Irish funds industry to be worth €5.3 trillion by 2025

The value of the Irish asset and wealth management industry is set to reach €5.3 trillion by 2025, and it has the potential to create 6,000 new jobs over the next five years.

This is according to a new study by PwC, Asset and Wealth Management Revolution: The Power to Shape the Future, which finds that the Irish funds industry will grow by up to 10.8 per cent a year to 2025. This rate of expansion will outpace global growth, of about 5.6 per cent year, with the global industry expected to reach $147.4 trillion (€121.2 trillion)by 2025.

Trish Johnston, PwC Ireland leader for asset and wealth management, said that the figures confirm the "significant opportunities" for Ireland's asset management industry.

“With the correct focus, the increased job potential for Ireland in asset management and related financial technology and payments sectors, is in excess of 6,000 over the next five years,” she said.

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Future

However, she added that while Ireland to date has done very well as a fund administration and processing centre, “building on this to attract asset managers to locate here, so funds can be managed directly from Ireland, is vital for continued growth” .

Overall the report noted that the environmental, social and governance fund sector (ESG) is likely to become more important into the future.

“With $110 trillion in assets under management, and growing, this industry has the power to literally change the world from an ESG perspective,” the report found.

It also found huge potential in the retirement sector, with pension fund assets expected to grow to almost $65 trillion globally by 2025, and assets under management in infrastructure funds expected to double by 2025.