Irish funds growth: Will the trend continue?

By: Colin Keane

istock_000062136484_large

After a poor first quarter, the Irish funds industry grew in Q2. Total assets under management were up by 4.75% versus Q1 and up 1% YTD; UCITS and QIAIF assets increased significantly. The number of funds also increased slightly, suggesting that average fund performance is up. Having fallen badly in Q1, the statistics on UCITS funds are similar to those from the end of 2015, with the Q2 gains offsetting the Q1 losses. YTD, QIAIFs have grown by 4% and remain a large growth area due to the success of the ICAV and the increase in private equity-style investments.

Key Facts                                                                                                             

UCITS funds

YTD asset growth: remained the same

Net assets: up to $1,447bn from $1,386bn at the end of Q1 2016

Number of funds: up to 3,929 from 3,901 at the end of Q1 2016

QIAIFs

YTD asset growth: up 4%

Net assets: up to $385bn from $363bn at the end of Q1 2016

Number of funds: up to 1,965 from 1,961 at the end of Q1 2016

Total Irish domiciled funds

YTD asset growth: up 1%

Net assets: up to $1,917bn from $1,830bn at the end of Q1 2016

Number of funds: up to 6,266 from 6,242 at the end of Q1 2016

 

The rebound eases fears of continued poor performance and the increase in the number of funds highlights Ireland’s continued popularity as a fund domicile. Nonetheless, uncertainty following the US presidential election, lack of clarity over the tax implications of S110, and the UK’s intention to invoke Article 50 could all continue to impact the market.

The uptake of the ICAV vehicle remains strong, and there has been success in the unregulated vehicle and private equity space. There are signs that PE managers do not consider the lack of viable LP vehicle an obstacle. Once legislation is passed, however, it will be expected to facilitate structures more commonly seen in other jurisdictions and provide another compelling reason for managers and investors to choose Ireland in their PE ventures.

With best-of-breed proprietary technology and a team of more than 200 highly skilled experts, SS&C is a market-leading provider of fund administration services in the Irish-domiciled market. Our recent acquisition of Citi Alternative Investor services significantly increases our profile and our number of funds, clients, and employees. With more than 100 funds, totaling $20bn+, SS&C continues to grow in the Irish sector. For more information, contact solution@sscinc.com or akirkpatrick@sscinc.com.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s