New findings from the 26th edition of Monterey Insight Ireland Fund Report, the independent fund research company, reveal the market shares of all service providers in Ireland’s funds industry.
Fund assets serviced in Ireland rose by 10% reaching US$4,280.1bn at the end of June 2020, up from US$3,903.4bn in 2019. The total number of sub-funds reached 9,402 (an increase from the 9,249 of the previous year). Looking at Irish domiciled funds only, the number of funds and sub-funds has grown by 2.0% to 5,715 (from 5,607 in 2019) reaching a market size of US$3,311.8bn, an increase of 10.4% of total fund assets.
Similar to previous years, across Irish domiciled funds, money market funds remain the largest asset class increasing by 20% to US$698.0bn, followed by bond & equity products: bonds were up by 2% to US$560.1bn and equities up by 2% to US$549.0bn.
Over 600 Irish groups and sub-funds were launched during the year representing total assets of US$90.4bn. The largest type of product launched during the year was alternative investment funds* with US$29.1bn and circa 150 funds and sub-funds. They were followed in assets by equity products with US$17.6bn and over 150 sub-funds.
(*including hedge funds, but excluding private equity, private debt, property/real estate products)
A topic high on everyone’s agenda, there is little surprise that ESG top the ranking for industry focus in new Irish funds with US$12.2bn.
State Street maintain their top position in all categories, being the largest player for administration, custody and transfer agency services. and increasing their assets for each role: assets under administration US$1,380.0bn, custody US$1,265.1bn and transfer agency US$1,204.2bn.
Tadhg Young, Head of State Street Ireland, commented:
“This year marks State Street’s 25th anniversary in Ireland, and we are proud to continue our market leadership for fund administration, custody and transfer agency services increasing our assets in every category. Our market position reflects our continued commitment to clients and our ability to be innovative and flexible throughout the pandemic. This has ranged from seamless business continuity to dialling up our client communications to fully support them in generating and sustaining growth.”
In more detail, for fund administration services across both domiciled and non-domiciled funds, State Street Fund Services (US$1,380.7bn) continue to lead in the top spot but Northern Trust (US$565.3bn) create the surprise this year and move into second place followed by BNY Mellon (US$530.3bn) in third and JP Morgan in fourth position with US$423.9bn.
Among custodians of serviced funds, State Street Custodial Services rank first having the largest assets under custody (US$1,265.1bn), ahead of Northern Trust (US$560.4bn) who also jump into the second spot this year ahead of The Bank of New York Mellon SA/NV, Dublin Branch (US$499.7bn) who are this year in third place.
In the transfer agents ranking of serviced funds, State Street Fund Services secure first position with total net assets of (US$1,204.2bn) followed by Northern Trust (US$566.5bn) in second position and JP Morgan (US$419.4bn) climb into third.
For serviced funds, among Ireland’s professional audit firms, as has been the case for a number of years, PwC hold the lead position in auditor’s rankings in both number of funds and assets auditing a total of 2,360 funds with US$1,352.5bn in assets. They are followed by KPMG with 1,828 funds (US$805.2bn) and Deloitte who maintain third position with 1,600 funds (US$827.4bn).
Trish Johnston, PwC Ireland Asset & Wealth Management Leader, said:
"I am delighted that PwC continues to be the number one auditor to the asset and wealth management industry in Ireland. Ireland has one of the world’s largest funds servicing industries. PwC’s recent AWM Revolution report: The Power to Shape the Future revealed that the Irish asset and wealth management industry is set to grow by up to 10.76% per year to 2025 (from 2020) to reach Euros 5.25 trillion.
These growth projections confirm the significant opportunities for Ireland’s asset management industry. PwC Ireland analysis further shows that, with the correct focus, the increased job potential for Ireland in asset management and related financial technology and payments sectors, is in excess of 6,000 over the next five years.
