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Irish Examiner
12 hours ago
- Business
- Irish Examiner
Highly-rated Irish funds sector offers a lucrative career path
Ireland's funds sector is creating a wealth of rewarding career paths as the nation cements its reputation as an EU funds industry leader. EU-based investors have €1 trillion of investments in Irish-domiciled funds, giving them access to investments in Europe and globally. And by attracting global capital into the EU, Irish-domiciled funds have €1 trillion invested into assets across the EU. The funds industry in Ireland generated €11.45bn in revenue and contributed €15.4bn in gross value added (GVA) to the Irish economy in 2023. A recent report by Irish Funds, the voice for Ireland's investment funds and asset management industry for more than 30 years, showed that the sector employed more than 19,500 people and contributed nearly €1bn in direct tax revenue in 2023. Direct employment in the sector has grown by 22% over the past five years, with nearly half of those working in the industry now located outside Dublin. In this Q&A interview, Pat Lardner, CEO of Irish Funds, outlines some of the factors driving new jobs growth in the sector, as well as looking at how actions to support the sector and to boost people's financial literacy can be of huge benefit to the Irish economy. How have remote and flexible work options boosted talent retention in the sector? The Irish funds and asset management industry was quick to adapt to remote working during the pandemic, and that agility has paid long-term dividends. Today, flexible and hybrid work models are commonplace. The industry's ability to incorporate regional talent has significantly increased, with employment outside of Dublin now accounting for almost 46% of the total workforce. This expansion across the country, which supports balanced regional development has deepened the talent pool and improved retention. Flexible work has also been a critical factor in supporting gender inclusion. Hybrid working supports women staying in, or re-entering, the workforce. Returner programmes at several companies in the funds and asset management industry are a testament to this shift. Firms are positioning themselves to attract and retain the best talent across the country. How are employers helping to address the fact that over 50% of adults in Ireland fall below the OECD minimum level of financial literacy? Ireland's financial literacy gap is a serious concern, but the funds and asset management industry is actively part of the solution. Increasingly, firms are investing in outreach programmes, including Transition Year (TY) initiatives, that equip young people with the financial knowledge they need to navigate adulthood. Irish Funds, the representative body for the sector, has worked to scale these types of educational engagements, including through the Irish Funds TY Programme. Last year the programme reached 750 students in 23 schools in 14 counties across Ireland, supported by 43 industry volunteers. Financial Literacy programmes are designed not only to inform students but to demystify the world of investment and savings. This outreach is essential: understanding how money works, how to manage it, and how to plan for the future are foundational life skills, yet many adults report lacking confidence in these areas. By targeting teenagers, the industry is aiming to shift long-term behaviours. These efforts complement broader policy goals to enhance financial wellbeing and reduce inequality of access to financial tools and advice. We are also supporters of the National Financial Literacy Strategy, launched by the Minister for Finance earlier this year. How does the fund and asset management industry support savers in Ireland and the broader economy? Ireland's funds and asset management industry plays a crucial role not only globally but domestically as well. At its core, it helps channel savings into productive investment such as supporting businesses, infrastructure, innovation, and economic resilience. For individual savers, the industry provides access to better long-term outcomes than traditional savings accounts. With inflation and rising living costs, holding wealth in deposit accounts often leads to value erosion over time. Investment funds help grow savings and preserve purchasing power. On a macro level, the industry is a major economic contributor. According to the latest Indecon Economic Impact report, it added €15.4 billion in gross value to the Irish economy and supports 37,500 full-time equivalent jobs across the country. This includes a notable 100% increase in regional employment over the past five years. As more Irish people engage with investment products — whether through pension funds, ETFs, or private assets — the sector's relevance to everyday lives is only set to grow. How will the proposed Savings and Investment Union (SIU) reform support Irish savers? The EU's proposed Savings and Investment Union (SIU) is a transformative initiative aimed at boosting financial market integration across Europe, and Ireland is well placed to lead in this area. Its goals are simple — make it easier and more attractive for people across the EU to invest their money, rather than leave it idle in deposits. For Irish savers, SIU could mean greater access to a broader range of investment products, improved transparency, and potentially more favourable tax and regulatory conditions. It would also help to reduce some of the structural barriers that currently discourage long-term investing, such as the high exit tax on fund returns compared to deposit interest. Ireland's funds industry has an important role to play in shaping and delivering the SIU. As a leading EU domicile and distribution hub, our expertise and infrastructure can support the mobilisation of savings into investments that power the real economy. Whether it's funding climate transitions, digital infrastructure, or housing, the SIU can help ensure capital flows to where it's needed most while supporting savers in achieving better financial outcomes.
