Assets under management in Irish domiciled investment funds is set to climb to over €5 trillion by 2025, rallying from the €3.21 trillion recorded at the end of 2020.

This is according to new industry analysis by Irish Funds, the Association of the Funds and Asset Management Industry in Ireland.

With nearly 8,000 domiciled funds and over 14,000 total funds administered here, Ireland has over the last 30 years become the second investment fund location in the EU and the third largest in the world. 

The Irish investment funds industry currently employs just over 16,000 people across asset management, depositaries, administrators, professional advisors, transfer agents, and other specialist firms.

Based on expected growth, and as a result of changing legislation and the rapidly evolving sustainable finance agenda, the industry's workforce is expected to grow by 25% to over 20,000.

At the end of last year, the Government passed legislation to amend and extend the Investment Limited Partnerships Act 1994, which overhauls existing legislation to allow for the establishment of special investment partnerships.

Irish Funds recently detailed its new strategic framework to capitalise on the surge in expected growth in the sector and to support the trade body's increasing number of members, which is up by over 30% in the last four years. 

The framework will help to set a clear vision and agenda for the next three years as the funds and asset management sector manages the impact of the Covid-19 pandemic and Brexit as well as driving other important initiatives. 

Pat Lardner, chief executive at Irish Funds, said this year marks the group's 30th anniversary and will be pivotal for both Irish Funds and the industry as a whole. 

"Our new strategic framework is the culmination of 12 month's work in which we gathered valuable insights through our members to help us better understand their key priorities and evolving requirements," Mr Lardner said. 

He said it is a crucial time for the millions of people around the world for whom the funds industry provides investment solutions and services, and with assets under management in Irish domiciled funds set to grow substantially, there is a real opportunity for Ireland to become a new, greater force in the financial market. 

"While we face a range of urgent issues and opportunities, we must work to understand what’s at stake and be decisive, dynamic and unified as a sector so that we can meet the challenges of this era," he added.