At its Global Funds Conference, Irish Funds, the voice of the funds and asset management industry, reported increases in direct employment (7.9 percent), exchequer contribution (+9.2 percent) and general business activity across the sector. It also reported an increase in assets in Irish domiciled funds of 5 percent over the last quarter, bringing the total amount invested in Irish domiciled funds to an all-time high of €3.5 trillion according to the latest data from the Central Bank of Ireland (CBI).
To assess the ongoing performance and contribution of industry throughout the pandemic, Irish Funds commissioned Indecon International Economic Consultants to conduct a second Economic Impact Assessment of the industry at the end of 2020. The continuing evolution and growth of the industry has confirmed the sector as a key and consistent economic contributor – providing direct employment for over 17,273 people (34,357 including indirect employment) based in every county in Ireland and contributing €914 million in direct taxes to the Irish Exchequer.
The Economic Impact also reports €7.5 billion in direct economic impact (€12.1bn including indirect impact) was generated by the investment funds and asset management sector directly in the year 2020, an increase of 6 percent compared to 2018.
A key finding of the report is the continued regionalization and broadening national presence of the Irish investment funds and asset management industry over the last 2-3 years, with almost half of the counties in Ireland now having at least one industry office, and an expansion of almost 40 percent in the number of office locations outside of Dublin.
The increase in domestic economic contribution is linked to increased activity and business volumes. Net sales into Irish domiciled funds for Q1 2021 were €40.5 billion. This comes on the back of €235 bn of net sales in 2020, more than any other fund location in Europe.
Irish Funds Chief Executive, Pat Lardner said in a statement: “By enabling global savings, supporting greater investment into and across the EU, and delivering tangible economic benefits to communities across Ireland, the funds and asset management industry plays a pivotal role in showcasing what Ireland has to offer.
“Looking ahead, the Indecon study indicates that the fund and asset management sector in Ireland can grow by 25-30 percent over the next five years. To achieve this the entire ecosystem in Ireland must transform, innovate and challenge ourselves in delivering solutions, in order to maintain an environment and approach that remains world-class. By doing this we can continue to effectively contribute to the national economy, which is essential as we emerge from the pandemic and prioritise sustainable growth.”