Irish Funds Annual Global Funds Conference 2019 23 May 2019 - - PowerPoint PPT Presentation

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23 May 2019

Irish Funds Annual Global Funds Conference 2019

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Breakfast kindly sponsored by:

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Premium Sponsors

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Premium Sponsors

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Event Partners

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Laura Wadding Director, Deloitte

MC

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Wi-Fi Access

Wi-Fi SSID: IrishFunds Password: BBH@2019

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Audience Interaction

www.sli.do #IFConf19

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Yvonne Connolly Chairperson, Irish Funds CEO, Carne Group

Opening Address

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Pat Lardner Chief Executive, Irish Funds

Economic Impact & Strategic Direction of the Industry

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Quantitative aspects based on 31 December 2018 data

Economic Impact Study – Background & Approach

• Why do it?
• Why now?
• How best to do it?
• Who?

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Key Findings

Source: Indecon research among Irish funds industry participants

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Key Findings – Regional Employment

Source: Indecon research among Irish funds industry participants

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Other Findings

Wider Impacts of Industry on Irish Economy: Participant’s Views

Source: Indecon research among Irish funds industry participants

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Other Findings

Factors Impacting Growth over the next 5 Years – Participant’s Views on Relative Impacts

Source: Indecon research among Irish funds industry participants

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Future Scenarios (Indicative)

Indicative Scenarios for Future Increase in Economic Impacts Employment Impact

Note: Scenarios based on average of growth rates predicted by industry participants, excluding high outliers. Central scenario assumes overall growth of 23.6%, or 4.3% per annum (compound average). Low growth scenario assumes growth of 11% over period, or 2.1% per annum, while high growth scenario assumes growth of 36.3% between 2018-2023, or 6.4% per annum.

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Future Scenarios (Indicative)

Indicative Scenarios for Future Increase in Economic Impacts Exchequer Contribution/Tax Payments (€ Million)

Note: Scenarios based on average of growth rates predicted by industry participants, excluding high outliers. Central scenario assumes overall growth of 23.6%, or 4.3% per annum (compound average). Low growth scenario assumes growth of 11% over period, or 2.1% per annum, while high growth scenario assumes growth of 36.3% between 2018-2023, or 6.4% per annum.

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Links to our advocacy work

• Regional events
• Local media out-reach – we are active in communities around the country
• Supporting our engagement with local parliamentarians and MEP Candidates
• Strong background for our briefing of MEPs and Perm Rep in Brussels

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Unchartered waters ahead & some tipping points

• Industry composition and diverse strengths
• Renewal of the EU Institutions
• Policy environment & advocacy
• Changes in the neighbourhood shouldn’t weaken the community

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Michael D’Arcy Minister of State at the Department of Finance

Government Address

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Panel Discussion: Business Leaders

Andy O’Callaghan, PwC (Moderator) Victoria Brown, Aberdeen Standard Investments David Greco, FIL Fund Management Angela Billick, John Hancock Investments Glenn Thorpe, Goldman Sachs Asset Management

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Ed Sibley Deputy Governor, Prudential Regulation, Central Bank of Ireland

Address from the Central Bank of Ireland

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Panel Discussion: The Future of Regulation

Mary O’Dea, Institute of Banking (Moderator) Evert Van Walsum, ESMA Nick Miller, FCA Tanguy Van De Werve, EFAMA Martina Kelly, Central Bank of Ireland

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Coffee break kindly sponsored by:

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Richard Susskind, OBE Author of “The Future of the Professions: How Technology Will Transform the Work

• f Human Experts”

Keynote Address

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Panel Discussion: The Future of Work

Neil Sands, Fox Design (Moderator) Dr Susan McKeever, Technological University Dublin, School of Computer Science Richard Susskind OBE, Author Marie Dzanis, Northern Trust Asset Management Colin Meagle, Continuum Group

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Andrew McDowell Vice President, European Investment Bank

Keynote Address

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Lunch break kindly sponsored by:

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Peter Branner CIO, APG Asset Management

Keynote Address

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Breakout Parallel Panel Discussions

Repeated: 14:40 & 15:20

• FinTech and Artificial Intelligence
• Liffey Hall 1
• Cybersecurity
• Liffey Meeting Room 2
• ESG Investing
• Liffey A – Main Seminar Room
• The Future of Fund Distribution
• Liffey Hall 2

FinTech & AI Distribution ESG Investing Cybersecurity

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Panel Discussion: ESG Investing

Rachel Turner, BNY Mellon (Moderator) Will Oulton, First State Investments Elizabeth Gilliam, Invesco Meaghan Muldoon, BlackRock Jaakko Kooroshy, FTSE Russell

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Panel Discussion: FinTech and Artificial Intelligence

Kate Webber, Calastone (Moderator) Lior Yogev, FundGuard Olivia Vinden, Alpha FMC Rachel Howick, Citi Miroslav Petrov, Fortia Financial Solutions

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Panel Discussion: The Future of Fund Distribution

Fabrizio Zumbo, Cerulli Associates (Moderator) Paul Price, Morgan Stanley Investment Management Lory Kehoe, ConsenSys Henning Swabey, Calastone Lorraine Dunbar, JP Morgan Securities Services

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Drivers of Change

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New Rules, New Costs, New Challenges

MiFID II: Expected Additional Costs

EUR 8.5m

Amount Man Group set aside in

• rder to comply with MiFID II

USD 15m

Amount Jupiter would incur in additional expenses for research

GBP 5m

How much Italian private banks are expected to increase the cost of research

25%

Greater transparency Fee compression Consolidation

Potential Outcomes

A “new” regulatory framework is adding distress to asset managers’ economics

Sources: Various industry sources, Cerulli Associates

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Technology Developments Are Here…

One to three people 58.3% None—we do not employ people for big data analytics 33.3% More than six people 8.3%

Number of Employees Dealing with Asset Managers' Big Data Analytics, 2018 Asset Managers’ Approaches to Implementing Innovation, 2019

But asset managers are approaching innovation opportunistically

Sources: Cerulli Associates

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Technology Developments Are Here…

Asset Managers’ Level of Adoption of Selected Digital Technologies, 2019

Sources: Cerulli Associates

But asset managers show a low level of adoption of emerging technologies

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Investors’ Preferences Are Shifting

The assets of ETFs domiciled in Europe rose at a CAGR of 16% from 2012 to 2018

European Exchange-Traded Fund Assets by Domicile, 2012–2018 (€ billions)

Sources: Broadridge, Cerulli Associates

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Investors’ Preferences Are Shifting

ETFs and smart beta are expected to grow

Anticipated Growth Rate of ETFs and Smart Beta Assets in Europe, 2018

Sources: Cerulli Associates

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What will the Future Look Like?

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Panel Discussion: Cybersecurity

Hugh Callaghan, EY (Moderator) Nicola O’Connor, AIB Michael Gubbins, Garda National Cyber Crime Bureau Joern Dobberstein, Central Bank of Ireland

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Coffee break kindly sponsored by:

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Panel Discussion: Brexit

Deborah Hutton, Eversheds Sutherland (Moderator)

• Prof. Federico Fabbrini, Brexit Institute DCU

Senator Neale Richmond, Seanad Eireann Chris Cummings, The Investment Association Eve Finn, LGIM Ireland

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Pat Lardner Chief Executive, Irish Funds

Closing Remarks

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Premium Sponsors

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Premium Sponsors

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Event Partners

See you next year! Annual Global Funds Conference – Thursday 21 May 2020

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Drinks Reception kindly sponsored by:

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23 May 2019

Irish Funds Annual Global Funds Conference 2019

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Gala Dinner kindly sponsored by: