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irishfunds.ie2
Hong Kong Seminar
15 January 2018
3 irishfunds.ie
Hong Kong, 15 January 2018
Industry Update & Key Developments
Pat Lardner
Chief Executive
4 irishfunds.ie
Who / What are we
• industry association for all aspects of regulated cross border funds
in Ireland
o representative function
o promotional function
• 125 member firms, located both in and outside Ireland
• key link to the authorities & policy makers in Ireland and beyond
• the industry’s representative in Europe and globally
• a platform for collaboration, information sharing and driving
outcomes & improvement
5 irishfunds.ie
The Irish Funds Industry
• supports managers from all over the
world
• full range of services for Irish
domiciled funds as well as providing
expert services for funds domiciled
outside of Ireland
• solutions are provided to managers
across the full spectrum of
investment strategies
Fund Managers
903
Irish Administered
Funds
Irish Domiciled Funds
€2.4 trillion
UCITS
€1.8 trillion
AIFs
€0.6 trillion
Non Domiciled Funds
€2 trillion
Source: Central Bank of Ireland, October 2017, figures rounded to nearest €0.1bn
6 irishfunds.ie
What does the industry in Ireland
provide?
• EU Single Market Access: product & service
passports
• Investor Access: European Market and beyond
• Service Excellence / Developed Ecosystem
• Low Costs
• Low Tax Environment
• Regulatory Environment
• Commitment from Government
• Infrastructure : language/legal/telecommunications
Best Country in
Western Europe to
invest in
1st
FLEXIBILITY AND
ADAPTABILITY
OF PEOPLE
1st
IN EUROPE FOR
COMPLETION OF
3RD LEVEL
EDUCATION
irishfunds.ie7
Why Ireland?
Distribution and investor support
Global Distribution of Irish UCITS
• broad mix of institutional
and retail clients served
• 30 languages supported
• 23 currencies supported
Source: Lipper, PwC & Irish Funds, 2015
irishfunds.ie8
Total Assets Under Administration
636
838965
1,394 1,398 1,443
1,883 1,886
2,199
2,722
3,375
3,806
4,0954,273
434584
728 807646 748
964 1,0551,227 1,344
1,6641,899
2,0852,298
202
254 237
587752
695
919831
972
1,378
1,711
1,907
2,0111,976
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Sep-17
EU
R
Billi
on
Irish Domiciled and Non-Domiciled Fund Assets - € billion
Total Non Domiciled Total Domiciled
Source: Central Bank of Ireland
irishfunds.ie9
Irish Domiciled Asset Breakdown
• UCITS represent 75% of Irish
Domiciled Assets
• 86 UCITS Man Cos
• 161 AIFMs Registered or
Authorised
• 630 AIFMs operating in
Ireland on cross border
basis
• 390 ICAVs established
(since 18 March 2015)
Source: Central Bank of Ireland
irishfunds.ie10
Growth of largest European fund
domiciles
Source: EFAMA Statistics
2011 2012 2013 2014 2015 2016 2017 Q3
Europe 0% 13% 23% 42% 58% 78% 92%
Luxembourg 0% 14% 25% 48% 67% 77% 93%
Ireland 0% 16% 27% 57% 80% 98% 118%
France 0% 9% 10% 14% 21% 29% 39%
Germany 0% 13% 24% 40% 53% 66% 78%
UK 0% 17% 35% 59% 79% 77% 92%
0%
20%
40%
60%
80%
100%
120%
% C
um
ula
tive
Gro
wth
Europe Luxembourg Ireland France Germany UK
irishfunds.ie11
Irish domiciled funds – net sales
Net sales for
YTD Sept 2017
have surpassed
the total for 2016
– which itself
was a record
year
Source: Central Bank of Ireland
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016 YTD Sept2017
€b
illi
on
Net Sales: Ireland v Total European Union
Ireland Net Sales EU Net Sales
irishfunds.ie12
Brexit interdependent themes
Distribution
Management
Models
(‘Delegation’)
Growth
OVER 2,000 IRISH
FUNDS SOLD TO UK
INVESTORS1
€613 bn2 IN IRISH FUND
ASSETS MANAGED BY
170+ UK FIRMS IN
IRELAND2
Continuity in UK investor
access to EU/Irish funds
Continuity in
UK firm
management
of Irish funds
Increase Ireland’s growth
trajectory as an
international asset
management centre
SOURCE: 1-Lipper IM Dec 2015
2-Monterrey Ireland Fund Report 2016
Current context Target outcome
irishfunds.ie13
Structuring options: Management
models
MiFID Firm
Super ManCo w/ Add-on Authorisations (‘v2’)
Super ManCo w/ Delegates (‘v1)
SMIC• Simple option for single umbrella fund
DEFINITIONS:
• ‘MiFID Firm’: Investment firms authorised under Markets in Financial Instruments Directive (2007, to be replaced by MiFID 2 / MiFIR in January 2018)
• ‘Super ManCo’: authorised to provide services to UCITS and AIFs w/ the option of add-on authorisations for segregated mandates
• ‘SMIC’: Self-Managed Investment Company
Global
Asset
Managers
Regional
Asset
Managers
Management
Models (‘Delegation’)
14 irishfunds.ie
Other developments….
