Irish funds industry sales hit record levels of €207bn

‘Bumper year’ for Irish-domiciled cross-border investment funds, with more growth due

Ireland is already the third-largest global centre for investment fund assets. Photograph: Alan Betson

Ireland is already the third-largest global centre for investment fund assets. Photograph: Alan Betson

 

Net sales in the Irish funds industry have reached record levels in 2017, tipping €207 billion in the first eight months of the year.

Irish Funds, the representative body for the cross-border investment funds industry in Ireland, said 2016 net sales across all fund types stood at €139 billion, which was the previous record figure in the seven years since data became available.

This year’s figure of €207 billion has already surpassed that, but only accounts for the first eight months of the year. Further growth is expected, making 2017 a “bumper year” for fund managers who have chosen Ireland as a base for their cross-border funds.

In 2016, Irish authorised funds attracted more net sales than any other European country, accounting for about 30 per cent of the total, and this rate has continued in 2017.

Ireland is already the third-largest global centre for investment fund assets. Between 2011 and 2016, net assets held in Irish-domiciled funds doubled.

More asset managers are also joining the Irish Funds body. Some 50 of its 125 member companies are asset managers, making it the largest member group. Wider membership is made up of depositaries, fund administrators, transfer agents, professional advisory firms and specialist service providers.

Brexit negotiations

Irish Funds, which was established in 1991, said it was continuing to see managers from around the globe looking at domiciling their funds in Ireland as Brexit negotiations continue.

More than 880 fund managers have funds domiciled or administered in Ireland, and 17 of the top 20 global asset managers have Irish-domiciled funds.

About 40 per cent of global hedge fund assets are serviced in the country, while more than 50 per cent of all European exchange-traded funds (ETFs) are also established in Ireland.

“Ireland has firmly established itself as a leading destination for a wide range of fund strategies and structures, and these record figures are testament to that fact,” said Irish Funds chief executive Pat Lardner, speaking at the organisation’s fifth annual UK symposium in London on Friday.

“The Irish funds industry is currently responsible for €2.25 trillion in domiciled assets, with the amount of assets under administration over €4.3 trillion, and we expect that trend to continue.”