Irish Funds Munich Seminar 28 November 2017 2 irishfunds.ie - PowerPoint PPT Presentation

Irish Funds Munich Seminar 28 November 2017 2 irishfunds.ie

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Welcome Address Kieran Fox Director of Business Development, Irish Funds 5 irishfunds.ie

Who we are…. • industry association for all aspects of regulated cross border investment funds in Ireland • 125 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 6 irishfunds.ie

Who we are…. 7 irishfunds.ie

Total Assets under Administration - split between Irish domiciled & Non-Irish funds Total Domiciled and Non-Domiciled Assets Under Administration 4,500 4,273 4,095 4,000 3,806 3,375 3,500 3,000 2,722 1,976 EUR Billion 2,011 2,500 1,907 2,199 1,711 1,886 1,883 2,000 1,378 1,443 1,398 1,394 1,500 972 831 965 2,298 919 752 2,085 1,000 838 587 1,899 695 1,664 636 237 254 1,344 1,227 500 1,055 202 964 807 728 748 646 584 434 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Sep-17 Total Non Domiciled Total Domiciled Source: Central Bank of Ireland 8 irishfunds.ie

Irish Domiciled Assets • UCITS represent 75% of Irish Domiciled Assets • 86 UCITS Man Cos • 160 AIFMs Registered or Authorised • 597 AIFMs operating in Ireland on cross border basis • 377 ICAVs established (since 18 March 2015) Source: Central Bank of Ireland Nov 2017 9 irishfunds.ie

Ireland’s Relationship with European Investment Fund Landscape • € 13 trillion in assets • € 8 trillion UCITS • € 5 trillion Alternative Investment Funds (AIFs) • € 1 trillion of net inflows into UCITS over last 3 years • € 463 billion net inflows into European funds 2016 (>30% of which went to Irish domiciled funds) 10 10 irishfunds.ie

Growth of Largest European Fund Domiciles 250 198 200 180 % Growth 157 150 127 116 100 50 - 2012 2013 2014 2015 2016 Europe 113 123 142 158 178 Luxembourg 114 125 148 167 177 Ireland 116 127 157 180 198 France 109 110 114 121 129 Germany 113 124 140 153 166 UK 117 135 159 179 177 Source: EFAMA Statistics 11 11 irishfunds.ie

Irish Funds: Passport to Europe & Beyond UCITS funds & AIFMs benefit from an EU wide passport and can be sold in any other EEA member state without need for additional authorisation Global Distribution of Irish Funds: 70 countries Top 10 countries where Irish Funds registered for sale 1. UK 6. Austria 2. Germany 7. Luxembourg 3. France 8. Sweden 4. Switzerland 9. Italy 5. Netherlands 10. Spain 12 12 irishfunds.ie

Irish Funds – Maximising Distribution 13 13 irishfunds.ie

Irish Domiciled Funds – Net Sales Net Sales - Total Domiciled Funds 250,000 200,000 EUR Mn 150,000 228,257 100,000 139,416 135,668 114,706 50,000 98,463 85,465 0 2012 2013 2014 2015 2016 YTD - Sept 2017 Net Sales - Total Domiciled Funds Net sales for Net Sales into Irish funds by type € Bn YTD Sept 2017 Equity Funds have already 200.0 surpassed the Bond Funds total for 2016 (by > € 88bn) – Balanced Funds 100.0 which itself was Money Market a record year Funds AIF - Dec-13 Dec-14 Dec-15 Dec-16 YTD Sept 2017 14 14 irishfunds.ie

ETFs - An Irish Success Ireland as a Net Sales into All European Domicile for ETFs 2016 € Bn European ETFs Rest of Total Assets 3 Bn Europe of European Ireland Ireland 7% 248 ETFs - € Bn 310 € bn 44% Rest of 56% Europe Bn 41 93% Source: Irish Funds, June 2017 15 15 irishfunds.ie

Looking Ahead - Technology 16 16 irishfunds.ie

Looking Ahead – Brexit Three interdependent themes Current context Target outcome Continuity in UK investor access to EU/Irish funds OVER 2,000 IRISH FUNDS SOLD TO UK INVESTORS 1 Management Distribution Models (‘Delegation’) Continuity in UK firm Growth managemen t of Irish funds € 613 bn 2 IN IRISH FUND ASSETS MANAGED BY 170+ UK FIRMS IN IRELAND 2 Increase Ireland’s growth trajectory as an SOURCE: 1-Lipper IM Dec 2015 international asset 2-Monterrey Ireland Fund Report 2016 management centre 17 17 irishfunds.ie

