Irish asset management industry set for growth - PwCMonday 10 February 2014 11.38
The value of assets under management in Ireland has the potential to grow to €3.5 trillion by 2020, according to accountancy firm PwC, creating up to 10,000 new jobs in the industry.
More than €2.5 trillion worth of assets are currently managed in Ireland, according to the firm, making the country one of Europe’s top three locations for such investments.
According to PwC’s Asset Management 2020 report, the value of assets under management globally is set to rise by nearly $30 trillion to $101.7 trillion in the next six years.
Economies in Africa, Asia and the Middle East are set to see the strongest growth during this time, it says, however the majority of assets will continue to be managed from the US and Europe by 2020.
The value of assets under management in Europe will rise to £27.9 trillion by this time, it says, representing a compound annual growth rate (CAGR) of 4.4%.
In North Ameria, assets under maangement will rise to $49.4 trillion, representing a CAGR of 5.1%.
PwC says the global growth will be driven largely by the increase in defined contribution pension fund schemes and the increase in high net worth individuals.
Growth in the Irish industry is expected to come from emerging markets, with PwC expecting funds from Hong Kong and Singapore to develop connections with European centres like Ireland.
“The increased globalisation of the industry and the rise of a middle class in emerging markets represent a significant opportunity,” said Andrew O’Callaghan, asset management partner with PwC Ireland.
“Ireland has such a diverse range of funds it is well placed to capitalise on these growth trends in the future.”
However Mr O’Callaghan warned that the country – and region – needed to remain competitive in the years ahead to ensure that potential business was not lost to US-based funds.