irish funds stockholm seminar€¦ · aifm / ucits manco auditor fund depositary fund admin / ta...

2irishfunds.ie

6 November 2019

Irish Funds Stockholm Seminar

irishfunds.ie

Ailbhe MacManus

Director, EY

Welcome Remarks

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H.E. Dympna Hayes

Ambassador of Ireland to Sweden

Ambassador's Address

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Kieran Fox

Director of Business Development,

Irish Funds

Welcome Remarks

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The Irish funds industry: a snapshot

irishfunds.ie

Membership Breakdown

Source: Irish Funds as at 10.09.2019

Full Members : 125 Associate Members: 21

Asset Manager, 14

Other, 6

Legal, 1

Asset Manager, 51

Administrator, 36

Other, 15

Legal, 15

Auditor, 8

irishfunds.ie

Ireland as a location for investment funds

8

ICAV

Investment Company

Unit Trust

CCF

ILP

UCITS

AIFs

Authorisation

• UCITS management company / AIFM authorisation

or passport in

• Investment Manager Approval

• Director Approval

• Detailed application with constitutional document,

prospectus, material contracts with various parties

(e.g. Depositary Agreement, Administration Agreement)

AIFM / UCITS ManCo

FundAuditor Depositary

Fund Admin / TA

Key parties

Fund structures

1

2

3

Choose UCITS or AIF

Choose a legal structure

Seek authorisation

irishfunds.ie

Total Assets Under Administration –

Split between Irish & Non-Irish Funds

Source: All data sourced from Central Bank of Ireland

965

1,394 1,398 1,443

1,883 1,886

2,199

2,722

3,375

3,806

4,095

4,4084,216

4,728

728 807 646 748964 1,055

1,227 1,3441,664

1,8992,085

2,396 2,4212,711

237

587

752695

919 831972

1,378

1,7111,907

2,0112,012

1,794

2,018

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 June-19

EU

R B

illio

n

Total Domiciled and Non-Domiciled

Assets Under Administration

Total Non Domiciled Total Domiciled Series3

irishfunds.ie

Total Domiciled Fund Assets

Source: All data sourced from Central Bank of Ireland

728 807646

748964 1,055

1,2271,344

1,6641,899

2,085

2,396 2,421

2,711

4,087

4,780 5,0254,627 4,743

5,0695,305

5,5995,833

6,201

6,4706,812

7,2907,531

0,000

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

0

500

1,000

1,500

2,000

2,500

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 June-19

No

. o

f F

un

ds

EU

R B

illio

n

Irish Domiciled Funds

Total Net Assets & No. of Funds

Net Asset Values Number of Funds

irishfunds.ie

Domiciled assets – growth and breakdown

11

UCITS75%

AIFs25%

Irish domiciled fund assets

Source: Central Bank of Ireland, June 2019

Equity 27%

Alternatives 25%

Bond 23%

Money Market

18%

Balanced 5%Other 2%

Breakdown of Irish fund domiciled assets

irishfunds.ie

Fastest Growing of Largest European Fund

Domiciles

Source: EFAMA Statistics

Growth in domiciled assets from 31.12.2011 to the end of each period expressed

as a %.

2011 2012 2013 2014 2015 2016 2017 2018 Q2 2019

Europe 0% 13% 23% 42% 58% 78% 97% 90% 109%

Luxembourg 0% 14% 25% 48% 67% 77% 98% 94% 110%

Ireland 0% 16% 27% 57% 80% 98% 126% 129% 157%

France 0% 9% 10% 14% 21% 29% 37% 31% 37%

Germany 0% 13% 24% 40% 53% 66% 80% 80% 97%

UK 0% 17% 35% 59% 79% 77% 99% 80% 95%

0%

20%

40%

60%

80%

100%

120%

140%

160%

% G

row

th

Europe Luxembourg Ireland France Germany UK

irishfunds.ie

Ireland’s share of European ETFs

-20

-10

0

10

20

30

40

50

60

70

Dec-16 Dec-17 Dec-18 Jun-19

Net Sales into Irish & European ETFs

Irish ETF net sales €bn Rest of Europe ETF net sales €bn

• Ireland has

consistently been the

largest ETF domicile

in Europe, with

around 60% of

European ETF

assets

• And dominates net

sales into European

ETFs

0

100

200

300

400

500

600

700

800

Dec-15 Dec-16 Dec-17 Dec-18 Jun-19

Irish ETFs as % of European ETFs by Assets

Total Irish ETFs €bn Total European ETFs €bn

Source: Central Bank of Ireland, EFAMA

irishfunds.ie

Conclusion

EU Member & Strategically Positioned

+

International Hub for Globally Distributed Investment Funds

+

Unrivalled Experience and Expertise & the Widest Range of Fund Structures

irishfunds.ie

Panel Discussion: Ireland as a Fund Domicile

Ailbhe McManus, EY(Moderator)

