange-Traded Funds (ETFs), and the rise of actively managed ETFs. Initially introduced in North America in the early 1990s as passive, index-tracking vehicles, ETFs have evolved through several phases. By 2025, the ETF market has reached a new stage, offering complex portfolios with sophisticated instruments.

On 11 October 2027, the financial markets of the European Union (EU), United Kingdom (UK), and Switzerland and Liechtenstein, will, or are considering moving to a T+1 settlement cycle, bringing them into line with other financial centres that have already commenced or completed the move. Matthew Cherrill, Amanda Hale and Marcello Topa (Citi) considers each of these proposals in more detail in terms of background leading up to the proposals, suggested approaches, along with actions still to be taken.