New findings from the 23rd 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 21.4% reaching US$3,293.3bn at the end of June 2017 up from US$2,713.4bn. The total number of sub-funds reached 8,492 (an increase from the 7,969 of the previous year) of which 4,922 are domiciled in Ireland with a total market size of US$2,496.8bn. The number of Irish domiciled funds has grown by 6.1% since 2016 when the total of funds was 4,637.
The amount of new Irish schemes launched during the year rose to US$32.4bn and over 252 sub-funds.
For fund administration services across both domiciled and non-domiciled funds, State Street has maintained the largest market share for fund assets under administration (US$920.3bn), with BNY Mellon (US$523.7bn) ranked second. In third position is Northern Trust (US$425.9bn) followed by new entry into fourth position, Brown Brothers Harriman (BBH) (US$316.8bn).
Among custodians for both domiciled and non-domiciled funds, as last year, State Street have the largest assets under custody (US$808.4bn), ahead of BNY Mellon Trust Company (US$472.3bn) and Northern Trust (US$ 414.3bn).
Tadhg Young, head of Global Services Ireland for State Street commented:
“We have retained and extended our position in the marketplace by staying focused on the needs of our clients. State Street consistently demonstrates that we can help our clients grow and develop their cross-border investment fund businesses across multiple products and geographies by leveraging innovative technology and our broad suite of solutions. We are especially proud that our leading positon in Transfer Agency is recognised in this year’s survey, another example of how State Street and IFDS* partner with clients in delivering truly global cross-border solutions.”
* IFDS Ireland is a joint venture between DST and State Street
Newly introduced information on transfer agents sees State Street in lead position with a total net assets of (US$728.5) followed by Northern Trust (USU$427.4bn) in second position and BNY Mellon (US$410.3bn) in third.
Among Ireland’s professional firms, PWC holds the lead position in both auditor’s rankings in number of funds and assets auditing a total of 2,816 funds with a total of US$1,674.4bn in assets, followed by KPMG with 1,543 funds (US$539.5bn) and EY with 1,205 funds (US$401.6bn).
Trish Johnston, PwC Ireland Asset & Wealth Management Leader, said:
“I am delighted that we continue to be the number 1 auditor to the Asset & Wealth Management industry in Ireland. We project that assets under management in Ireland have the potential to grow to €7 trillion by 2025. With an economy that continues to grow at above EU average GDP levels, we remain very confident about the future growth capacity for Ireland’s funds industry. Shifts in global
2/4 investment patterns to passive and alternatives, where Ireland punches well above its weight, will further fuel growth in Ireland.
However, with the uncertainties caused by Brexit and other geopolitical challenges, we cannot be complacent. Technology, and particularly the rise of AI and robotics, provides great opportunities to further manage the cost base and deliver even better products to consumers. The Irish Asset & Wealth Management industry, like its global counterparts, also needs to fully leverage technology to enable it to forge ahead."
Among legal firms, Maples and Calder remains the largest legal adviser on the volume of funds serviced in Ireland providing legal advice to 1,483 funds, followed in second place by Dillon Eustace (1,192 funds).
Peter Stapleton, Head of Investment Funds, in Maples and Calder’s Dublin office commented:
"We are delighted to be ranked as the number one legal adviser to Irish-serviced funds for the fifth year in a row. In addition to retaining this overall ranking, we continue to grow and, for the eighth year in succession, have advised on more new fund launches than any other firm. To see these incredibly positive results year-on-year is testament to the expertise and dedication of the Maples Investment Fund team. We are very grateful to all of our clients and their international advisers who have worked with us to successfully launch some of the most innovative investment fund structures from Ireland during a period of immense legal, regulatory and tax reform.
At Maples, we offer our clients world-class legal and regulatory advice complemented by global registration services, listings, management company solutions and the full range of business lines at our affiliate Maples FS, which is truly unique in the market and we look forward to further growth in 2018."
However, for Irish domiciled funds, Dillon Eustace with (1,103 funds) maintains its top position ahead of Maples and Calder with (1,020 funds), as well as being the leading Irish legal adviser to sponsor-managers of Irish domiciled funds.
Andrew Bates, Partner and Head of Financial Services, Dillon Eustace commented:
“We are proud to be recognised once again as the leading Irish legal adviser to Irish domiciled investment funds a position we have enjoyed each year since the commencement of Monterey’s Irish fund surveys. This is testament to our team’s hard work and commitment and to the trust and confidence of our clients. ”
On the market share ranking by assets, Matheson ranks first on both Irish domiciled and serviced funds, with a total of US$727.5bn followed by Maples and Calder with US$508.0bn and Dillon Eustace with US$507.8bn.
Remarking on the results of the report, Tara Doyle, Head of Matheson’s Asset Management and Investment Funds team, said
“Matheson welcomes the 2017 Monterey Insight Ireland Fund Report results in which Matheson, for the seventh year in a row is ranked the number one funds practice in Ireland by assets under management. This reflects Matheson’s clear position as the leading Irish funds practice acting for 29% of all Irish domiciled investment funds by assets. The report also highlights significant asset growth in the industry which managed to attract over US$ 32.4 billion in newly launched funds demonstrating that Ireland continues to be the European fund domicile of choice for global asset managers. In parallel with this growth, Matheson is delighted to maintain its position as the number one ranked funds practice in Ireland by assets, holding a market share which is over 9% greater than our nearest competitor.”
Among the largest fund promoters/initiators of Irish domiciled schemes is BlackRock Financial Management having increased their total net assets by 18% to US$504.6bn, followed by PIMCO US$154.0bn, and Insight Investment US$119.5bn.
For Management Company/AIFM providers, among Irish Schemes including Irish UCITS and Irish Non-UCITS, BlackRock Asset Management in Ireland takes first position with a total net assets of US$504.5bn, followed by PIMCO Global Advisors, Ireland (US$154.0bn) in second and moving up to third position Insight Investment Management (Ireland) with (US$119.5bn).
Money market funds remain the largest asset class with an increase of 5% to US$561.3bn, followed by Bonds moving into second position with an increase of 29% from US$345.6bn last year to US$447.0bn in 2017. In third position we have Equities with an increase of 21% from US$346.3bn to US$420.1bn.
Karine Pacary, Managing Director at Monterey Insight commented:
“We are pleased to report the robust results for the Irish fund industry which again demonstrate the attractiveness of Ireland as an influential fund centre. The impressive growth in net assets and number of funds provides further evidence of Ireland’s capability to attract new business and to boost its organic growth. ICAVs are now offering outstanding growth potential and appeal to both managers and investors alike. Out of the 139 newly launched Irish products, 108 were ICAVs representing USD$27bn.
We have also been working on complementing the report with transfer agents’ information and we are proud to add this ranking to the 2017 report which we hope would further complement the overview of the market.”
Notification for reference to the reader:
PIMCO Funds Ireland plc and PIMCO Funds: Global Investors Series plc remain under Brown Brothers Harriman (BBH) as its service provider, which was the case as at 30th June 2017, with a subsequent change to State Street from July 2017 onwards. The change will be reflected in the 2018 report
From the 2015 edition, Administrator entries of State Street and IFS have been combined
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 and Jersey fund industries: the only complete reference of service providers for all funds serviced in these jurisdictions.
As at 30th June 2017, 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 ManCo/AIFM which is Irish domiciled funds only) were as follows:
Source: Monterey Insight, Ireland Fund Report.