Lars Tell, Sector Asset Management

David Bergquist, Volt Capital Management

Björn Wendleby, Harvest

Ian Conlon, Maples

irishfunds.ie

Sverker Åkerholm

BlackRock

Keynote Address: ESG – A Portfolio Manager’s

Perspective

Irish Funds Scandinavia

Seminar:

Sustainable Investments and

ESG

Sverker Akerblom, Director

Senior Portfolio Manager, BlackRock Renewable Power

ICBM0319E-795060-1/23

The world’s largest asset manager with c. $7 trillion under management

Note: Base fees by region data is based on client domicile. Financial results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the

Current Report on Form 8-K furnished on March 22, 2018. Source: BlackRock December 2018

PROFESSIONAL CLIENTS/QUALIFIED INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL 18ALTM0119E-726461-2/12

Broad spectrum of ways to incorporate Sustainable Investing and ESG

Clients motivations often fall into one of two categories: Avoid and Advance

• Avoid is about eliminating exposures to certain sectors or activities

• Advance is about aligning capital with certain behaviors, activities or outcomes

Advance

Source: BlackRock Sustainable Investing, as of August 2018. For illustrative purposes only.

Sustainable Investing

ESG

Thematic

Impact

Exclusionary

Screens

Ex-Fossil Fuels

ESG Optimized

Electric Vehicles

Renewable Power

Avoid


The backdrop – significant change is needed

• Net zero CO2 emissions by 2040 – 2055 to reach

Paris agreement target of 1.5 Co

• Needed to avoid significant negative impact of

climate change

Global Annual CO2 Emissions (bn ton / yr)

Source: IPCC Global Warming 1.5 C, November 2018. There is no guarantee that any forecast made will come to pass.

Mass migration Cost

Conflict

Source: NASA Global Climate Change, Feb 2019


Climate change and the transition to a low-carbon economy is creating

investment risks and opportunities

Reputational – Divestment from fossil fuels

Source: World Bank Carbon Pricing Dashboard, 2018. Graph represents the percentage of global GHG emissions covered by carbon tax and emissions trading schemes.

Regulatory – Carbon Taxes

Source: Bloomberg New Energy Outlook 2018. IEA, Bloomberg NEF. Note: NEO2018 represents the Bloomberg New Energy Outlook 2018 projections.

Source: BlackRock (2016). Adapting Portfolios to Climate Change. BlackRock Investment Institute. Underlying Sources: BlackRock Investment Institute and NOAA National Center for Environmental Information (NCEI), July 2016. Notes: The line shows the number of climate events with losses exceeding $1 billion. The data include droughts, flooding, severe storms, tropical cyclones, wildfires, winter storms and freezes. The bars show the total cost. The data are adjusted for inflation using 2016 dollars.

Physical – Extreme Weather Events

$80

10%

20%

$40

2000

Cu

mu

lati

ve v

alu

e o

f

imp

lem

en

ted

init

iatives ($

bn

)

2005

Sh

are

of g

lob

al a

nn

ual

GH

G e

mis

sio

ns (%

)

