Equity ETFs Underpin Robust Growth of the Irish Fund Market

New findings from the 30th edition of Monterey Insight Ireland Fund Report, reveal the market shares of all service providers in Ireland’s funds industry.

The total market share of Irish domiciled and serviced funds increased by 13.7% in US Dollars, and 15.8% in Euro, in 2024. The total number of funds and sub-funds serviced in Ireland increased by 1.5% during the same period, while the assets of Irish domiciled funds increased by 15.9% USD and 18% EUR compared to 2023. During this period, the number of Irish funds and sub-funds grew by 2.8%.

	US$bn	YoY Change	EUR bn	YoY Change
Assets Serviced	6,563.2	13.7%	6,124.1	15.8%

	No. Funds	YoY Change
Total Number of Serviced Funds	4,877	2.8%
Total Number of Serviced Sub-Funds	11,891	1.5%

In 2024 Irish domiciled equity ETFs which surpassed money market products for the first time in 2023, continue to drive growth. Equity ETFs reached US$1,071.3bn of assets, a 39.8% increase across 980 funds and sub-funds, making it once again the largest product category in the market.

Money market products remain in second place with assets of US$831.2bn and traditional equity mutual funds ranked third with assets of US$736.7.0bn.

Among assets over US$10 billion, Equity ETFs also rank first in terms of asset growth, with the above mentioned 39.8% increase outpacing Private Equity/Venture Capital in second place at 22.9% and fixed income ETFs in third at 21.6%.

In terms of combined market share, alternative investment products (primarily hedge funds) continue to hold the leading position with US$1,077.5bn. Equity ETFs secure the second spot with US$1,071.5bn, pushing equity funds to third place with US$1,068.8bn.

Within assets exceeding US$10 billion, Private Equity/Venture Capital grew by 45.2%, follow by equity ETFs at 39.8%, and fixed income ETFs at 21.6%.

During the period, over 590 new Irish funds and sub-funds were launched, accounting for US$106.5bn. Overall, the inflow of new business for Irish and non-domiciled funds and sub-funds, came to US$248.2bn with 1,014 funds.

Among the newly launched Irish funds, Equity ETFs led with 111 funds and sub-funds, totalling US$32.7bn in assets which represents 30.7% of new Irish products.  Broadening the scope to include domiciled, serviced and newly reported funds, Equities topped the list with 194 funds and sub-funds totalling US$63.9bn in assets, followed by Private Equity/Venture Capital with US$62.9bn and 167 funds and sub-funds.

As of 30th June 2024, there were 205 Irish funds and sub-funds listed under Article 9 (EU SFDR), accounting for US$57.6bn. This represents an asset value increase of 38% compared to the previous year.

Out of the newly launched Irish funds, 41 were classified under Article 9 (EU SFDR), amounting to a total of US$20.9bn. Equity ETFs made up 93% of these assets. This equates to US$19.5 billion, representing 18% of the overall new Irish domiciled business.

In the combined ranking of both domiciled and non-domiciled funds, BlackRock Financial Management again maintained its lead in total net assets, while Vanguard Group secured second place, ahead of Goldman Sachs.

BlackRock Financial Management retained its status as the largest promoter/initiator of Irish domiciled funds, with total net assets of US$1,225.8bn. They were followed by Vanguard Group with US$293.9bn, and PIMCO with US$199.1bn. 

Rank	Promoters/Initiators of serviced funds	Total Net Assets US$bn
1	BlackRock Financial Management	1,267.0
2	Vanguard Group	293.9
3	Goldman Sachs	228.0
4	PIMCO	199.4

For serviced funds, the top three positions for Management Company/AIFM remained consistent with the promoter/initiator ranking, however Waystone increased its position from twentieth up to fourth, due to their acquisition of KBA Consulting Management during the reporting period.

For Irish-domiciled funds, BlackRock Asset Management Ireland and Vanguard Group (Ireland) maintained the first and second positions respectively. Carne Global Fund Managers (Ireland) secured the third spot again with US$206.1bn, remaining ahead of PIMCO Global Advisors (Ireland). 

Rank	ManCo/AIFM of serviced funds	Total Net Assets US$bn
1	BlackRock Asset Management Ireland	1,223.8
2	Vanguard Group (Ireland)	293.9
3	Goldman Sachs Asset Mgt Fund Services (IRL)	224.1
4	Waystone Management Company (IE)	212.9

State Street has maintained its top position for administration services since 2013. Its custody business for combined domiciled and serviced funds has maintained an even longer standing lead, dating back to 2011. However, BNY have moved up to second overtaking Northern Trust who sit in third, with JP Morgan retaining the fourth spot. 

