Success of Irish Fund distribution at Global Level.

1. Assurance
Asset Management
Review of the global
distribution of Irish UCITS
funds
October 2009
First for business. First for people.

3. Contents
1. Overview of the Irish UCITS market 1
2. Distribution is Key – The Irish UCITS Market! 3
3. Breakdown of the main asset classes for Irish UCITS by region 5
4. Irish UCITS – Equity funds 7
5. Irish UCITS – Bond funds 8
6. Irish UCITS – Money Market Funds 9
7. Irish UCITS – Exchange Traded Funds 10
8. Key domiciles where Irish UCITS funds are distributed 11
9. How PwC can help? 12
10. Contact details 13

4. Overview of the Irish UCITS market
1. Overview of the Irish UCITS Growth of Irish UCITS
800
market
UCITS funds are the ideal vehicle for promoters who
wish to distribute their funds throughout the EU without 700
having to obtain authorisation from each Member State. 2007
The success of the UCITS structure has extended
beyond the borders of the EU and the UCITS brand is 600
now recognised globally as a well regulated investment 2006
product. UCITS funds are distributed heavily in Asia,
the Middle East and South America as well as in 2009
500
Europe. 2008
2005
Ireland is one of the major centres for domiciling
cross border UCITS funds. According to the Irish 400
Euro millions
Funds Industry Association (IFIA), Ireland is the fastest
growing European and UCITS fund administration 2004
centre over the past five years. According to the Central 300
Bank of Ireland and the European Fund and Asset
Management Association (EFAMA), Irish domiciled net Source: Irish Financial Regulator
assets grew by 49% between 2004-2008; the European
average for the same period was 15%. Irish domiciled funds: breakdown by type
Why domicile your UCITS in Ireland? Other
€73.246bn
Did you know … 80% of Irish domiciled funds are
UCITS with a Net Asset Value of EUR 542,559 million in
over 3,000 funds including sub funds as of June 2009,
according to the Irish Funds Industry Association (IFIA)
Bond
and the Irish Financial Regulator? €83.713bn
Money
353 fund promoters from over 50 countries have market funds
established Irish domiciled funds. If non-Irish domiciled €312.791bn
funds are included, over 780 fund promoters use
Ireland as a servicing centre for investment funds. The
Equity
list on the following page shows a number of fund €137.558bn
promoters who have set up Irish UCITS funds.
Hedge
€25.841bn
Source: Financial Regulator, March 2009
Page 1

5. Overview of the Irish UCITS market
Fund Promoters who have set up Irish UCITS funds Alternatives enter the UCITS space
• AIG • GLG • Putnam The UCITS framework has become increasingly diverse
• Allianz • Goldman Sachs • Russell
of the last few years. Most investment strategies are
now possible under the UCITS regime. In fact alternative
• AXA • HSBC • SEI strategies may now be achieved within the UCITS regime
• Barclays • Ignis • Skandia as outlined in the table below. Additionally, within the
current climate an increasing number of hedge fund
• Baring Asset • INVESCO • Thames River managers are looking to set up their funds under the
Management UCITS regime. This is mainly due to the uncertainty
• Janus • Vanguard
• BNY Mellon surrounding the Alternative Investment Fund Managers
• Legg Mason Directive. Many alternative fund managers see the UCITS
• GAM framework as a more suitable route for regulating their
• PIMCO
*All these fund groups have over ten Irish UCITS funds which
funds.
distribute to over ten countries according to Lipper Hindsight as of
July 2009.
Hedge
What is the country of origin of these Irish UCITS UCITS I UCITS III
Funds
promoters?
South Africa, Switzerland,
Australia & Germany 3%
Long
Equity/Bond   
 3%
3%
3%
3% Synthetic
Equity/Bond   
Italy 5%
Ireland 5%
Long/Short*   
UK 41% Leverage**   
Other
Absolute
  
12%
Return
US 25%
Rel Benchmark
Return   
Alpha   
Source: Fitzrovia 2008/2009 * Shorting strategy obtained via synthetic shorting using derivatives
Other countries includes: Belgium, Bermuda, British Virgin ** No absolute leverage limit for sophisticated UCITS using VAR,
Islands, Czech Republic, Denmark, France, Hong Kong, Japan. leverage limit of 200% NAV applies for non-sophisticated UCITS
Netherlands, Norway, Singapore, Spain and Sweden
Page 2