• Updating of Ireland’s Investment Limited Partnership Legislation
• Legislative amendments approved by Irish Government.
• Entering legislative process
• Will provide additional scope for private equity and real asset funds.
• European Commission ESAs Proposals
• While there are aspects to the European Supervisory Authorities (ESAs)
proposals we welcome, there are a number of areas which are of significant
concern. We have shared our views in Ireland and in Europe.
• Strong advocates of delegation to globally based experts.
• Loan Origination
• We continue to engage with the CBI and Public sector with a view to
enhancing the current Loan Origination offering.
• Tax Transparency
• OECD has awarded Ireland the highest international rating on tax
transparency and exchange of information.
• EU Cross Border Distribution
• Consultation on removing barriers to Cross Border Distribution submitted
2016 and follow-up questionnaire completed 2017.
• We have subsequently met with the European Commission.
• Expected Q1 2018
15 irishfunds.ie
Other developments….
• Pan European Personal Pension Plan (PEPP)
• Industry white paper published on PEPP.
• We have subsequently met with the European Commission.
• Financial Action Task Force (FATF) Mutual Evaluation Report (MER) of
Ireland
• FATF’s assessment of Irelands anti-money laundering and counter
terrorist financing concluded that “Ireland has a sound and substantially
effective regime to tackle money laundering and terrorist financing….”
In addition the Report highlights “National coordination mechanisms…
and the Private Sector Consultative Forum (PSCF) were fruitful in
broadening the understanding of its ML and TF risks across all relevant
agencies and with the private sector.”
• CBI engagement re Exchange Traded Funds (ETF)
• Responded to Central Bank of Ireland (CBI) ETF discussion paper and
engaged with the CBI throughout the process.
• Consultation paper on CIS Liquidity Risk Management
• Response provided to the International Organization of Securities
Commission (IOSCO) Consultation paper.
16 irishfunds.ie
Conclusion
• EU Member & Strategically Positioned
+
• International Hub for Globally Distributed
Investment Funds
+
• Unrivalled Experience and Expertise in the
Widest Range of Fund Structures
Disclaimer: The material contained in this document is for marketing, general information and reference
purposes only and is not intended to provide legal, tax, accounting, investment, financial or other
professional advice on any matter, and is not to be used as such. Further, this document is not intended
to be, and should not be taken as, a definitive statement of either industry views or operational practice.
The contents of this document may not be comprehensive or up-to-date, and neither Irish Funds, nor any
of its member firms, shall be responsible for updating any information contained within this document.
17 irishfunds.ie
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Connie Boland
Economic Research Analysis Ltd
Keynote Presentation:
Economic Market Update
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Moderator:Julie Kerr, EY
Panellists:David Quah, Value Partners
Shay Lydon, Matheson
Simon Lee, CSOP Asset Management
Paul Heffernan, HSBC
Nik Bienkowski, HANetf
Panel One: ETF Update
20 irishfunds.ie
Moderator:James Lloyd, EY
Panellists:Benedicte Nolens, Securities and Futures Commission
Byron Wong, Yunfeng Financial Group
Fireside Chat:
The Market Opportunity and
Regulatory Environment for Online
Advisory Platforms in Asia
21 irishfunds.ie
Moderator:Michelle Lloyd, Maples and Calder
Panellists:Mark Dillon, Deacons
Paul Moloney, Eversheds
Winnie Pun, BlackRock
Marie Gervacio, EY
Panel Two:
Perspectives on the Irish and
Global Regulatory Agenda
22 irishfunds.ie
Michael D’Arcy
Minister of State at the Department of Finance
Keynote Address
23 irishfunds.ie
Conor O’Mara
Jefferies
Closing Comments
24 irishfunds.ie
Kindly sponsored by EY
Drinks Reception
25
irishfunds.ie25
Hong Kong Seminar
15 January 2018
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