Rank	Administrators of serviced funds	Total Net Assets US$bn
1	State Street Fund Services	1,682.4
2	BNY	1,053.7
3	Northern Trust	681.3
4	JP Morgan	526.4

Terri Dempsey, Country Head, Ireland at State Street, commented:

“The sustained growth of the Irish fund market underscores Ireland’s critical role as a global centre of excellence for fund management and servicing. At State Street, we take pride in maintaining our leadership across investment servicing, reflecting our steadfast commitment to operational excellence, technology innovation, and client-centricity.

This year’s results highlight not only the resilience and adaptability of the industry but also the increasing demand for sophisticated solutions that address evolving client needs and market trends. Ireland’s ability to attract significant new business, coupled with its strong regulatory framework, positions the country as a vital hub for global investment activity. State Street remains dedicated to supporting the continued success of our clients and the broader market as we collectively drive forward this remarkable growth story.”

Among custodians of domiciled and serviced funds, State Street Custodial Services rank first, having the largest assets under custody. The Bank of New York Mellon SA/NV, Dublin Branch secures the second position, followed by Northern Trust.

Rank	Custodians of serviced funds	Total Net Assets US$bn
1	State Street Custodial Services	1,506.1
2	The Bank of New York Mellon SA/NV, Dublin Branch	1,020.8
3	Northern Trust	678.0
4	JP Morgan	506.9

Regarding the transfer agents ranking of serviced funds, State Street Fund Services holds the first position. They are followed by Northern Trust in second position and BNY in third, ahead of JP Morgan. 

Rank	Transfer Agents of serviced funds	Total Net Assets US$bn
1	State Street Fund Services	2,069.2
2	Northern Trust	681.6
3	BNY	517.2
4	JP Morgan	507.1

Among Ireland’s professional audit firms PwC maintains a longstanding lead in auditor’s rankings, for the number of funds serviced, across both domiciled and serviced funds. They are followed by Deloitte who have moved up to a close second place overtaking KPMG now in third position. 

Rank	Auditors of serviced funds	No. Funds
1	PwC	2,283
2	Deloitte	2,212
3	KPMG	2,072
4	EY	1,304

In the asset rankings of serviced funds, Deloitte take the first spot with US$1,591.9bn and KPMG also move up one rank to position in second with US$1,322.5bn. PwC lose their lead of many years, coming third with US$1,296.7bn.

For Irish domiciled funds, PwC also lead in number of funds with 1,924, followed by Deloitte in second place with 1,774 and KPMG in third with 1,533.  Deloitte retain the lead position in assets with US$1,461.9bn. However, KPMG overtake PwC this year with US$1,191.1bn and US$1,154.7bn respectively. EY follow up in fourth with US$785.5bn.

Mary Ruane, Leader, PwC Ireland Asset & Wealth Management, said:

“We are delighted that PwC continues to be the number one auditor to the asset and wealth management industry in Ireland.  

In a time of transformation in the industry, there continues to be significant opportunities for asset managers to reinvent their organisations and grow revenues. PwC’s latest global asset & wealth management Revolution report revealed that four-fifths (80%) of global Asset and Wealth Management (AWM) organisations expect disruptive technologies such as AI to fuel revenue growth, with those moving quickly to adopt ‘tech-as-a-service' potentially seeing a 12% boost to revenues by 2028. More than four-fifths (81%) are contemplating strategic partnerships, consolidations, or mergers and acquisitions to build an extended tech ecosystem to drive growth.  At the same time, 30% of asset managers say they are currently facing a lack of relevant skills and talent.

The PwC report found that global Assets Under Management held by AWM organisations around the world is projected to hit US$171 trillion by 2028 at a 5.9% compound annual growth rate (CAGR), with alternatives to grow quicker – at 6.7% CAGR, to reach $27.6 trillion by 2028.

Ireland continues to prove itself as a global centre of excellence for international funds. PwC’s latest Asset & Wealth Management report reveals that Irish assets under management are expected to reach EUR 6.8 trillion by 2028, representing a compound annual growth rate (CAGR) of 10.6% over the next five years. 

This growth rate surpasses the previously projected CAGR of 10.3% for the 2022-2027 period, as Ireland plays an increasingly important role in the global trend towards growth in both ETFs and alternatives.”

Among legal firms, for Irish domiciled funds, Dillon Eustace maintain their top position, in front of Matheson ranked second and Maples Group in third place. For market share ranking by assets, Matheson continue to lead for Irish domiciled funds with US$1,330.7bn. William Fry maintain second place with US$1,090.4bn ahead of Dillon Eustace.

