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irishfunds.ie

24 October 2018

Irish Funds Greenwich Seminar 2018

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Brian Forrester

Chairperson, Irish Funds

Partner, Deloitte

Welcome Address

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Industry Update and Key Developments

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Who/what we are….

• industry association for all aspects of regulated cross border funds in Ireland

o representative function

o promotional function

• 137 member firms, located both in and outside Ireland

• key link to the authorities & policy makers in Ireland and beyond

• the industry’s representative in Europe and globally

• a platform for collaboration, information sharing and driving outcomes & improvement

• A member of EFAMA and IIFA

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The Irish funds industry: a snapshot

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A Global Funds Centre…

Source: Monterey Ireland Report 2017

• 917 Fund managers from 53

countries use Ireland to

domicile or service their

investment funds

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With Global Distribution

Source: Lipper IM

• Data from the Central Bank of Ireland shows Irish domiciled funds have investors from

90+ countries around the world

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Total Assets Under Administration –

Split between Irish & Non Irish Funds

Source: All data sourced from Central Bank of Ireland

989

1,271

2,052 1,9462,079

2,515 2,441

2,901

3,754

4,097 4,1324,310

5,289

5,785

689959

1,188899 1,078 1,288 1,365

1,6191,854 2,020 2,062 2,194

2,875 2,910

300

313

864 1,0471,001 1,227 1,075

1,282

1,900 2,077 2,0712,116

2,414

2,875

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 June-18

US

D B

illi

on

Total Domiciled and Non-Domiciled

Assets Under Administration

Total Non Domiciled Total Domiciled

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Irish Domiciled Assets

• UCITS represent 75% of Irish

Domiciled Assets

• 88 UCITS Man Cos

• 164 AIFMs Registered or Authorised

• 695 AIFMs operating in Ireland on

cross border basis

• 467 ICAVs established (since 18 March

2015)

All data sourced from Central Bank of Ireland (Oct

2018)

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Growth of Largest European Fund Domiciles

Source: EFAMA Statistics

0%

20%

40%

60%

80%

100%

120%

140%

2011 2012 2013 2014 2015 2016 2017

% G

row

th

2011 2012 2013 2014 2015 2016 2017

Europe 0% 13% 23% 42% 58% 78% 97%

Luxembourg 0% 14% 25% 48% 67% 77% 98%

Ireland 0% 16% 27% 57% 80% 98% 126%

France 0% 9% 10% 14% 21% 29% 37%

Germany 0% 13% 24% 40% 53% 66% 80%

UK 0% 17% 35% 59% 79% 77% 99%

Europe Luxembourg Ireland France Germany UK

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Irish Domiciled Funds – Net Sales

• Net sales for 2017 were more than double the total for 2016

• Net sales into Irish domiciled funds accounts for 30% of the

European total

Source: All data sourced from Central Bank of Ireland

113

182

126153

339

0

50

100

150

200

250

300

350

400

2013 2014 2015 2016 2017

US

D

Billi

on

s

Net Sales - Total Domiciled Funds

Net Sales - Total Domiciled Funds

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Brexit - three interdependent themes

Distribution

Management

Models

(‘Delegation’)

Growth

OVER 2,700 IRISH

FUNDS SOLD TO UK

INVESTORS

$636bn

IN IRISH FUND ASSETS

MANAGED BY 175+ UK

FIRMS IN IRELAND

Continuity in UK investor

access to Irish funds

Continuity in

UK firm

management

of Irish funds

Increase Ireland’s growth

trajectory as an

international asset

management centre

SOURCE: Lipper IM Dec 2017

Monterey Ireland Fund Report 2017

Current context Target outcome

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Other developments……….

• Updating of Ireland’s Investment Limited Partnership Legislation

• On the parliamentary schedule as a piece of priority legislation for the current term.

• Will provide additional scope for private equity and real asset funds.

• Reform of the European Supervisory Authorities (ESAs)

• Industry engaging intensively to ensure delegation of portfolio management continues in current form

and under scrutiny of national regulators without additional oversight / approval from ESMA

• Exchange Traded Funds (ETF)

• CBI in September published their response to ETF Discussion Paper with various policy changes

flagged

• EU Cross Border Distribution

• Industry continues to input on this engagement to increase efficiency of EU cross border distribution

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Other developments……….

• Pan European Personal Pension Plan (PEPP)

• Industry white paper published on PEPP and prepared case studies which assisted progression through

ECON committee. Now progressing through trilogue with more favourable pay-out provisions.

• AML

• Industry have engaged in consultation on the new 4th AML Directive which has been published and is

due to be enacted before the end of 2018 and will engage with the CBI regarding new AML Guidance

Notes

• Tax Transparency

• OECD has awarded Ireland the highest international rating on tax transparency and exchange of

information.

• Industry in discussion with authorities on implementation of Mandatory Disclosure Regime

• Money Market Fund Regulation (MMFR)

• Industry has been very actively engaging on the issue of reverse distribution mechanisms ahead of the

new MMFR coming into effect in Jan 2019

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Conclusion

EU Member & Strategically Positioned

+

International Hub for Globally Distributed Investment Funds

+

Unrivalled Experience and Expertise & the Widest Range of Fund Structures

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Bruce McGuire

Founder & President, CTHFA

CTHFA Address

Moderator:

Panellists:

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Panel Discussion: Options for Accessing

European Markets

Peter Sanchez, Northern Trust Hedge Fund Services

Kimberley West, AMX

Rob Harrison, Equity Trustees

Ramona Heine, Heine & Kim Fiduciary Partners

Iain Ferguson, McCann Fitzgerald

Moderator:

Panellists:

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Panel Discussion: Fund Distribution –

Harmonisation and Regulation Across

Europe

Max Rijkenberg, PAAMCO

Michelle Ridge, Matheson

Rob Drake, Bury Street Capital

Scott Merkel, Lyxor Asset Management

Moderator:

Panellists:

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Panel Discussion: Brexit – Developments

and Implications

Kieran Fox, Irish Funds

Des Fullam, Carne

Mark Browne, Dechert

David Walsh, Dillon Eustace

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Kieran Fox, Irish Funds

Closing Remarks

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