Pat Lardner

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Presentation as part of the Dublin - Mexico Business promoting Dublin as the Gateway to Europe, eurgate, which was held May 1 and 2 2014 in Dublin.

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  • At the time, given the technology infrastructure, multiple time zone accessibility, availability of a highly educated English speaking work-force, regulated environment and an innovative capability the IFSC has grown into a leading edge global financial services centre.
  • professional investment management
    diversification
    lower costs
    convenience and flexibility
    liquidity
    transparency
    choice
  • Origins of the Industry
    IFSC
    EU Investment Funds Directive (UCITS)
    Legal and Regulatory Environment to Facilitate
    UCITS Directive transposed in 1989
    Finance Act (1989)
    Unit Trust Act (1990)
    Part XIII Companies Act (1990)
  • Scale - Assets serviced by the Irish Funds Industry in excess of EUR 2.3 trillion and over 13,300 funds with funds distributed in over 167 Countries covering 28 Languages and 23 Currencies
    No. 1 for Hedge Funds - Ireland is the worlds largest hedge fund administration centre with over 40% of global hedge fund assets and 60% of European hedge fund assets
    Major UCITS Centre - Ireland is the fastest growing UCITS centre in Europe with UCITS having grown 500% in 11 years with 30% growth in the last 2 years. UCITS account for almost 80% of Irish domiciled assets
    Global Distribution - Ireland is the European domicile of choice for cross-border fund distribution with funds distributed in over 167 countries covering 28 languages and 23 currencies. UCITS are distributed to over 70 countries globally from Ireland
    Asian Expertise - Over 9% of assets in Irish serviced funds come from Asia Pacific
  • “Para humo de mezote, ojos de tlachiquero”
    Mezote is the tall stem of the flowering maguey. The tlaquichero is the man who extracts, by sucking, the maguey’s sweet sap, called aguamiel. The aguamiel is then fermented, pulque being the result.
    In short, this Mexican saying tells us that each task requires specific qualities and abilities.
  • Pat Lardner

