Ireland’s Funds and Asset Management industry contributes nearly €1 billion in direct taxes and employs almost 20,000 people nationally, survey reveals

Industry-government collaboration to unlock further growth potential and ensure Ireland remains a competitive leader in global financial markets 

DUBLIN, Monday 23rd September 2024 – Ireland’s funds and asset management industry continues to be a vital contributor to the national economy, directly employing 19,519 people and contributing nearly €1 billion in direct tax revenue in 2023, according to the latest Indecon report commissioned by Irish Funds, the industry’s representative body. 

By helping to meet the diverse needs of savers and investors around the world the industry is also driving positive economic impact across Ireland. The report highlights that the industry generated €11.45 billion in revenue and contributed €15.4 billion in Gross Value Added (GVA), further solidifying its role in driving Ireland’s economic growth.  

Direct employment in the sector has grown by 22% over the past five years, with nearly half of those working in the industry now located outside Dublin, illustrating the industry’s contribution to balanced regional development. As of the end of 2023, employment has increased to almost 37,500 FTEs on an economy-wide basis when indirect and direct jobs are included.  

The increase in the number of industry firms and the range of expert services they are providing is enhancing Ireland’s international reputation abroad while making an impact here at home. This is evidenced by the growth in assets managed and serviced in Ireland reaching €5.7 trillion by the end of last year.  

Irish Funds, established in 1991, represents over 150 members encompassing every aspect of the chain of services that provides solutions to investors, including asset managers, custodians, fund administrators, professional advisors and providers of infrastructure and technology. The association is the voice of the industry, supporting its continued growth and contribution to Ireland’s economic success. 

The industry plays a key role in channelling savings into investments that drive and fuel economic growth. This cycle of savings, investment, and market expansion underlines the sector’s importance in sustaining and growing Ireland’s financial sector, reinforcing its role as a pillar of the national economy. With a direct link into EU policy the industry is also helping to fund climate transition, address the financial needs of ageing populations and digitalisation.  

While the industry has seen robust growth, the report also highlights areas where further collaboration with the government could help unlock even greater potential, particularly in the area of private markets investing. With minor adjustments to Ireland’s legal and regulatory framework, the country can continue to strengthen its position as a global leader in this competitive field. 

"By meeting the needs of investors and savers from around the world Ireland's funds and asset management industry has demonstrated strong growth, benefitting every part of the country. But we operate in a fast moving, innovative and competitive environment. By working together with the government and taking proactive steps, Ireland can continue to build on its status as a global leader,” said Pat Lardner, Chief Executive of Irish Funds. 

The report outlines three key areas for transition that are crucial for maintaining the industry’s positive trajectory: sustainable finance, digital transformation, and regulatory enhancements. As sustainable investing gains momentum globally, Ireland must shift toward ESG-focused frameworks to meet investor expectations. Simultaneously, embracing AI, machine learning, and big data will be essential for keeping Ireland competitive in a rapidly evolving financial landscape. 

The economic and labour impact of the sector remains significant, with a labour spend of €2 billion in 2023. Investment and asset managers accounted for 30% of total labour spend, with fund administration and legal services representing other key areas. This spend reflects not only the industry's strong workforce but also its critical role in job creation and career progression. 

“We're seeing green lights in many areas of growth,” Lardner continued, “but to ensure long-term success, we need to work closely with policymakers. This partnership is essential to grasp the opportunities that exist, ensure Ireland’s ongoing competitiveness and retain our position as a global leader in an evolving financial landscape.” 

Ends 

Notes to Editor 

About the Indecon Assessment of Economic Impact of the Funds & Asset Management Industry on the Irish Economy report 

This report was completed by Indecon International Economic and Strategic Consultants (‘Indecon’) on behalf of Irish Funds. The report represents an independent assessment of the economic impact of the funds and asset management industry on the Irish economy. The study includes an evidence-based assessment of the profile and economic footprint of the industry, as well as its contribution to the Irish economy as of 2023. 

About Irish Funds 

The Irish Funds Industry Association (Irish Funds) is the voice of the funds and asset management industry in Ireland. Founded in 1991, Irish Funds works with its 150+ member firms to ensure that Ireland is the premier location to support global investing through its reputation for trust, capability and innovation.   

Irish Funds’ members encompass every aspect of the chain of services that provide solutions to investors, including asset managers, custodians, fund administrators, professional advisors and providers of infrastructure and technology. 

With offices in Dublin and Brussels, Irish Funds is also an active member of both the European Fund and Asset Management Association and the International Investment Funds Association. 

For further information about Irish Funds, please visit www.irishfunds.ie  

For media queries, please contact: 

Paul Griffin  

pgriffin@reputation-inc.com 

Orla O’Callaghan 

oocallaghan@reputation-inc.com