6. Distribution is Key – The Irish UCITS Market!
2. Distribution is Key –
The Irish UCITS Market!
Distribution is paramount to the success of the UCITS
product. Irish domiciled funds are distributed in over 60
countries across Europe, the Americas, Asia and the
Pacific, the Middle East and Africa. The chart below
outlines the key markets in which Irish UCITS are
distributed.
Top markets for Irish UCITS funds
EU
Switzerland
Singapore
Chile
Hong Kong
Other
Channel
Islands
Bahrain
Countries
Peru
0 20 40 60 80 100
% of fund groups
Source: Lipper Hindsight, PwC analysis, July 2009
Other countries includes: Australia, Bahamas, Cyprus,
Gibraltar, Isle of Man, Japan, Macau, Mauritius, Mexico,
Panama, South Africa & the United Arab Emirates.
Page 3

7. Distribution is Key – The Irish UCITS Market!
Our research focused on fund groups in Ireland where Breakdown of EU countries for Irish UCITS
the number of countries which they distribute to is
greater than 5. (58 fund groups match this criteria). All
fund groups sell to one or more European countries i.e. UK
100%. As shown, the top markets for Irish UCITS funds Germany
include countries in all main regions including Europe, France
South America (Peru and Chile), Asia (Singapore and Netherlands
Hong Kong) and the Middle East (Bahrain). The chart Austria
below highlights the main markets by region.
Spain
Italy
Sweden
Luxembourg
Norway
Breakdown of Leading Markets for Irish UCITS
Belguim
Finland
100
Countries
Denmark
80 0 20 40 60 80 100
% of fund groups
60 Source: Lipper Hindsight, PwC analysis, July 2009
Note: Other EU countries that Irish UCITS distribute to include:
Czech Republic, Greece, Poland, Portugal, Slovakia & Slovenia.
40
% of fund groups
20
Netherlands
Hong Kong
Singapore
Sweeden
Germany
Bahrain
Austria
France
Taiwan
Spain
Chile
Peru
Italy
UK
0
EU Asia/ME South America
Source: Lipper Hindsight, PwC analysis, July 2009
Page 4

8. Breakdown of the main asset classes for Irish UCITS per region
3. Breakdown of the main asset Types of assets are sold in Europe
classes for Irish UCITS per region
Our research here is focused on fund groups in Ireland
where the number of countries to which they distribute Money market
funds 15%
to is greater than 5. Of the 58 fund groups matching this
criteria, 43% sell Irish equity UCITS funds to European
Other
countries. The following charts give a percentage 5% Equity
breakdown of the main assets classes for each of the 43%
individual main regions to which Irish UCITS funds are
distributed.
Mixed assets
Europe is the most popular region for Irish UCITS funds 12%
with the greatest number of the 58 fund groups selling
Irish UCITS funds into this region as might be expected.
Asia is the next largest market for Irish UCITS funds, Bond
followed by South America. The Middle East has a much 25%
smaller number of the 58 fund groups selling Irish UCITS
funds into its region in comparison to the aforementioned
regions.
As we can see from the charts, equity is the leading
asset class for all the four main regions; Europe, Asia, the Source: Lipper Hindsight, PwC Analysis, July 2009
Middle East and South America. In the Middle East 50%
of Irish UCITS funds sold into this region are equities. The
percentage breakdown for the equity asset class in the
other regions is as follows; South America (48%), Europe Types of assets sold into Asia
(43%) and then Asia (37%).
Bonds are the next most popular asset class in all the
regions. 31% of Irish UCITS funds sold into Asia are
bond funds. This is followed by 29% in South America
Money market
and 25% for both Europe and the Middle East. funds 17%
The breakdown for the money market asset class is as
follows; in both the Middle East and South America 19% Equity
37%
of Irish UCITS funds sold into these regions are money Other 5%
market funds. This is followed closely by 17% in Asia and
15% in Europe.
Mixed assets
10%
The mixed assets class breakdown for each region is as
follows Europe (12%) and Asia (10%). This asset class
only accounts for 4% in South America and no Irish
Bond
UCITS that sell into the Middle East are classified under 31%
the mixed assets class.
All other asset classes fall under the other category with
the following breakdown; the Middle East (6%), Europe
(5%), Asia (5%) and South America (0%).
Source: Lipper Hindsight, PwC Analysis, July 2009
Page 5