    1. 1. The Annual IFIA Global Investment Funds Conference 2012 Mexico – Dublin Business Conference Friday, 2nd May 2014 Plenary 2: Doing Business Together – The Keys Pat Lardner Chief Executive - Irish Funds Industry Association
    2. 2. The Annual IFIA Global Investment Funds Conference 2012 IFIA Key Roles & Objectives  Representing the Irish funds industry by:  Responding to regulatory proposals  Engaging with government and others at Irish and broader EU level  Promoting and profiling the industry at home and abroad  Supporting the development of the industry  An information resource  Expanding involvement and size of membership Page 2
    3. 3. The Annual IFIA Global Investment Funds Conference 2012 Promoting Ireland around the world Locations where Fund Industry promotion activity occurred in the last 2 years Page 3
    4. 4. The Annual IFIA Global Investment Funds Conference 2012 Elements of the International Financial Services “Cluster” The International Financial Services Centre ‘IFSC’ was established in 1987. Key Facts 500+ firms Total Direct Employment: 35,700 Indigenous firms employ c. 6,000 Firms operate in more than 20 counties Accounts for 10% of multi-national employment in Ireland Contributes 7.4% of Irish GDP Contributes approximately EUR2.1bn to the Irish Exchequer Comprises 5% of all EU 27 cross-border financial services activity Ireland is the 7th largest provider of wholesale financial services in the EU Ireland accounts for 5.35% of wholesale financial services in the EU Page 4
    5. 5. The Annual IFIA Global Investment Funds Conference 2012 Funds: Why do we exist as an industry? Individual & Institutional pool their money in which invest into generate Of many different types & objective given back to Equities, Bonds, Cash, Property, etc.. Income & Capital Page 5
    6. 6. The Annual IFIA Global Investment Funds Conference 2012 The Irish Funds Industry – Importance to Ireland  International industry based in Ireland  meeting a global need (personal savings)  exporting services (not dependent on local demand)  already internationally recognised & respected  Creates employment and revenues for the country  Fund industry performance remains strong “Ireland has been through a very tough period in the past few years; we have grounds to be optimistic now on a number of fronts but in financial services the one constant has been the funds industry. The industry continues to create employment, to showcase our talents and to enhance Ireland’s reputation as a place to do business.” Mr. Michael Noonan, Irish Minister for Finance, June 12th 2013 Page 6
    7. 7. The Annual IFIA Global Investment Funds Conference 2012 Funds: Increasingly a National Industry  85 Companies employing people  Present in 12 counties  Sample Companies Page 7
    8. 8. The Annual IFIA Global Investment Funds Conference 2012 Factors that drove growth of the industry in Ireland  development of regulated investment product structures that could be distributed across markets (the passport)  other external factors  growing investment markets  globalisation of industry & UCITS  local factors  a strong belief in having an open, transparent and regulated approach  a constantly developed legal and regulatory environment to provide product solutions and distribution opportunities  expertise and experience in servicing investment funds Page 8
    9. 9. The Annual IFIA Global Investment Funds Conference 2012 We connect Fund Managers with Investors Ireland is an international hub for globally distributed investment funds Page 9
    10. 10. The Annual IFIA Global Investment Funds Conference 2012 What do we actually do? Some or all of the following, depending on the need: assist in the establishment of an investment fund (legal & tax advisory) completing the transactions within the fund and ensuring assets are “held” safely and recorded accurately (custody & depository services) collecting the funds entitlements (income etc..) enabling investors to buy/sell their holdings and maintain the funds ownership register (fund administration & shareholder services) monitoring and reporting on compliance with the funds offering documents (trustee and compliance services) providing official books and records and paying taxes (audit and tax advisory) managing product launches, distributing fund information and handling queries (distribution services) Page 10
    11. 11. The Annual IFIA Global Investment Funds Conference 2012 Different Solutions  The industry in Ireland supports managers for both Irish domiciled funds but also in providing expert services where the fund is domiciled outside of Ireland.  Solutions are provided to managers across the full spectrum of investment strategies in a range of currencies (23) and languages (28) to target investors globally. Page 11
    12. 12. The Annual IFIA Global Investment Funds Conference 2012 UCITS (Undertakings for Collective Investment in Transferable Securities)  Established via European Union Directive 1985/611/EEC - implemented by 1st October 1989  Principal advantage of UCITS is a “passport” which allows the fund (once authorised in one member state) to be sold in another EU member state  Funded by open offer to the public  Characteristics: emphasis on governance, transparency and risk management  Redeemable on demand  Investment restrictions (listed eligible assets as well as diversification rules)  Oversight and safekeeping by an independent depositary Page 12
    13. 13. The Annual IFIA Global Investment Funds Conference 2012 Global Distribution of Irish UCITS Source: Lipper, PwC & IFIA, 2011 Page 13
    14. 14. The Annual IFIA Global Investment Funds Conference 2012 UCITS Distribution Trends Over 76,000 fund registrations worldwide Suitable for Institutional & retail investors  Private placement or European passport  Distributed in 70 countries globally  Up to 25% of AUM sourced outside Europe  Up to 17% of AUM sourced from Asia  Global banks, local brokers / financial advisors key channels for distribution  UCITS make up 70% of EU investment funds market  Irish domiciled UCITS comprise 40% of UCITS market Source: Lipper for Investment Managers (LIM), PwC analysis – November 2013 Page 14
    15. 15. The Annual IFIA Global Investment Funds Conference 2012 Alternative Investment Fund Managers Directive (AIFMD)
    16. 16. The Annual IFIA Global Investment Funds Conference 2012 The Irish Funds Industry today Page 16
    17. 17. The Annual IFIA Global Investment Funds Conference 2012 Total Assets of Irish Administered Funds Source: Central Bank of Ireland Page 17
    18. 18. The Annual IFIA Global Investment Funds Conference 2012 Growth in Irish Domiciled UCITS Page 18Source: Central Bank of Ireland
    19. 19. The Annual IFIA Global Investment Funds Conference 2012 Growth in Irish domiciled Non UCITS Page 19Source: Central Bank of Ireland
    20. 20. The Annual IFIA Global Investment Funds Conference 2012 Irish Domiciled Funds (breakdown by type) Source: Central Bank of Ireland Page 20
    21. 21. The Annual IFIA Global Investment Funds Conference 2012 Developed areas of expertise Source: Blackrock ETF Landscape & IFIA Ireland as a Domicile for European ETFs (Q4 2012) Irish Administered Alternative Investment Funds Source: HFM Week, IFIA Q4 2012 Page 21
    22. 22. The Annual IFIA Global Investment Funds Conference 2012 Relevance for Mexican Investors and Investment Managers  For investors  recent experience has reinforced the value of operating with partners in well regulated and reputable markets  agenda of regulatory change will not end any time soon  For Asset managers  the regulatory/product frameworks implicit in UCITS and AIFMD have and can be a benefit  innovative/flexible partners more crucial than ever  Ireland already successful across a range of funds & structures  Our capabilities are complimentary to those of the needs of the investors and managers we serve Page 22
    23. 23. The Annual IFIA Global Investment Funds Conference 2012 International Hub for Globally Distributed Investment Funds + Unrivalled Experience and Expertise in the Widest Range of Fund Structures Conclusion Page 23
    24. 24. The Annual IFIA Global Investment Funds Conference 2012 Staying Connected IFIA Website: http://www.irishfunds.ie/ Linked In: http://www.linkedin.com/company/irish-funds-industry-association Page 24
    25. 25. The Annual IFIA Global Investment Funds Conference 2012 Thank you
    26. 26. The Annual IFIA Global Investment Funds Conference 2012 Mexico – Dublin Business Conference Friday, 2nd May 2014 Plenary 2: Doing Business Together – The Keys Pat Lardner Chief Executive - Irish Funds Industry Association

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