Trends in the Irish market: growth and opportunity

Wednesday, October 27, 2021 | By Adrian Beattie, Managing Director

Trends in the Irish market: growth and opportunity

We recently sat down with industry experts in the investment management space in Ireland to talk about the direction of the market and the industry. Arun Neelamkavil and John Madigan are independent directors and consultants. We asked them about the post-COVID landscape, and they discussed trends that seem likely to continue.

Neelamkavil predicted people will be returning to their offices soon if they haven’t already, but that a hybrid schedule of balancing between working in the office and working remotely will likely be common. In a digital age, it makes sense to have that flexibility. He also mentioned that the industry has proven its resilience over the past year and a half, showing signs of significant growth.

Madigan spoke about the increase in consolidation and M&A activity, both vertically and horizontally, which is expected to continue, particularly in Luxembourg and Ireland. Another sign of growth, the number of new fund products that have launched both this year and last is significant.

Another trend in the industry is that people expect their funds to work for them, particularly retirement and other retail investments. While that attitude has already been the norm in the US, mutual funds and retail access funds are growing in popularity in Ireland.

Outsourcing has been a growing trend in Ireland in the ManCo space for 20 years or more, as technology has become more complex and firms have started offering more services. Efficiency has been a driving factor behind that trend, as well as increasing transparency.

The group also discussed the shift to ILP, which has passed through legislation but still seems to come with some hesitancy. That hesitancy may stem from uncertainty about how much of a regulatory burden it will impose on funds. However, Neelamkavil thinks those regulatory requirements will be lighter than many anticipate.

For more details about developments in the ManCo space and how those developments are affecting Irish markets, as well as the shift to ILP, listen to the full podcasts with the first part focusing on ManCo trends and the second installment focusing on ILP and the INED space.

EMEA, Fund Administration

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