9. Breakdown of the main asset classes for Irish UCITS per region
Types of Irish UCITS sold in the Middle East
“Equity is the
Money market
leading asset
class for all
funds 19%
Other 6%
Equity
the four main
50%
regions; Europe,
Bond
25%
Asia, the Middle
East and South
Source: Lipper Hindsight, PwC Analysis, July 2009 America”.
Types of Irish UCITS sold into South America
Money market
funds 19%
Mixed
assets 4%
Equity
48%
Bond
29%
Source: Lipper Hindsight, PwC Analysis, July 2009
Page 6

10. Irish UCITS – Equity funds
4. Irish UCITS – Equity funds Top markets for Irish equity funds outside the
EU
As mentioned before equity is the leading overall asset Switzerland
class for Irish UCITS funds. The following charts show
Singapore
the main markets for these equity funds in each of the
aforementioned regions.
Other
The main countries in the EU are listed in the chart below
Chilie
with the top five countries being; the UK, Germany, France,
the Netherlands and Austria. Hong Kong
The top markets for Irish equity UCITS funds in Asia Taiwan
include; Singapore, Hong Kong, Taiwan and Macau.
Bahrain
It is also worth noting that Switzerland is also a significant
market for equity funds, in fact it is the largest market for Macau
these types of Irish UCITS funds outside of the EU.
Countries
Peru
In the Middle East the main market for Irish equity UCITS
funds is Bahrain.
In South America, the top markets for these types of funds 0 5 10 15 20 25 30 35
are Chile and Peru.
No of fund groups
Source: Lipper Hindsight, PwC analysis, July 2009
Top markets for Irish equity funds in the EU Other includes: Australia, Bahamas, Cyprus, Gibraltar,
Guernsey, Isle of Man, Japan, Jersey and South Africa
UK
Germany
France
Netherlands
Austria
Italy
Luxembourg
Spain
Sweden
Belgium
Finland
Countries
Norway
0 10 20 30 40 50
No of fund groups
Source: Lipper Hindsight, PwC Analysis, July 2009
Page 7

11. Irish UCITS – Bond funds
5. Irish UCITS – Bond funds Top markets for Irish bond funds in the EU
UK
Bonds are the second most popular asset class for
Germany
Irish UCITS funds. These charts highlight which are the
dominant countries in each of the main regions; Europe, France
Asia, the South America and the Middle East.
Austria
The main countries in the EU are listed in the chart Spain
opposite with the top five countries being; the UK,
Italy
Germany, France, Austria and Spain. It is worth noting
that the top three countries are the same for the equity Luxembourg
asset class as well. Finland
Switzerland is also a big market for bond funds, also Norway
Countries
being the largest market for these types of Irish UCITS Belgium
funds outside of the EU.
Denmark
Similar to the equity asset class again, in South
America, the top markets for these types of funds are
Chile and Peru. The same can be said for Asia, the top
0 5 10 15 20 25 30
markets for Irish bond UCITS funds in Asia include;
Singapore, Hong Kong, Taiwan and Macau, similar to No of fund groups
the equity class. Source: Lipper Hindsight, PwC analysis, July 2009
The most notable difference between the bond and Top markets for Irish bond funds outside the EU
equity asset classes is that unlike equity funds, none
of the Middle Eastern countries make it into our top Switzerland
markets for bond funds. This is due to the fact that
a smaller number of fund groups sell these types of Singapore
funds into countries in this region in comparison to
other countries mentioned in the chart opposite. The Other
main countries in the Middle East for Irish UCITS bond
funds are Bahrain and the United Arab Emirates and are Taiwan
included in the ‘Other’ section.
Hong Kong
Chilie
Macau
Peru
Countries
0 5 10 15 20
% of fund groups
Source: Lipper Hindsight, PwC analysis, July 2009
Other includes: Australia, Bahrain, Gibraltar, Guernsey, Isle of
Man, Japan, Jersey, Mexico, Panama, South Africa and the
United Arab Emirates
Page 8

