67% of global asset managers plan to increase their presence in Ireland or relocate key activities to Ireland in the year ahead, according to participants of a recent webcast of industry professionals hosted by PwC. Attended by over 150 global and Irish leading fund managers in 14 countries, the PwC-hosted webcast “Ireland as a leading global asset management centre” provided some essential insights into repositioning the industry for a post-Brexit world and what this may mean for Ireland as a leading global asset management centre.
Hosting the webcast, Andrew O’Callaghan, PwC Asset Management Partner, said: “The survey result highlights that there’s significant growth opportunities for asset management and fintech firms in Ireland. The advantages are clear: highly talented individuals having deep industry knowledge, well established regional hubs, continued access to the EU market and a similar common law jurisdiction as the UK with the benefits of the Common Travel Area between the two jurisdictions.
“And with over 170 Asset Management and FinTech firms having already chosen Ireland over the last two years, Ireland has a significant opportunity to be a leading asset management centre, particularly for high value funds and FinTech activity, in a post-Brexit world. Overall,with the correct focus, we anticipate an increased job potential for Ireland in asset management and related financial technology and payments sectors to be in excess of 6,000 over the next 18 months.”
‘Terrific future but Ireland needs to attract high value portfolio management activity’, says leading global fund manager
These growth ambitions were reiterated by leading global asset manager, Martin Gilbert, co-founder and former Chief Executive of Aberdeen Asset Management. Addressing the event, he said: “Ireland has so many advantages - including very talented people with language skills - and has a terrific future as a world class centre for funds management.
He commented that “While Ireland to date has done very well as a fund administration and processing centre, it needs to work out how to attract asset managers to locate here, so funds can be managed directly from Ireland.” According to Gilbert, if it does that then “Ireland will be one of the biggest beneficiaries from Brexit.”
“At the same time, further consolidation in the industry is expected. And with expected growth in personal savings and the move to private credit, the industry will play a key role in refinancing the global economy following the pandemic, alleviating the pressure on government debt. All of this will present further opportunities for asset management firms operating in Ireland.”
Also addressing the webcast, David Clarke, Policy Director and founder of the Scottish-Irish Finance Initiative, said: “By deepening its linkages and relationships, Ireland can become the bridge into Europe in a post Brexit environment, serving UK, US and Asian investors. The Irish Government should embrace the important role of representing the fund management industry in Europe. Both Ireland and the industry will prosper if the Government can incentivise asset managers to develop their core functions here.”
The webcast noted two further opportunities for the asset management industry:
Andrew O’Callaghan concluded: “Capable of offering market access and a deep English speaking talent pool, Ireland’s fund management industry is strategically positioned to be a progressive truly cross-border industry. We need to continue to work together, building skills and linkages in our markets while providing smooth market access to the EU for our non EU colleagues.”
Further to this, PwC Ireland has identified five key steps for asset fund managers to undertake now before the impact of Brexit fully hits (refer to Notes to Editor below).
The webcast hosted by PwC Ireland, took place on 14 October and was attended by over 150 asset managers based in 14 countries including in Ireland.
For more information, click here: https://www.pwc.ie/industries/asset-management/insights/five-key-brexit-considerations.html
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