Fund administration in Ireland survey 2012
From humble beginnings in the early 1990s, the Irish funds industry has become a global player, servicing assets in excess of US $2.4 trillion and employing 11,000 people.
The Deloitte fund administration survey reveals that the investment funds industry in Ireland continues to win new business and post strong revenue growth. Yet fund administrators globally are facing increasing challenges related to market uncertainty, regulatory change, cost and fee pressures, operations and service levels.
The survey provides insights on CEO thinking in relation to strategy and operations as well as views on specific regulatory changes. These include the Alternative Investment Fund Managers Directive (AIFMD), Foreign Account Tax Compliance Act (FATCA) and corporate governance.
The key findings include:
• All respondents reported positive revenue growth for the financial year 2011
• High revenue growth is mainly attributed to the take-on of new clients and additional volumes from existing business
• A majority (64%) of Irish fund administrators view the AIFMD as a business opportunity for Ireland
• Fee and cost pressure has intensified as market volatility has led to lower returns for fund administration fees based on a proportion of AuM
• The imperative to drive down costs has focused administrators on efficiency initiatives programmes but additional focus on profitability may be required
How can administrators future proof their business models, enhance their profitability and provide more value added services?
|Brian Forrester, Partner, Investment Management Advisory||+353 1 417 2614|
|Deirdre Power, Head of Investment Management Advisory||+353 1 417 2448|
|David Dalton, Partner, Investment Management Advisory||+353 1 417 4801|