12. Irish UCITS – Money Market Funds
6. Irish UCITS – Money Market Where are Irish Money Market Funds sold?
Funds
Other UK
Ireland is a leading domicile for money market funds with 12% 13%
EUR 318bn in Irish domiciled money market funds as of
Finland
July 2009. The chart below shows the growth of these 3%
types of funds over the last five years.
Germany
Sweeden
10%
4%
Norway
4%
Growth of Irish domiciled money market funds
Netherlands France
4% 9%
350
Luxembourg
300 5%
Spain
7%
Italy
250
6%
Chile Singapore
200 4% Austria Hong 7%
6% Kong
6%
150
AUM -EUR Bn
Source: Lipper Hindsight, PwC analysis, July 2009
100
Other includes: Australia, Bahrain, Belgium, Denmark, Guernsey,
50 Japan, Macau, Peru, Switzerland and Taiwan
2004
2005
2006
2007
2008
2009
Top markets for Irish money market funds in the EU
0
UK
Source: Irish Funds Industry Association (IFIA)
Germany
Irish UCITS funds which are classified as money market France
funds are distributed to a variety of countries. In the EU
the main markets are the UK, Germany, France, Spain Austria
and Austria. The top three countries are the UK, Germany Italy
and France similar to the bond and equity asset classes.
Outside of Europe the main countries are Singapore, Hong Luxembourg
Kong and Chile. Netherlands
Sweden
Countries
Norway
Finland
0 5 10 15 20
No of fund groups
Source: Lipper Hindsight, PwC analysis, July 2009
Page 9

13. Irish Ucits – Exchange Traded Funds
7. Irish UCITS – Exchange Traded According to our research the main markets for Irish UCITS
ETFs are in the EU, the top four countries are the UK (16%),
Funds Germany (16%), Italy (15%) and the Netherlands (13%). The
main market outside of the EU is Switzerland with 9%.
Ireland is the leading domicile for Exchange Traded Funds
(ETFs) in Europe, with EUR 36bn in assets as of July 2009.
28% of European ETFs are domiciled here. Ireland is the
leading European domicile for internationally distributed ETFs
mainly due to the strong expertise which has been built up
by all the various service providers in this area. Additionally, a
number of Irish fund administrators have customised systems
for servicing these types of funds.
Ireland as a Domicile for ETF’S Where are Irish Exchange Traded Funds (ETFs) sold?
Other
3%
Austria
8%
UK 16%
Switzerland
Ireland 28% 9%
France
Rest of the 10% Germany 16%
world 72%
Luxembourg
10% Italy
15%
Netherlands
13%
Source: Irish Funds industry Association (IFIA), July 2009 Source: Lipper Hindsight, PwC Analysis, July 2009
Other includes: Chile, Peru, Singapore and Sweden
Page 10

14. Key domiciles where Irish UCITS funds are distributed
8. Key domiciles where Irish UCITS funds are distributed
Top 5 countries in the EU where each Irish UCITS asset class/product offering is distributed
Rank Equities Bonds Money Market Funds Exchange Traded
Funds
1. UK UK UK UK
2. Germany Germany Germany Germany
3. France/Netherlands France France Italy
4. Austria Austria/Spain Spain Netherlands
5. Italy Italy Austria/Italy Luxembourg
Top 5 countries outside of the EU where each Irish UCITS asset class/product offering is distributed
Rank Equities Bonds Money Market Funds Exchange Traded
Funds
1. Switzerland Switzerland Singapore Switzerland
2. Singapore Singapore Hong Kong Singapore
3. Chile Taiwan Chile Chile
4. Hong Kong Hong Kong Bahrain/Switzerland Peru
5. Taiwan Chile Macau/Taiwan N/A
Source: Lipper Hindsight, PwC Analysis, July 2009
Page 11