Bolstered by societal changes and fuelled by investor demand, ESG (Environmental, Social and Governance) represents one of the biggest opportunities for the industry. With our highly talented people, well established regional hubs, and continued access to the EU market, Ireland can be a global centre for ESG. We’ve a proven track record for innovation and tech right here in Ireland, and can achieve exponential growth in this market while contributing to the creation of a low-carbon, climate resilient and robust economy.”
Among legal firms, for Irish domiciled funds, it’s virtually level as Matheson and Dillon Eustace come very close, Matheson is first with 1,201 funds followed just behind by Dillon Eustace with 1,200.
Tara Doyle, Head of Asset Management and Investment Funds at Matheson, said:
“Matheson is delighted to be named by Monterey as the leading law firm in Ireland by assets under management for the tenth consecutive year. We are also very proud to be recognised as the leading law firm in Ireland by number of domiciled funds for the first time and to be the first law firm to advise Irish domiciled funds with assets exceeding €1 trillion. These achievements have been made possible by the confidence our clients have placed in Ireland as a funds domicile and the investment we have made in our people, who remain our greatest asset.”
For the market share ranking of legal advisers by assets, Matheson continue to rank first for Irish domiciled funds with US$1,030.6bn followed by Dillon Eustace with US$632.0bn. Amongst both domiciled and non-domiciled funds, Matheson and Dillon Eustace are also first and second respectively with US$1,035.3bn and US$651.9bn.
For both domiciled and non-domiciled funds, Maples Group remain the largest legal adviser by funds serviced in Ireland providing legal advice to 1,412 funds, followed in second place by Dillon Eustace with 1,333 funds.
Peter Stapleton, Partner and head of the Dublin Funds & Investment Management team at Maples and Calder, the Maples Group's law firm commented on the results:
"Despite what has been an incredibly challenging year, we are delighted to have retained our position as the top funds legal adviser to Irish-serviced funds for the eighth year running. As the largest international funds group in Ireland, we look forward to continuing to combine our global expertise with local know-how for the benefit of clients doing business in the Irish market."
He continued: "We would like to thank our clients for continuing to work with our market leading teams as the funds sector showed incredible resilience during 2020. This resilience is cause for optimism about the year ahead, particularly in light of recent developments in the Irish market, including the revised Investment Limited Partnership (ILP) structure, changes in the legal and regulatory landscape for sustainable finance and continuing growth in global asset managers locating in Ireland. The ILP will build on Ireland’s position as a global hub for green finance which looks set to become the dominant investment theme for years to come.”
Among the largest fund promoters/initiators of Irish domiciled schemes, the top three positions remain the same as last year: BlackRock Financial Management keep their lead and increase their total net assets to US$718.0bn, followed by PIMCO with US$210.5bn and Vanguard Group in third position with US$162.9bn.
The top three positions for Management Company/AIFM, among Irish schemes, including Irish UCITS and Irish Non-UCITS, results in the same figures as for promoters/initiators above.
Karine Pacary, Managing Director at Monterey Insight commented:
“We are pleased to share the new results of the Irish Fund Industry in our 26th edition of our Monterey Ireland Fund Report. It is pleasing to reveal a double digit increase and this proves the Irish Fund Industry's strength and resilience versus the current markets.
Since their introduction in 2015, ICAVs have proved to be an easier, more cost effective vehicle to hold an investment structure in Ireland. Their continuing popularity and effectiveness is shown in this year’s Monterey Fund Report where their year-on-year uptake has totalled in excess of US$45.1bn, more than twice the next new products by structure.
There has also been a strong drive towards ESG investing and this trend should continue upwards for the next few years.”
For more information, please contact:
Karine Pacary, Managing Director, Monterey Insight, Tel. +44 (0)845 625 3863
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.
As at 30th June 2020, leading service providers for all funds serviced in Ireland (i.e. including non-domiciled funds under administration or custody in Ireland, with the exception of one ranking table for legal advisers which contained Irish domiciled funds only) were as follows:
Source: Monterey Insight Ireland Fund Report 2020