Rank	Legal Advisers of domiciled funds	No. Funds
1	Dillon Eustace	1,473
2	Matheson	1,309
3	Maples Group	954
4	Arthur Cox	803

Etain de Valera, Head of Asset Management and Investment Funds in Dillon Eustace commented: “Dillon Eustace is very pleased to have retained our position as No.1 legal adviser to Irish domiciled funds. These numbers are a testament to the knowledge and expertise of our market leading asset management team as well as the quality of our services. We put our clients at the centre of what we do and our reputation for delivering excellent, responsive and pragmatic legal advice continues to contribute to our growth year on year. Despite the recent global uncertainty, Ireland as a jurisdiction has rightfully maintained its position as a centre of excellence for investment funds and we are delighted to be able to play a part in this.

We expect to see the continued rise of the ETF and further growth in the establishment of private asset funds in 2025.    We believe Ireland will continue to leverage off the breadth of experience available in the Irish market in servicing these asset classes, as well as the more traditional asset classes, to stay at the forefront of the global asset management industry. 

Dillon Eustace has one of the largest and longest standing Asset Management and Investment Funds practices in Ireland giving us unrivalled resources and depth. Our team works across all product types from traditional UCITS, ETFs, money market funds and alternative UCITS, to the full spectrum of Alternative Investment Funds (AIFs) such as hedge, funds of funds, real estate, infrastructure, loan and private equity funds. We advise on product design, authorisation, migration, listing, marketing, contract negotiation as well as general legal, tax and regulatory compliance issues.”

For the 12th consecutive year, Maples Group continue to lead as the largest legal adviser by funds serviced in Ireland. They are followed closely in second place by Dillon Eustace and in third position by Matheson.

For the market share ranking of serviced funds by assets, Matheson lead with US$1,351.1bn. William Fry maintain their second place with US$1,090.4bn ahead of Dillon Eustace.

Rank	Legal Advisers of serviced funds	No. Funds
1	Maples Group	1,577
2	Dillon Eustace	1,528
3	Matheson	1,339
4	Arthur Cox	804

Eimear O’Dwyer, Co-Head of the Irish Funds & Investment Management Group at Maples and Calder, the Maples Group’s law firm commented on the results:

"We are proud to have maintained our position as the largest legal adviser by funds serviced in Ireland for the 12th consecutive year. With 18 specialist investment funds partners as well as 3 tax partners with extensive funds focus and expertise and over 60 full-time specialist investment fund lawyers and other professionals, our Irish Funds & Investment Management Group is the largest dedicated investment funds team of any Irish law firm and that depth of bench reflects the size of our business. Working alongside our offices in other key financial markets, including Luxembourg and the Cayman Islands, we have an unrivalled view of the global funds and investment management sphere and leverage this unique perspective for the benefit of our clients."

Eimear added, "Looking at the year ahead, we expect continued growth in the ETF space. At the other end of the liquidity spectrum, we are seeing more interest in the use of Ireland as a domicile for private assets funds, in particular private credit. We expect that to ramp up as we get closer to the implementation of AIFMD II in 2026, which will introduce a harmonised pan-European regime for direct lending funds, based on the existing Irish regulatory framework.”

Turning to sponsoring brokers, the top three rankings remain unchanged with Maples Group in first position followed by Matheson in second and Dillon Eustace in third place. However, this year, Arthur Cox Listing Services has taken the fourth position ahead of IQ EQ.

Rank	Sponsoring Brokers of serviced funds	No. Funds
1	Maples Group	295
2	Matheson	288
3	Dillon Eustace	220
4	Arthur Cox Listing Services	138

Karine Pacary, Managing Director at Monterey Insight commented: 

“We are pleased to reveal the new results of the Irish Fund Industry in our 30th edition of the Monterey Irish Fund Report 2024.

With double-digit growth, the Irish fund market continues to shine as a global centre of distinction for investment funds, driven by robust growth in equity ETFs and products with an ESG focus. In a dynamic environment characterised by intense competition and numerous mergers and acquisitions, Ireland remains at the forefront of innovation and excellence in fund management.”

For more information, please contact:

Karine Pacary, Managing Director, Monterey Insight

Tel. +44 (0)845 625 3863

Email: karine.pacary@montereyinsight.com

Notes to Editors

Monterey Insight is an independent fund research company that provides comprehensive statistical analysis of the Ireland, Luxembourg, Guernsey, Jersey and UK fund industries: the only complete reference of service providers for all funds serviced in these jurisdictions.

Source: Monterey Insight Ireland Fund Report 2024.