Dublin
07 December 2016
Reporter: Stephanie Palmer

Irish funds industry sees growth in 2016


Ireland's funds industry has seen growth of 4.2 percent in 2016, according to a Monterey Insight report.

The report, released at the end of November, noted that as of June 2016, the industry was worth $2.71 trillion, up from $2.61 trillion at the same time in 2015.

The total number of sub-funds increased from 7,283 to 7,969. The number of sub-funds domiciled in Ireland saw a 7.7 percent increase from 4,304 to 4,637.

For fund administration services, State Street Fund Services maintained the largest market share by a significant proportion, with $741.7 billion under administration.

This was followed by BNY Mellon, which has $462.7 billion in assets under administration, and Northern Trust, which has $354.9 billion.

State Street also had the largest market share for assets under custody, with $666.3 billion. Again, BNY Mellon and Northern Trust were in second and third place with $408 billion and $341.9 billion, respectively.

Tadhg Young, head of global services for Ireland for State Street, commented: “In a constantly changing environment, asset managers are looking for new opportunities.”

He added: “We are very proud to maintain and further strengthen our position as the leading provider of fund administration and custody services in Ireland.”

For the first time, Monterey included management companies and alternative investment fund managers of Ireland-domiciled schemes, including Irish UCITS and non-UCITS.

In this area, Blackrock Asset Management in Ireland holds the significant portion of the market share, with total net assets of $426.4 billion.

The next largest players were PIMCO Global Advisors, Ireland with $108 billion, and then Goldman Sachs Asset Management Global Services, based in the UK, with $95.8 billion in Irish-domiciled schemes.

The most popular asset class emerged as money market funds, which saw total investment of $533.5 billion, 2.8 percent more than at the same period as 2015.

Despite seeing a dip compared to 2015, equities remained the second-most popular investment—they dropped from $381.7 billion in 2015 to $346.3 billion.

Monterey also highlighted exchange traded bonds and alternative investment, which saw increases of 28 percent and 20 percent, respectively.

Karine Pacary, Managing Director at Monterey Insight commented: “[The] Irish funds industry shows a very healthy growth in 2016. All indicators are up despite a year of unexpected and uncertain events and, at times, very volatile markets.”

She added: “Ireland managed to attract over $19.8 billion in newly launched Irish funds which again proves the attractiveness and dynamism of its fund industry.”

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