International asset management centre Re- affirm Ireland’s attractiveness as an Opportunity international asset management centre • Predictability / efficiency of Growth regulatory process • 12.5% corporate tax rate Benefits • Common law system ‘The • Only English-speaking Basics’ country in the Eurozone • Less expensive than Zurich, Paris & Luxembourg1 • 800+ investment firms active in Ireland 4 • Increased presence of front office activities Asset • 18 of the top 20 global AMs have Irish funds Manager • € 4trn total AuA, € 300bn managed from Ireland 2 Activity • AM counterparties already in transit from UK • Space for 100K new employees by 2020, 100K new houses 3 Infra- • Leading global tech centre & fintech location structur • London-Dublin: Most flight options in Europe NOTES: e • 35K+ employed in international financial 1. Source PwC 2. http://www.iaim.ie/why-ireland (STEM = Science, Technology, Engineering & services in Ireland, 14K in funds industry Mathematics) & http://www.hea.ie/sites/default/files/awards_- • 130K degree-level graduates across business, _all_undergraduate_by_level_and_field.xlsx law and STEM w/ 20K new grads p.a. 2 3. IFS 2020 Action Plan 2017 (http://finance.gov.ie) & IDA Ireland 4. MiFID firms, UCITS ManCos, Irish AIFMs & Non-Irish AIFMs Provide UK managers with options to support the Solution establishment of a physical presence in Ireland 18 18 irishfunds.ie

Panel Discussion Product Discussion including ETFs, Private Equity, Real Assets Moderator : Paul Heffernan, HSBC Panellists : Aoife O’Connor, PwC Kieran Fox, Irish Funds Holger Schmid , Baader Bank 19 19 irishfunds.ie

Ireland as a Domicile – Comparative Aspects Mark Browne Partner, Dechert 20 20 irishfunds.ie

Ireland: Comparative Aspects Ireland and Luxembourg • Range of Legal Vehicles • Fund Structures • Cost • Timing • Client preference • Tax • Size 21 21 irishfunds.ie

Ireland: Comparative Aspects Ireland and Luxembourg • Accessibility • Accessibility of Regulator • Transparency and certainty • Staffing • Expertise 22 22 irishfunds.ie

Ireland: Comparative Aspects Ireland and Cayman • Liability standard • Directors liability • Voting Rights • Liquidity • Independence • Investor preference 23 23 irishfunds.ie

Listing investment funds- update from the Irish Stock Exchange John Collins International Primary Markets, Irish Stock Exchange 24 24 irishfunds.ie

The Irish Stock Exchange: The European Gateway Exchange 25 25 irishfunds.ie

The Irish Stock Exchange: A Full Service Stock Exchange 26 26 irishfunds.ie

The Irish Stock Exchange: A Global Leading International Business Source: World Federation of Exchanges September 2017 27 27 irishfunds.ie

The Irish Stock Exchange: Enabling Global Issuers to Access Investors Source: Irish Stock Exchange September 2017 28 28 irishfunds.ie

The Irish Stock Exchange: Providing Issuer Choice 29 29 irishfunds.ie

Our Fund Markets: Why Choose the Irish Stock Exchange? 30 30 irishfunds.ie

Irish Stock Exchange Fund Statistics 1,448 Funds 5,221 78% Irish 22% Offshore 219 ISE Funds and sub- Securites funds & Sub- funds & sub- ETFs funds listed listed in total funds funds 4% 23% Ireland Manager Locations UK 2% USA 40% 6% Switzerland Channel Islands Other 24% Source: Irish Stock Exchange September 2017 31 31 irishfunds.ie

Irish Stock Exchange Fund Statistics Cont. 4% 3% 2% 5% Ireland Cayman Islands 8% Domicile Jersey of funds Bermuda Guernsey Other 78% Source: Irish Stock Exchange September 2017 32 32 irishfunds.ie

Managers with Irish Stock Exchange Listed Funds 33 33 irishfunds.ie

Our Fund Markets Source: World Federation of Exchanges (WFE) 34 34 irishfunds.ie

3 P’s for listing funds on the Irish Stock Exchange Pragmatism Process Price 35 35 irishfunds.ie

Panel Discussion Substance and Regulation in Ireland Moderator : Adrian Mulryan, Arthur Cox Panellists : Ross Thomson, FundRock Kate Clarke, KPMG Stephan Grimm, LIS 36 36 irishfunds.ie

Fund Structuring Options in Ireland for German investors – German Investment Act 2018 Hans Stamm Partner, Dechert 37 37 irishfunds.ie

Overview of Different German Fund Taxation Regimes Undertakings for Collective Special Investment in Transferable Alternative Investment Funds (AIF) Vehicles Securities (UCITS) Specialized Investment (Mutual) Investment Funds Funds Partnerships “ Investmentfonds ” “ Spezial-Investmentfonds ” Intransparent fund Semi-transparent fund Fully tax transparent taxation regime for private taxation regime for taxation regime and institutional investors institutional investors 38 | 26 October 2017 German Investment Tax Reform 2018: Impact on Non-German Investment Funds and their German Investors