Irish Times
16-06-2025
- Business
- Irish Times
Time is now to boost Ireland's funds industry
Ireland's funds and asset management sector stands at a pivotal moment. With decades of experience and a strong reputation for expertise, Ireland has established itself as a global powerhouse in funds and asset management. But we cannot stand still. Shifting investor expectations, intensifying international competition and major EU policy developments – such as the proposed Savings and Investments Union (which aims to make it easier to save and invest) – require us to evolve and future-proof our offering and capabilities. This sector is not only a cornerstone of Ireland's international financial services offering, it is also an engine of domestic growth, regional development and high-value employment. READ MORE According to the latest Indecon report commissioned by Irish Funds, the industry contributed €15.4 billion in gross value added to the Irish economy. Employment in the sector has grown by 22 per cent over the past five years, with nearly half of all funds professionals now based outside Dublin. As of the end of 2023, the industry supports a total of 37,500 full-time equivalent roles nationwide. Ireland's ecosystem supports every type of investor from individuals to the largest global pension funds. It does this by enabling them to pool their resources in investment funds based here under EU law. While these names may not be familiar to many outside the industry, undertakings for collective investments in transferable securities (UCITS), money market funds (MMFs), exchange traded funds (ETFs), alternative investment funds (AIFs) and European long-term investment funds (ELTIFs) hold the savings of millions of people around the world. This system has helped Ireland build one of the most successful and trusted investment funds hubs in Europe. Yet continued success is not guaranteed. Ireland's strong EU market share has been earned over decades by enabling people to invest for their future, and these needs are only increasing. Thanks to a robust regulatory foundation, the industry has remained responsive and resilient. According to the European Fund and Asset Management Association's December 2024 data, Ireland continues to hold a significant portion of the European fund market. To sustain and expand this position, we must address pressing challenges. At a European level, the drive for simplification and competitiveness is in full swing. Globally, trade policies are shifting, with goods tariff measures and countermeasures being announced regularly. Funds domiciled in Ireland hold investments worldwide and are vital funding of both EU and non-EU economies. Ireland must continue to engage in diplomatic and industry-level discussions to ensure what we do here for economies and citizens is understood. Competition within the EU is also intensifying, with other markets vying to replicate our success and increase their share of the European funds sector. Ireland must continue to differentiate itself through agility, innovation and a clear policy roadmap. Ireland's investment funds sector has proven its resilience, weathering economic and geopolitical shocks while remaining a central pillar of Europe's financial system. But resilience alone won't carry us forward. To stay ahead, Ireland must move from preserving its current strengths to shaping the future. The Funds Sector 2030 Review offers a clear roadmap. That means closing gaps in our offering, particularly for those wishing to invest in private assets, and modernising our framework to compete globally. Without targeted policy updates, streamlined regulation and tax reform, we risk falling behind. At the same time, Ireland's role as a transatlantic investment hub has never been more important. We connect US capital to European markets and vice versa, underpinning cross-border flows that fuel businesses, pensions and infrastructure. Any loss of competitiveness here would have ripple effects well beyond our shores. Ireland must protect its leadership in areas such as ETFs, prepare for the digital future of fund management and deliver on the 2030 Review with urgency and intent. This is our ambition as much as resilience. One of Ireland's biggest growth opportunities lies in becoming a hub to enable institutional and retail investors to invest in private assets. These assets, which represent direct investments in businesses, projects or physical assets (such as infrastructure) not traded on public exchanges such as stock markets, are a fundamental component of investors' portfolios. They generate strong returns and are meeting real-world needs. For example, over the past two decades, US state pension funds earned annual returns of 11 per cent from private equity – nearly double the return of global equity benchmarks. These investments are also increasingly accessible to individual investors through regulated fund structures. That investment in private assets is helping finance the infrastructure Ireland and the EU needs – from housing and hospitals to energy, transport, and water systems. With the right framework, Ireland can position itself as a leading European destination for long-term, sustainable capital. Yet at the moment we are falling short. Investors want access to private assets through Irish-domiciled funds but we are not providing that effectively. This is a missed opportunity for growth and to underpin the competitiveness of existing products that support jobs across the country. [ Thinking of investing? The good news is that it has got easier Opens in new window ] To remain competitive, Ireland must implement targeted regulatory and tax changes as well as quickly transposing key EU legislation to create a level playing field. Failing to do so could weaken our broader investment proposition at a time when global capital is on the move. Ireland has the talent, infrastructure and track record. What we need now is the policy certainty and momentum to match. Pat Lardner is chief executive of Irish Funds
