Irish funds industry at a glance: 2016 begins with poor performance

By: Colin Keane

Business meeting

So far, 2016 has proved mixed for the Irish funds industry. Total assets under management were down by 4% in Q1, with both UCITS funds and QIAIFs experiencing a fall. The number of funds themselves increased by a small margin, suggesting that average fund performance is worse than in 2015, when there were increases in both performance and number of funds. It seems the perceived pain of regulation has not prevented the formation of Irish funds, but the traditional alternatives space is struggling to bring positive returns.

The data below is provided by the IFIA:

UCITS Funds – Key Facts

YTD asset growth – down 4 percent

Net assets – $1,386bn, down from $1,447bn at 2015 year-end

Number of funds – 3,901, up from 3,864 at 2015 year-end

 

QIAIFs – Key Facts

YTD asset growth – down 2 percent

Net assets – $363bn, down from $369bn at 2015 year-end

Number of funds – 1,961 same as 1,961 at 2015 year-end

 

Total Irish Domiciled Funds – Key Facts

YTD asset growth – down 4 percent

Net assets – $1,830bn, down from $1,898bn at 2015 year-end

Number of funds – 6,242, up from 6,201 at 2015 year-end

 

What will the rest of 2016 hold?

While the number of UCITS and QIAIFs remains strong, poor performance and global political uncertainty (e.g. in the UK and the US) concern investors.

On a more positive note, the uptake of the ICAV vehicle has been strong, with almost all new vehicles adopting the structure and its benefits. There has also been success in the unregulated vehicle space, and, hopefully soon, in the private equity (PE) space. Once the new ILP legislation is passed, the PE sector will show more interest in Ireland as a domicile. As an important new component for the Irish funds industry, this could be a growth area in the coming years, with investors and managers looking at alternative ways to garner returns in a period of poor hedge fund performance.

SS&C has been a market-leading provider of fund administration services in the Irish-domiciled market since 2008, servicing QIAIF and UCITS through a combination of proprietary technology and a team of over 200 highly-skilled experts. The recent acquisition of Citi Alternative Investor services has increased the number of funds, clients, employees, and the profile of our business significantly. With more than 100 funds, totaling $20bn+, SS&C continues to grow significantly in the Irish sector. For more information contact solution@sscinc.com.

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