15. How PwC can help?
9. How PwC can help? to develop, implement and maintain cross-border distribution
strategies. Today, through our unique Global Fund Distribution
(GFD) service, PwC remains the market leader of solutions for
Audit Services cross-border fund distribution. Our service includes:
Our audit approach is tailored to suit the size and nature of • Market Strategy
your organisation and draws upon our extensive industry
knowledge. In addition to the independent audit we offer • Market Entry
advisory services in the areas of financial reporting, corporate
• Market Reporting
governance, regulatory compliance, independent controls and
risk assessment. • ETF Listing
Tax & Legal Services • Market Publication
Our Tax and Legal Services formulates effective strategies for • Market Intelligence Monitor
optimising taxes, implementing innovative tax planning and
effectively maintaining compliance. • Distributor Analysis
In recognition of the international tax issues to be considered • Distribution Model Optimisation
in structuring funds, our specialised tax team works
Advisory Services
extensively with our global investment management teams on
an ongoing basis. PwC also provides a full range of business advisory services
for both large organisations and independent advisors
Regulatory Advisory Services
entering the investment fund business. Our business
PwC has a dedicated regulatory and compliance service team advisory services team can assist clients in making strategic
to assist you with all aspects of financial services regulation. assessments of the investment business, preparing business
The regulatory and compliance services team provides plans and economic analyses as well as advising on the
support and advice to help you identify, manage and control structure of both the investment advisor and the underlying
any existing and future regulatory risks. Our services can be fund. The team can also offer advice on systems and
broadly categorised under three main headings: operational needs, identifying and selecting outside vendors
and preparation of full documentation of policies and
• Market entry; feasibility studies, authorisation services, procedures.
governance arrangements, compliance frameworks,
capital adequacy arrangements & notification assistance Our Market Share
Other 1%
• Regulatory risk management Deloitte 4%
• New regulatory obligations
Global Fund Distribution Services
E&Y 15%
PwC has an integrated global network of local experts
coordinated by a dedicated central team supporting all
aspects of your cross-border fund distribution strategy.
PwC 57%
Designing, implementing and maintaining a multi-jurisdictional KPMG 23%
distribution strategy involves a unique set of challenges.
PwC can help with these challenges. We understand the
interconnected processes and specific local and international
resources required for a cross-border strategy to be
sustainable. More than 10 years ago, PwC pioneered a
revolutionary and unique service supporting fund promoters
Source: Ireland Funds Encyclopaedia June 2009/2010
Page 12

16. Contact details
10. Contact details
Olwyn Alexander Vincent McMahon
Tel: +353 1 792 8719 Tel: +353 1 792 6192
Email: olwyn.m.alexander@ie.pwc.com Email: vincent.macmahon@ie.pwc.com
Pat Candon Declan Murphy
Tel: +353 1 792 8538 Tel: +353 1 792 8770
Email: pat.candon@ie.pwc.com Email: declan.g.murphy@ie.pwc.com
Fiona De Burca Damian Neylin
Tel: +353 1 792 6786 Tel: +353 1 792 6551
Email: fiona.deburca@ie.pwc.com Email: damian.neylin@ie.pwc.com
Patricia Johnston Jonathan O’Connell
Tel: +353 1 792 8814 Tel: +353 1 792 8737
Email: patricia.x.johnston@ie.pwc.com Email: jonathan.oconnell@ie.pwc.com
Joanne Kelly Marie O’Connor
Tel: +353 1 792 6774 Tel: +353 1 792 6308
Email: joanne.p.kelly@ie.pwc.com Email: marie.o.connor@ie.pwc.com
Andrea Kelly Ken Owens
Tel: +353 1 792 8540 Tel: +353 1 792 8542
Email: andrea.kelly@ie.pwc.com Email: ken.owens@ie.pwc.com
Page 13
Page 12

17. Contact details
Roshene Pickering Pat Wall
Tel: +353 1 792 6815 Tel: +353 1 792 8602
Email: roshene.pickering@ie.pwc.com Email: pat.wall@ie.pwc.com
Tony Weldon Pat Convery
Tel: +353 1 792 6309 Tel: +353 1 792 8687
Email: tony.weldon@ie.pwc.com Email: pat.convery@ie.pwc.com
Advisory John O’Leary
Tel: +353 1 792 8659
Andy O’Callaghan Email: john.oleary@ie.pwc.com
Tel: +353 1 792 6247
Email: andy.ocallaghan@ie.pwc.com Real Estate
Robin Menzies Enda Faughnan
Tel: +353 1 792 8553 Tel: +353 1 792 6359
Email: robin.menzies@ie.pwc.com Email: enda.faughnan@ie.pwc.com
Tax & Legal Services Regulatory & Compliance Services
Jim McDonnell Deirdre McManus
Tel: +353 1 792 6836 Tel: +353 1 792 7356
Email: jim.mcdonnell@ie.pwc.com Email: deirdre.mcmanus@ie.pwc.com
Page 14

19. This publication has been prepared as a guide only. In the interests of brevity and clarity, detailed information may be omitted which may be directly
relevant to an individual’s or an organisation’s circumstances. Professional advice should always be taken before acting on any information contained
in this publication. Re-publication and dissemination (other than brief quotations with appropriate attribution) is expressly prohibited without prior
written consent.

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