1995 2010 2015 2020

Value of implemented carbon pricing initiatives

$81.69 bn

50

$100

150

16250

$200

8

Co

st in

billio

ns

Nu

mb

er o

f even

ts

1980 1985 1990 1995 2000 2005 20152010

Total Cost

Number of events

Carbon taxes and emissions

trading schemes cover a

growing cumulative share of

global CO2 emissions

Sharp rise in frequency

of extreme weather

events causing $1

billion+ in losses

100%

2050203020101970 1990

Historical world power generation mix NEO2018 power generation mix

Oi

lG

a

s

Nuclear

Hydro

W

i

n

d

S

ol

a

r

O

th

er

Technology - Shift from fossil fuels to renewables

Renewables

will capture

64% of the

global

energy mix

in 2050, with

fossil fuels

taking 29%

Source: gofossilfree 1000 divestments and counting, November 2018

0

1

2

3

4

5

6

7

8

9

0

200

400

600

800

1,000

1,200

2013 2014 2015 2016 2017 2018

# In

sti

tutio

ns w

ith

div

es

tmen

t co

mm

itm

ents

AU

M o

f ins

titutio

ns w

ith

div

es

tmen

t co

mm

itments

$trillio

nNumber of institutions

AUM $8 trnThe number of institutions

committing to divesting from

fossil fuels has risen rapidly


BlackRock Renewable Power: Global renewable power platform

Australia

United States

Taiwan

Ireland

Canada

40MW across 4

projects

2,528MW across 94 projects

United Kingdom

1,060MW across 90 projects

Norway

365MW across 2 projects

Sweden


France

169MW across 19

projects


Japan

320MW across 10

projects

110MW across 6

projects


US$5bn and 250+ wind &

solar projects

100+ investors

across 4 funds

Investments across 10

countries, 4 continents

31 investment professionals incl. 6

technical engineers

Onshore Wind Solar Offshore Wind Office location

Source: BlackRock, September 2018. The above referenced investments illustrate all previous investments executed by the Renewable Power team for Global Renewable Power Fund I, Global Renewable Power

II, Renewable Income UK and Renewable Income Europe. It should not be assumed that BlackRock Renewable Power team will invest in comparable investments in the future, or that any future Investments

made will be successful. To the extent that these Investments prove to be profitable, it should not be assumed that future investments will be profitable or will be as profitable. Additional information regarding all of

the underlying investments can be provided upon request. All four funds mentioned above are closed to new investments.


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwjk1JDR4YjeAhXBAewKHRURCOoQjRx6BAgBEAU&url=http://iconbug.com/detail/icon/8008/button-flag-norway/&psig=AOvVaw0G74x8tnSqP_AXgizjXey-&ust=1539703760373142

Driving measurable outcomes reported to investors

1) Based on expected annual production of all Renewable Power investments as of 30 September 2018 across GRP I, GRP II, RI UK an d RI Europe, which are closed to new investors.2) Based on global average emissions intensity from gas -fired power plants, 0.44 metric tonnes of CO2/MWh, IEA World Energy Outlook, November 20173) Based on alternate water use for Combined Cycle Gas Turbine production of 0.835 m3/ MWh

4) Based on global average household electricity consumption, World Energy Council, May 20165) Based on kg/CO2/km emitted by passenger cars and average annual car mileage per country, EC, The International Council on Cle an Transportation, 2017

6) Source: BlackRock Renewable Power using reports from local asset managers. As of 30 September 2018.There is no guarantee that similar investment access will be available in the future.

Impact Metric

Increase renewable power

produced

Displace GHG

emissions

Reduce Water

Usage

Support local

communities

Impact Outcome

11,071,418

MWhs Produced1

4,871,424

Tons of GHG Emissions Avoided2

9,244,634

Cubic Water Meters Reduction3

$25,000,000

of lifetime community benefits6

Impact Equivalent

Powering over 3,221,215 homes for a

full year4Taking over 2,236,293 cars

off the road for a full year5

3,698

Olympic swimming pools of water

saved a year

• Village hall renovation

• Installation of solar panels at local

schools

• Training program for young people

with mental health disorders


Providing clean power to Google & Alcoa in Norway

Source: BlackRock, as of October 2018. Important Information: The above illustration is not meant to be a recommendation to buy or sell any particular security. Images for illustrative purposes only.

The Case Study was selected as the Presenter worked on the transaction. 1) Expected aggregate annual production of the investment divided by average annual electricity consumption per EU household

of 6,036kWh (World Bank, 2015). 2) Alternate water use for Combined Cycle Gas Turbine production of 0.835 m3/ MWh.

