· Report 2015 7 German promoters of with 96 Irish domiciled funds & $47 billion in AUM 81 UCITS funds 15 AIFs 123 US promoters of with >1,500 Irish domiciled funds (35% of total)

www.irishfunds.ie

www.irishfunds.ie22 www.irishfunds.ie

Irish Funds San Francisco Seminar 2016


PREMIUM EVENT SPONSORS


www.irishfunds.ie

Anthony Bassili

Chapter Executive

CAIA

Welcome

www.irishfunds.ie

Kieran Fox

Director – Business Development

Irish Funds

Irish Funds Overview

www.irishfunds.ie

Who/what we are….

• industry association for all aspects of regulated cross border funds

in Ireland

– representative function

– promotional function

• 114 member firms, located both in and outside Ireland

• key link to the authorities & policy makers in Ireland and beyond

• the industry’s representative in Europe and globally

• a platform for collaboration, information sharing and driving

outcomes & improvement

www.irishfunds.ie

The Irish funds industry

• supports managers from all over the world

• full range of services for Irish domiciled

funds as well as providing expert services

for funds domiciled outside of Ireland

• solutions are provided to managers

across the full spectrum of investment

strategies

Fund Manager

Irish Administered

Funds

Irish Domiciled Funds

UCITS

AIFs

Non Domiciled Funds

www.irishfunds.ie

Long track record of delivery

Total Assets under Administration, Euro billions

Source: Central Bank of Ireland and Irish Funds

www.irishfunds.ie

Scale, Diversity and Momentum to support you

Irish Domiciled Funds – Product BreakdownEuro billions

Source: Central Bank of Ireland and Irish Funds

www.irishfunds.ie

Irish Domiciled Funds: AIFsQualifying Investor Alternative Investment Funds (QIAIFs)

QIAIFs Net Assets and Number of Funds

Source: Central Bank of Ireland

www.irishfunds.ie

US Promoters of Irish Funds

Source: Monterey Ireland Fund

Report 2015

7 German promoters of with 96 Irish domiciled funds & $47 billion in AUM

81 UCITS funds 15 AIFs

123 US promoters of with

>1,500 Irish domiciled funds (35% of total) &

> $1 trillion in AUM (50% of total)

>1,100 UCITS funds >400 AIFs

Cash/Short-Term, 27%

Bonds, 20%

Exchange Traded Equities, 11%

Equities, 11%

Exchange Traded Bonds, 9%

Index Tracking Equities, 7%

Alternative Investment, 6%

Index Tracking Bonds, 3%

Mixed Equities/Bonds,

2%

Asset Allocation of US managed Irish Funds

www.irishfunds.ie

What does the industry in Ireland provide?

• EU Single Market Access: product & service passports

• Investor Access: European Market and beyond

• Service Excellence

• Low Costs

• Low Tax Environment

• Regulatory Environment

• Commitment from Government

• Infrastructure : language/legal/telecommunications

7thIMD WORLD

COMPETITIVENESS

2016 YEARBOOK

1st

FLEXIBILITY AND

ADAPTABILITY OF

PEOPLE

1st

IN EUROPE FOR

COMPLETION OF

3RD LEVEL EDUCATION

www.irishfunds.ie

Pádraig Brosnan

Partner

Maples and Calder

Brexit Update

www.irishfunds.ie

Brexit Update

Key Topics

• Brexit and possible implications

• AIFMD, UCITS, MIFID II, EMIR and MAR

• Possible solution? Establishment of Irish AIFM/UCITS

Management Company ("Super ManCo")

www.irishfunds.ie

Brexit Update

Brexit Implications

Background• 23rd June – U.K. Referendum

• 24th June – result announced: 52% voting to leave the EU

• U.K.'s FCA release statement regarding U.K. law and EU

legislation

Following the result:• Value of pound dropped

• Share prices slumped

• U.K. lost "Triple A" rating

• Interest rates cut

• David Cameron resigned, with Theresa May succeeding him

as PM

www.irishfunds.ie

Brexit Update

Steps to Leave the EU

• U.K. invokes Article 50 of the Lisbon Treaty

• Theresa May last Sunday – U.K. to invoke Article 50 by March

2017

• Commences two year negotiation period – Brexit by Q1 2019

• Withdrawal agreement needs approval from 20 countries

• Two year period can be extended with unanimous consent

• If no extension, U.K. ceases to be a member state

www.irishfunds.ie

Brexit Update

Imponderables

• There are a number of key uncertainties that remain in respect

of Brexit, such as the form that Brexit will take

• Difference between "Hard Brexit" and Soft Brexit"

• What will the U.K. seek to retain of EU overlay?

www.irishfunds.ie

Brexit Update

Post Brexit – What is Affected?

