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24 October 2018
Irish Funds Greenwich Seminar 2018
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Premium Sponsors
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Event Partners
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Brian Forrester
Chairperson, Irish Funds
Partner, Deloitte
Welcome Address
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Industry Update and Key Developments
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Who/what we are….
• industry association for all aspects of regulated cross border funds in Ireland
o representative function
o promotional function
• 137 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
• A member of EFAMA and IIFA
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The Irish funds industry: a snapshot
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A Global Funds Centre…
Source: Monterey Ireland Report 2017
• 917 Fund managers from 53
countries use Ireland to
domicile or service their
investment funds
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With Global Distribution
Source: Lipper IM
• Data from the Central Bank of Ireland shows Irish domiciled funds have investors from
90+ countries around the world
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Total Assets Under Administration –
Split between Irish & Non Irish Funds
Source: All data sourced from Central Bank of Ireland
989
1,271
2,052 1,9462,079
2,515 2,441
2,901
3,754
4,097 4,1324,310
5,289
5,785
689959
1,188899 1,078 1,288 1,365
1,6191,854 2,020 2,062 2,194
2,875 2,910
300
313
864 1,0471,001 1,227 1,075
1,282
1,900 2,077 2,0712,116
2,414
2,875
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 June-18
US
D B
illi
on
Total Domiciled and Non-Domiciled
Assets Under Administration
Total Non Domiciled Total Domiciled
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Irish Domiciled Assets
• UCITS represent 75% of Irish
Domiciled Assets
• 88 UCITS Man Cos
• 164 AIFMs Registered or Authorised
• 695 AIFMs operating in Ireland on
cross border basis
• 467 ICAVs established (since 18 March
2015)
All data sourced from Central Bank of Ireland (Oct
2018)
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Growth of Largest European Fund Domiciles
Source: EFAMA Statistics
0%
20%
40%
60%
80%
100%
120%
140%
2011 2012 2013 2014 2015 2016 2017
% G
row
th
2011 2012 2013 2014 2015 2016 2017
Europe 0% 13% 23% 42% 58% 78% 97%
Luxembourg 0% 14% 25% 48% 67% 77% 98%
Ireland 0% 16% 27% 57% 80% 98% 126%
France 0% 9% 10% 14% 21% 29% 37%
Germany 0% 13% 24% 40% 53% 66% 80%
UK 0% 17% 35% 59% 79% 77% 99%
Europe Luxembourg Ireland France Germany UK
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Irish Domiciled Funds – Net Sales
• Net sales for 2017 were more than double the total for 2016
• Net sales into Irish domiciled funds accounts for 30% of the
European total
Source: All data sourced from Central Bank of Ireland
113
182
126153
339
0
50
100
150
200
250
300
350
400
2013 2014 2015 2016 2017
US
D
Billi
on
s
Net Sales - Total Domiciled Funds
Net Sales - Total Domiciled Funds
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Brexit - three interdependent themes
Distribution
Management
Models
(‘Delegation’)
Growth
OVER 2,700 IRISH
FUNDS SOLD TO UK
INVESTORS
$636bn
IN IRISH FUND ASSETS
MANAGED BY 175+ UK
FIRMS IN IRELAND
Continuity in UK investor
access to Irish funds
Continuity in
UK firm
management
of Irish funds
Increase Ireland’s growth
trajectory as an
international asset
management centre
SOURCE: Lipper IM Dec 2017
Monterey Ireland Fund Report 2017
Current context Target outcome
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Other developments……….
• Updating of Ireland’s Investment Limited Partnership Legislation
• On the parliamentary schedule as a piece of priority legislation for the current term.
• Will provide additional scope for private equity and real asset funds.
• Reform of the European Supervisory Authorities (ESAs)
• Industry engaging intensively to ensure delegation of portfolio management continues in current form
and under scrutiny of national regulators without additional oversight / approval from ESMA
• Exchange Traded Funds (ETF)
• CBI in September published their response to ETF Discussion Paper with various policy changes
flagged
• EU Cross Border Distribution
• Industry continues to input on this engagement to increase efficiency of EU cross border distribution
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Other developments……….
• Pan European Personal Pension Plan (PEPP)
• Industry white paper published on PEPP and prepared case studies which assisted progression through
ECON committee. Now progressing through trilogue with more favourable pay-out provisions.
• AML
• Industry have engaged in consultation on the new 4th AML Directive which has been published and is
due to be enacted before the end of 2018 and will engage with the CBI regarding new AML Guidance
Notes
• Tax Transparency
• OECD has awarded Ireland the highest international rating on tax transparency and exchange of
information.
• Industry in discussion with authorities on implementation of Mandatory Disclosure Regime
• Money Market Fund Regulation (MMFR)
• Industry has been very actively engaging on the issue of reverse distribution mechanisms ahead of the
new MMFR coming into effect in Jan 2019
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Conclusion
EU Member & Strategically Positioned
+
International Hub for Globally Distributed Investment Funds
+
Unrivalled Experience and Expertise & the Widest Range of Fund Structures
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Bruce McGuire
Founder & President, CTHFA
CTHFA Address
Moderator:
Panellists:
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Panel Discussion: Options for Accessing
European Markets
Peter Sanchez, Northern Trust Hedge Fund Services
Kimberley West, AMX
Rob Harrison, Equity Trustees
Ramona Heine, Heine & Kim Fiduciary Partners
Iain Ferguson, McCann Fitzgerald
Moderator:
Panellists:
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Panel Discussion: Fund Distribution –
Harmonisation and Regulation Across
Europe
Max Rijkenberg, PAAMCO
Michelle Ridge, Matheson
Rob Drake, Bury Street Capital
Scott Merkel, Lyxor Asset Management
Moderator:
Panellists:
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Panel Discussion: Brexit – Developments
and Implications
Kieran Fox, Irish Funds
Des Fullam, Carne
Mark Browne, Dechert
David Walsh, Dillon Eustace
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Kieran Fox, Irish Funds
Closing Remarks
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