ONSHORE WIND:

Revenue: 12-15 years fixed price with Google & Alcoa

Size: 366 MW

Invested Capital: $228m

Clean energy to

84,000 homes1

430 Olympic pools of

water saved every year2


Summary

2

3

1BlackRock has a fully integrated approach to sustainable investments

and ESG ranging from exclusionary screens to impact investments

BlackRock is one of the world’s largest investors into renewable power

driving measurable outcomes to investors

Climate change and the transition to a low-carbon economy is creating

investment risks and opportunities


Risks

Capital at Risk

All financial investments involve an element of risk. Therefore, the value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed.

Past Performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.

You may not get back the amount originally invested. Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase. Fluctuation may be

particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantiall y. Levels and basis of taxation may change from time to time.

Infrastructure Funds: Infrastructure Funds invest exclusively or almost exclusively in equity or debt, or equity or debt related instruments, linked to infrastructure assets. Therefore, the performance of

an Infrastructure Fund may be materially and adversely affected by risks associated with the related infrastructure assets including construction and operator risks, environmental risks, legal and

regulatory risks; political or social instability; governmental and regional political risks; sector specific risks; interest rate changes; currency risks; and other risks and factors which may or will impact

infrastructure and as a result may substantially affect a fund’s aggregate return. Investments in Infrastructure assets are typically illiquid and investors seeking to redeem their holdings in an

Infrastructure Fund can experience significant delays and fluctuations in value.

Tax treatment depends on the individual circumstances of each client and may be subject to change in the future.

Liquidity Risk: The Fund’s investments may have low liquidity which often causes the value of these investments to be less predictable. In ex treme cases, the Fund may not be able to realise the

investment at the latest market price or at a price considered fair.

Valuation Risk: Given the uncertainty inherent in the valuation of assets that lack a readily ascertainable market value, the value of such assets as reflected in the Fund’s net asset value may differ

materially from the prices at which the Fund would be able to liquidate such assets.

Lack of Available Investments: There can be no assurance that the Fund will be able to locate, attain and exit investments that satisfy its investment objec tives, or that the Fund will be able to fully

invest its committed capital.

Restriction on Withdrawal: The Fund is not intended to be a short-term investment and has no certainty of returns. Commitments to the Fund are generally not transferable or redeemable and

Investors will be committed to the Fund for its duration and may not be able to withdraw from their participation prior to the expiry of the Fund.

Redemption Risk: The Fund’s investments are generally illiquid and therefore an investment in the Fund is intended for long-term investors able to accept the risks associated with an illiquid

investment and who are able to commit their funds for the duration of the Fund Redemptions, to the extent they are permitted, may be limited, postponed or altogether suspended in certain

circumstances.

Credit Risk: One of the fundamental risks associated with the Global Infrastructure Debt Program’s investments is credit risk, which is the risk that an issuer will be unable to make principal and

interest payments on its outstanding debt obligations when due. A Fund’s returns would be adversely impacted if a Portfolio Company in which the Fund invests becomes unable to make such

payments when due.


Important Information

PROFESSIONAL CLIENTS/QUALIFIED INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL

This material is for distribution to Professional Clients (as defined by the Financial Conduct Authority or MiFID Rules) and Qualified Investors only and should not be

relied upon by any other persons.

Any research in this document has been procured and may have been acted on by BlackRock for its own purpose. The results of such research are being made

available only incidentally. The views expressed do not constitute investment or any other advice and are subject to change. They do not necessarily reflect the views of

any company in the BlackRock Group or any part thereof and no assurances are made as to their accuracy.

This document is for information purposes only and does not constitute an offer or invitation to anyone to invest in any BlackRock funds and has not been prepared in

connection with any such offer.

© 2019 BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, iSHARES, BUILD ON BLACKROCK, SO WHAT DO I DO WITH MY MONEY

and the stylized i logo are registered and unregistered trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. Al l other trademarks are

those of their respective owners.

27ALTM0119E-726461-12/12

irishfunds.ie

Panel Discussion: Product Distribution via Irish

Structures

Claire O’Brien, RBC Investor & Treasury Services (Moderator)

Sascha Calisan, Northern Trust

Stuart Alexander, Gemini Capital

Oliver Lagerström, MFEX

irishfunds.ie

Kieran Fox

Director of Business Development,

Irish Funds

Closing Remarks

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Kindly hosted by EY

Networking Lunch

31irishfunds.ie

6 November 2019

Irish Funds Stockholm Seminar

irish funds stockholm seminar€¦ · aifm / ucits manco auditor fund depositary fund admin / ta...

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