Irish Funds Annual Global Funds Conference 2019 23 May 2019 - PowerPoint PPT Presentation

Irish Funds Annual Global Funds Conference 2019 23 May 2019 irishfunds.ie 2

Breakfast kindly sponsored by: irishfunds.ie

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MC Laura Wadding Director, Deloitte irishfunds.ie

Wi-Fi Access Wi-Fi SSID: IrishFunds Password: BBH@2019 irishfunds.ie

Audience Interaction www.sli.do #IFConf19 irishfunds.ie

Opening Address Yvonne Connolly Chairperson, Irish Funds CEO, Carne Group irishfunds.ie

Economic Impact & Strategic Direction of the Industry Pat Lardner Chief Executive, Irish Funds irishfunds.ie

Economic Impact Study – Background & Approach • Why do it? • Why now? • How best to do it? • Who? irishfunds.ie Quantitative aspects based on 31 December 2018 data 12

Key Findings irishfunds.ie Source: Indecon research among Irish funds industry participants 13

Key Findings – Regional Employment irishfunds.ie Source: Indecon research among Irish funds industry participants 14

Other Findings Wider Impacts of Industry on Irish Economy: Participant’s Views irishfunds.ie Source: Indecon research among Irish funds industry participants 15

Other Findings Factors Impacting Growth over the next 5 Years – Participant’s Views on Relative Impacts irishfunds.ie Source: Indecon research among Irish funds industry participants 16

Future Scenarios (Indicative) Indicative Scenarios for Future Increase in Economic Impacts Employment Impact Note: Scenarios based on average of growth rates predicted by industry participants, excluding high outliers. Central scenario assumes overall growth of 23.6%, or 4.3% per annum (compound irishfunds.ie average). Low growth scenario assumes growth of 11% over period, or 2.1% per annum, while high growth scenario assumes growth of 36.3% between 2018-2023, or 6.4% per annum. 17

Future Scenarios (Indicative) Indicative Scenarios for Future Increase in Economic Impacts Exchequer Contribution/Tax Payments (€ Million) Note: Scenarios based on average of growth rates predicted by industry participants, excluding high outliers. Central scenario assumes overall growth of 23.6%, or 4.3% per annum (compound irishfunds.ie average). Low growth scenario assumes growth of 11% over period, or 2.1% per annum, while high growth scenario assumes growth of 36.3% between 2018-2023, or 6.4% per annum. 18

Links to our advocacy work • Regional events • Local media out-reach – we are active in communities around the country • Supporting our engagement with local parliamentarians and MEP Candidates • Strong background for our briefing of MEPs and Perm Rep in Brussels irishfunds.ie 19

Unchartered waters ahead & some tipping points • Industry composition and diverse strengths • Renewal of the EU Institutions • Policy environment & advocacy • Changes in the neighbourhood shouldn’t weaken the community irishfunds.ie 20

Government Address Michael D’Arcy Minister of State at the Department of Finance irishfunds.ie

Panel Discussion: Business Leaders Andy O’Callaghan, PwC (Moderator) Victoria Brown, Aberdeen Standard Investments David Greco, FIL Fund Management Angela Billick, John Hancock Investments Glenn Thorpe, Goldman Sachs Asset Management irishfunds.ie

Address from the Central Bank of Ireland Ed Sibley Deputy Governor, Prudential Regulation, Central Bank of Ireland irishfunds.ie

Panel Discussion: The Future of Regulation Mary O’Dea, Institute of Banking (Moderator) Evert Van Walsum, ESMA Nick Miller, FCA Tanguy Van De Werve, EFAMA Martina Kelly, Central Bank of Ireland irishfunds.ie

Coffee break kindly sponsored by: irishfunds.ie

Keynote Address Richard Susskind, OBE Author of “The Future of the Professions: How Technology Will Transform the Work of Human Experts” irishfunds.ie

Panel Discussion: The Future of Work Neil Sands, Fox Design (Moderator) Dr Susan McKeever, Technological University Dublin, School of Computer Science Richard Susskind OBE, Author Marie Dzanis, Northern Trust Asset Management Colin Meagle , Continuum Group irishfunds.ie

