Pat Lardner

The Annual IFIA Global Investment Funds Conference 2012

Mexico – Dublin Business Conference

Friday, 2nd May 2014

Plenary 2: Doing Business Together – The Keys

Pat LardnerChief Executive - Irish Funds Industry Association


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


Promoting Ireland around the world

Locations where Fund Industry promotion activity occurred in the last 2 years


Elements of the InternationalFinancial Services “Cluster”

The International Financial Services Centre ‘IFSC’ was established in 1987.

Key Facts500+ firmsTotal Direct Employment: 35,700Indigenous firms employ c. 6,000Firms operate in more than 20 counties Accounts for 10% of multi-national employment in IrelandContributes 7.4% of Irish GDPContributes approximately EUR2.1bn to the Irish ExchequerComprises 5% of all EU 27 cross-border financial services activityIreland is the 7th largest provider of wholesale financial services in the EU Ireland accounts for 5.35% of wholesale financial services in the EU


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


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


Funds: Increasingly a National Industry

85 Companies employing people

Present in 12 counties

Sample Companies


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


We connect Fund Managers with Investors

Ireland is an international hub for globally distributed investment funds

Ireland is a partner to the International Investment Funds Industry


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)


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.


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


Global Distribution of Irish UCITS

Source: Lipper, PwC & IFIA, 2011


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


Alternative Investment Fund Managers Directive (AIFMD)


The Irish Funds Industry today


Total Assets of Irish Administered Funds

Source: Central Bank of Ireland


Growth in Irish Domiciled UCITS



Growth in Irish domiciled Non UCITS



Irish Domiciled Funds(breakdown by type)



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


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


International Hub for Globally Distributed Investment Funds

+

Unrivalled Experience and Expertise in the Widest Range of Fund Structures

Conclusion


Staying Connected

IFIA Website: http://www.irishfunds.ie/

Linked In: http://www.linkedin.com/company/irish-funds-industry-association


Thank you


Mexico – Dublin Business Conference

Friday, 2nd May 2014

Plenary 2: Doing Business Together – The Keys

Pat LardnerChief Executive - Irish Funds Industry Association

Pat Lardner

Business

Transcript of Pat Lardner