“Global assets under management reached $84.9 trillion in 2016
and will therefore almost double to hit $145.4 trillion in 2025.”
As the world’s population continues to live longer, the future looks bright for the Irish Funds Industry, namely the global asset and wealth management sectors. With over 880 fund managers from 50+ countries having assets administered in Ireland and 17 of the top 20 global asset managers having Irish domiciled funds, this would indicate that therefore the future also looks bright for the funds industry in Ireland.
For the past 25 years the Irish Funds Industry has been an international leader in this space, with an excellent international reputation for efficient regulation and government policy and regulation that protects investors and encourages product development. There are over 14,000 professionals working exclusively in fund servicing and we look set to be net beneficiaries of Brexit, notwithstanding the housing crisis that threatens to reduce the positive effects.
The Irish Funds Industry is the largest hedge fund administration centre in the world and over 40% of global hedge fund assets are serviced in Ireland. Private Equity and Real Estate funds are becoming an increasingly popular choice among investors and several of the multi-nationals have elected to make Ireland their prime location in this area showing that we are well place to adapt and continue to have tremendous success in the industry.
Looking to the future, technological changes and improvements such as Blockchain will alter and change the industry as we know it, with many of the jobs in the future in the industry Ireland not yet having been created, and with more of the traditional roles continuing to be off-shored to cheaper cost centres internationally. Most positively, many of the firms at the forefront of these new advancements in technology in Fund Administration are indigenous Irish firms, taking advantage of the strong hands on knowledge and experience that they have built up over the last quarter of a century working in these multi-national administrators. The challenge for the Irish industry will be to continue to up-skill and train the workforce here to adapt to these changes.