Keynote Address Andrew McDowell Vice President, European Investment Bank irishfunds.ie

Lunch break kindly sponsored by: irishfunds.ie

Keynote Address Peter Branner CIO, APG Asset Management irishfunds.ie

Breakout Parallel Panel Discussions Repeated: 14:40 & 15:20 • FinTech and Artificial Intelligence o Liffey Hall 1 • Cybersecurity Distribution o Liffey Meeting Room 2 • ESG Investing o Liffey A – Main Seminar Room FinTech & AI • The Future of Fund Distribution ESG Investing o Liffey Hall 2 Cybersecurity irishfunds.ie

Panel Discussion: ESG Investing Rachel Turner, BNY Mellon (Moderator) Will Oulton, First State Investments Elizabeth Gilliam, Invesco Meaghan Muldoon, BlackRock Jaakko Kooroshy, FTSE Russell irishfunds.ie

Panel Discussion: FinTech and Artificial Intelligence Kate Webber, Calastone (Moderator) Lior Yogev, FundGuard Olivia Vinden, Alpha FMC Rachel Howick, Citi Miroslav Petrov, Fortia Financial Solutions irishfunds.ie

Panel Discussion: The Future of Fund Distribution Fabrizio Zumbo, Cerulli Associates (Moderator) Paul Price, Morgan Stanley Investment Management Lory Kehoe, ConsenSys Henning Swabey, Calastone Lorraine Dunbar, JP Morgan Securities Services irishfunds.ie

Drivers of Change irishfunds.ie

New Rules, New Costs, New Challenges A “new” regulatory framework is adding distress to asset managers’ economics MiFID II: Expected Additional Costs Potential Outcomes EUR 8.5m 1 Greater transparency USD Amount Man Group set aside in 15m order to comply with MiFID II 2 Fee compression GBP Amount Jupiter would incur in 5m additional expenses for research 3 Consolidation How much Italian private banks are 25% expected to increase the cost of research Sources: Various industry sources, Cerulli Associates irishfunds.ie

Technology Developments Are Here… But asset managers are approaching innovation opportunistically Number of Employees Dealing with Asset Asset Managers’ Approaches to Implementing Managers' Big Data Analytics, 2018 Innovation, 2019 More than six people 8.3% None — we do not employ One to three people for big people data analytics 58.3% 33.3% Sources: Cerulli Associates irishfunds.ie

Technology Developments Are Here… But asset managers show a low level of adoption of emerging technologies Asset Managers’ Level of Adoption of Selected Digital Technologies, 2019 Sources: Cerulli Associates irishfunds.ie

Investors’ Preferences Are Shifting The assets of ETFs domiciled in Europe rose at a CAGR of 16% from 2012 to 2018 European Exchange-Traded Fund Assets by Domicile, 2012 –2018 (€ billions) Sources: Broadridge, Cerulli Associates irishfunds.ie

Investors’ Preferences Are Shifting ETFs and smart beta are expected to grow Anticipated Growth Rate of ETFs and Smart Beta Assets in Europe, 2018 Sources: Cerulli Associates irishfunds.ie

What will the Future Look Like? irishfunds.ie

Panel Discussion: Cybersecurity Hugh Callaghan, EY (Moderator) Nicola O’Connor, AIB Michael Gubbins, Garda National Cyber Crime Bureau Joern Dobberstein, Central Bank of Ireland irishfunds.ie

Coffee break kindly sponsored by: irishfunds.ie

Panel Discussion: Brexit Deborah Hutton, Eversheds Sutherland (Moderator) Prof. Federico Fabbrini, Brexit Institute DCU Senator Neale Richmond, Seanad Eireann Chris Cummings, The Investment Association Eve Finn, LGIM Ireland irishfunds.ie

Closing Remarks Pat Lardner Chief Executive, Irish Funds irishfunds.ie

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See you next year! Annual Global Funds Conference – Thursday 21 May 2020

Drinks Reception kindly sponsored by: irishfunds.ie

Irish Funds Annual Global Funds Conference 2019 23 May 2019 irishfunds.ie 52

Gala Dinner kindly sponsored by: irishfunds.ie