• Impact on U.K. Offices of U.S. Managers and U.K. limited

partners

• AIFMD

• UCITS

• MIFID II

• European Markets Infrastructure Regulation ("EMIR")

• Market Abuse Regulation ("MAR")

• Tax Considerations

www.irishfunds.ie

Brexit Update

Post Brexit – Solutions

• An Irish management company can obtain authorisation as: (i)

a UCITS management company; or (ii) an AIFM; or (iii) a dual

authorisation, i.e. both UCITS management company and

AIFM (a "Super Manco")

• The Super ManCo can also extend its licence to perform MiFID

individual portfolio management functions (management of

non-fund portfolios, investment advice etc.)

www.irishfunds.ie

Brexit Update

Establishing a Super ManCo

• Should a client establish a 'Super ManCo' this structure could

be used for both ICAV and UCITS structures. There are

effectively 3 forms of Super ManCo:

1) Establishment of proprietary Super ManCo;

2) Appoint a third party/delegated Super ManCo; or

3) Utilise 'Designated Persons' to augment a proprietary Super

ManCo.

• Application Process

• Timeline

www.irishfunds.ie

Brexit Update

Substance requirements for Super ManCo

• There are no express requirements on the type of staffing model to be

applied to the Super ManCo. The discharge of functions and

delegation structure are considered on the basis of qualitative criteria.

Irish Super ManCos are permitted to delegate key functions out of

Ireland to EEA and global based entities. It is common for such

delegation to include tasks such as portfolio management, risk

management, certain administration activities and distribution.

• The Central Bank has a clear and fast-track procedure for approving

delegates who are authorised by other EEA competent authorities or

globally recognised counterparts (including the major regulators in the

U.S., Asia, EMEA region, LatAm and Australia).

www.irishfunds.ie

Brexit Update

Delegation Model Option for Super ManCo

• Separate to establishing your own Super ManCo, there is the option of

utilising a third party Super ManCo to act for both your AIFs and UCITS

products.

• Hosted Super ManCo

www.irishfunds.ie

Brexit Update

Expertise

Pádraig specialises in advising leading international

financial clients on the establishment, operation and

regulation of all types of investment funds including UCITS,

AIFs, hedge funds, private equity funds and other bespoke

specialised fund products. In addition to advising the

investment managers on the structuring of such funds in

Ireland, he also advises other fund services providers

including administrators, depositarys, investment advisers

and prime brokers.

Pádraig Brosnan

Partner

Direct: +1 345 814 5441

Email: [email protected]

www.irishfunds.ie

• Dan Forbes, DMS Governance

• Dervilla Lannon, Blackrock

• David Walsh, Dillon Eustace

• Niamh Geraghty, Deloitte

Irish Funds Update Panel

Moderator

Panellists

www.irishfunds.ie

Rob Drake

Bury Street Capital

Interviewer:

Andrew Thorne

BBH

Distributor Interview

Who is buying in Europe and what are they buying?

www.irishfunds.ie

Closing Remarks


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Disclaimer:The material contained in this document is for marketing, general information and reference purposes only and is not intended to provide legal, tax, accounting, investment, financial or other professional advice on any matter, and is not to be used as such. Further, this document is not intended to be, and should not be taken as, a definitive statement of either industry views or operational practice.

The contents of this document may not be comprehensive or up-to-date, and neither Irish Funds, nor any of its member firms, shall be responsible forupdating any information contained within this document.

Documents

· Report 2015 7 German promoters of with 96 Irish domiciled funds & $47 billion in AUM 81 UCITS funds 15 AIFs 123 US promoters of with >1,500 Irish domiciled funds (35% of total)