Irish Funds, the representative body for the global cross-border investment funds industry in Ireland, has announced that net sales across all fund types stood at a record EUR298 billion in 2017, according to the latest data released by the Central Bank of Ireland (CBI).
This new record level is the highest net sales ever of Irish domiciled funds, more than twice the amount of the previous record in 2016 and representing over 30 per cent of net sales of all European funds. These strong figures have continued into 2018, with EUR54 billion of net sales into Irish domiciled funds in the first quarter.
The record net sales contributed to an increase in assets in Irish domiciled funds to a new high of EUR2.4 trillion, representing growth of 16 per cent in 2017. Given the strong performance of Irish domiciled funds, coupled with EUR2.3 trillion of non-domiciled funds administered in Ireland, the total value of assets under administration in Ireland now stands at EUR4.7 trillion. These figures reflect the underlying growth in assets-under-management (AUM) for managers who have established funds in Ireland.
Today, Ireland is the domicile for 5 per cent of worldwide investment fund assets, making it second largest centre in Europe and is the as the fastest growing of the continent’s five largest fund domiciles over the last fove years.
This growth comes as the Irish Government continues to support the industry in delivering a responsive business and regulatory environment for the wider investment community. This work remains a key part of the government’s International Financial Services 2020 strategy.
Paschal Donohoe, TD, Minister for Finance & Public Expenditure and reform, who will address at the conference, says: “The funds industry has been a successful and significant element of the Irish financial services landscape for many years. This success has been underpinned by changes in the legislative landscape that have made Ireland an attractive domicile for promoters in Hong Kong and Asia, across Europe, the US and beyond. Alongside a regulatory regime providing a robust and consistent approach to the supervision that promotes confidence in Ireland as a location for investment funds.”
As further testimony of the Irish funds industry’ strength, the Irish Funds Exchange Traded Funds (ETF) Working Group published a paper in March 2018 outlining Ireland’s excellence in ETFs. While data from the European Fund and Asset Management Association (EFAMA) has confirmed that Irish domiciled funds accounted for 58 per cent of all European ETF assets, and more than 87 per cent of all ETF net sales in Europe in 2017, making the country the leading domicile for ETFs outside of the US.
Commenting on the new record, Pat Lardner (pictured), Chief Executive at the Irish Funds Industry Association, says: “Our Annual Global Conference has expanded significantly year on year in lock-step with the industry’s overall growth. This reflects the success of the funds industry in Ireland over the years and its significant contribution as a source of highly skilled employment right across the country. Today as we celebrate our 20th Annual Conference, we are delighted to welcome more than 450 delegates from 18 different countries. This is a clear signal that Ireland continues to be the destination of choice for asset managers distributing funds globally, but also a timely reminder that we must continue to create innovative solutions to global challenges – which is the theme of this year’s Conference. We look forward to continuing to work with Government, policy setters and our industry to build on this success and deliver those solutions.”
