New findings from Monterey Insight, the independent fund research company, reveal the market shares of all service providers in Ireland’s funds industry.
Ireland fund industry continues a steady growth of 1.5% reaching US$2,605bn at the end of June 2015. The total number of sub-funds reached 7,283 (a slight increase on the 7,057 of the previous year) of which 4,304 are domiciled in Ireland. The number of Irish domiciled funds has grown by 10.5% since 2014 when the total of funds was 4,048.
For fund administration services across both domiciled and non-domiciled funds, State Street Fund Services has maintained the largest market share for fund assets under administration (US$676.2bn), with BNY Mellon (US$418.7bn) ranked second. In third position is Northern Trust (US$338.3bn) who are closely followed by JP Morgan (US$311.0bn).
The amount of new Irish schemes (and their sub-funds) launched during the year stood at US$20.1bn with a total of 194 sub-funds.
Looking at the complete picture, over 680 Irish schemes and sub-funds (including new sub-funds in existing umbrellas) were launched during the year representing US$89.6bn of which, 35 sub-funds totalled US$45.6bn. On the non-domiciled business, over 420 funds were launched in the same period with assets in excess of US$82.3bn.
Among custodians for both domiciled and non-domiciled funds, as last year, State Street Custodial Services have the largest quantity of assets under custody (US$608.1bn), ahead of BNY Mellon Trust Company (US$384.3bn) and Northern Trust (US$ 338.4bn).
PwC remains the leading fund auditor for funds serviced in Ireland, auditing a total of 2,584 funds, followed by KPMG and EY. Although PwC holds top position on combined and domiciled rankings, EY and PwC are head to head on the non-domiciled rankings.
Among legal advisers, Maples & Calder maintained its first position for funds serviced in Ireland providing legal advice to 1,269 funds, closely followed in second place by Dillon Eustace (1,119 funds). However for Irish domiciled funds, these positions were reversed with Dillon Eustace (1,016 funds) taking top spot ahead of Maples and Calder (763 funds). On the market share ranking by assets, Matheson ranks first on both Irish domiciled and serviced funds.
Among fund management companies, the largest fund promoter of Irish domiciled schemes is BlackRock having increased total net assets from US$389.5bn to US$397.8bn, followed by PIMCO US$109.0bn, and in third position Insight Investment US$107.4bn. US fund management companies, account for the largest proportion of Ireland domiciled funds with a total of 1,553 funds and a total of US$1,084bn assets under management.
UK fund management companies had an increase of 3% in both the number of funds and assets in contrast to the US promoters who were more dynamic in launching funds (8% increase) but had no growth in terms of assets compared to last year.
Turning to the investment products, money market funds decreased in 2015 to US$518.6bn (compared to US$564.3bn in 2014) but still hold first position. In second position, equity funds follow with a slight increase to reach US$381.7bn. Third position is held by bond products which dropped for the first time since 2009 to US$334.1bn.
Best performance was in exchange traded bonds/equities which increased in 2015 to a total of US$246.1bn (compared to US$207.2bn in 2014), an increase of 19% compared to last year. This was followed by a second area of growth in alternative investments which increased by 6%.
Karine Pacary, Managing Director at Monterey Insight commented “Our 21st edition of the Monterey Ireland Fund Report revealed a year of steady growth in terms of assets but a more dynamic approach in terms of new funds launched. This year was marked by individual and scattered performances.
In excess of 75 new asset managers have chosen Ireland to establish their funds, as a result 119 new umbrellas serviced in Ireland (domiciled and non-domiciled schemes) have been launched, totalling over 150 sub-funds with US$10.3bn. It is pleasing to see the Irish Fund Industry continuing to attract new business in an evolving regulatory environment.”
Industry Comments:
Rachel Turner, Head of Offshore, BNY Mellon’s asset servicing business commented:
“These latest figures from Monterey are testament to Ireland’s enduring and deserved status as a centre of excellence and a key domicile for the global investment management industry,” says Rachel Turner, head of offshore for Asset Servicing at BNY Mellon, based in Dublin. “The sustained level of growth and the attractiveness of this market as a funds destination highlight the Irish authorities’ success in adapting to the host of regulatory changes we have seen in recent years. Over a number of decades the Irish funds industry has built up a wealth of knowledge and experience that is as deep as it is broad, and can offer an impressive pool of local talent that managers and administrators can tap. Those qualities and capabilities will be more important than ever as the industry navigates the many new regulations coming down the pipe over the next two to three years, not least the key deadline next March for UCITS V compliance.”
Brian Dillon, Partner in Financial Services Department, Dillon Eustace commented:
“Dillon Eustace are delighted to have extended their position as the leading legal adviser to Irish regulated funds during the past year. The significant addition of almost eighty funds advised by Dillon Eustace reflects the hard work done on behalf of our clients by the experienced and dedicated team of fund lawyers working at Dillon Eustace. In addition, as our clients’ fund business in Ireland expands they recognise the expert advice available to them in other departments at Dillon Eustace including regulatory and compliance, banking and capital markets, tax, employment, real estate and financial services dispute resolution”
Barry McGrath, Head of Investment Funds at Maples and Calder's Dublin office said:
"We are delighted to have strengthened our position as the number one Irish legal advisor for total number of investment funds advised. In addition, we have been ranked number one in terms of new sub-fund launches for each of the last five years, demonstrating Maples' central role in the Irish funds industry at the forefront of both innovative product development and regulatory change".
Tara Doyle, Head of Matheson’s Asset Management and Investment Group commented:
“We welcome the results of the Monterey Insight Ireland Fund Report 2015 which ranks Matheson as the number one funds practice in Ireland, acting for 28% of Irish domiciled investment funds by assets under management, for the fifth year in a row. The results of the report clearly reinforce our position as the leading asset management and investment funds practice in Ireland.”
Clive Bellows, country head of Ireland at Northern Trust commented:
“As a jurisdiction Ireland’s commitment to embracing the evolving regulatory landscape and the changing demands of its global client base ensures it not only remains a key funds centre but one that will continue to grow,” said Clive Bellows, Country Head, Ireland at Northern Trust. “Ireland is a key funds centre for Northern Trust, providing fund administration and servicing our clients around the world, and through our offices in Limerick and Dublin we look forward to continuing to evolve and grow with them.”
Olwyn Alexander, Leader of the PwC Ireland Asset Management Practice, said:
"We are really pleased to continue our market leading position as Ireland's No. 1 auditor to the asset management industry yet again this year. PwC audits funds with in excess of 1 trillion USD in net assets. We are also delighted to continue to lead in all categories - domiciled and non-domiciled, by assets and by number of funds, which is testimony to our depth and expertise in both mainstream and alternative funds.
PwC is very optimistic about the growth we predict in both the Irish and the global asset management industries. Our significant client base continues to expand their product ranges and assets under management while we have welcomed many new clients to Ireland in the last twelve months. We are seeing a significant increase in demand for regulatory, tax and advisory services also with the increasing complexity of the global landscape and that brings plenty of new opportunities for our Irish asset management business. Ireland has established itself as a centre of excellence both as a fund domicile and a fund servicing centre. We have a proven, world class, pro-business environment with our fully transparent tax framework, our highly skilled talent pool and our highly productive and flexible work ethic, making us especially attractive to global asset managers. Ireland is well positioned to continue to grow its asset management industry and provide high value jobs. PwC's top priority is to support our clients as they position themselves for growth and help create value in their businesses. These results are a tribute to our people working in our Asset Management practices in Dublin, Kilkenny and Cork and to the strength of our global asset management network."
Susan Dargan, EVP and Head of Global Services for State Street commented:
“State Street helps fund promoters and investment managers from around the world, providing them with strong innovative solutions that enable them to focus on their core business. Next year marks State Street’s 20th Anniversary in Ireland, we are very proud to celebrate this milestone as well as retaining and strengthening our position as the leading provider of administration and custody services in Ireland.”
Notification of mergers and name changes:
The following mergers and name changes took place:
Credit Suisse Administration Services was acquired by BNP Paribas Fund Services
Credit Suisse Custodial Services was acquired by BNP Paribas Securities Services
Phoenix Financial Services changed its name to Inbhear Fund Services
Administrator entries of State Street and IFS were combined in this report
SS&C GlobeOp changed its name GlobeOp Financial Services (Ireland)