With net assets in Irish-domiciled funds reaching €5.8 trillion in early 2026, the Republic of Ireland is recognised as a global centre of funds excellence with expertise ranging from fund administration, transfer agency, and depositary to legal, tax and audit services, stock exchange listing, compliance and consultancy services.According to Irish Funds, the representative body for the sector, there are about 20,000 people employed directly in the funds and asset management industry here, while a 2024 Indecon report put its exchequer contribution at €1 billion.“Ireland’s strength comes from the way it has built expertise, reputation and scale over time,” says Irish Funds chief executive Pat Lardner. “For the investors and investment managers, this means having a breadth and depth of capability across product types. It is the dominant European domicile for Exchange Traded Funds (ETFs), representing approximately 71 per cent of the European ETF market, and has built an unrivalled track record in servicing cross-Border UCITS [Undertakings for Collective Investment in Transferable Securities].”At the same time, the State has emerged as a leading European centre for alternative and private assets, supported by proven servicing models and regulatory certainty. “The introduction of structures such as the Icav [Irish Collective Asset-management Vehicle] and enhanced ILP [Investment Limited Partnership] legislation has reinforced the Republic’s attractiveness for global managers launching sophisticated products,” he adds.The industry thrives on a combination of stable policy, skilled talent, and global connectivity, according to Mary Ruane, asset and wealth management leader with PwC Ireland. “Consistent Government support and an innovation-friendly ecosystem – from embracing fintech and embracing innovation like tokenisation – reinforce its [Republic’s] status as a gateway for global asset managers, underpinning decades of robust growth,” she points out.“A deep pool of expertise, across fund administration and custody to legal and broader support – including for a broad range of non-Irish domiciled funds in the public and private assets space – sets Ireland apart,” she adds.Lardner believes there is room for further growth in an already thriving industry. “The dual needs of economies requiring more investment and individuals needing expertise to help them provide for the future means there is global demand for the solutions and services we provide,” he says. “So, there is significant scope for further growth, both internationally and domestically, provided we continue to adapt and evolve our offerings to meet these needs.Irish Funds chief executive Pat Lardner: 'Ireland is well-positioned to benefit from structural shifts in capital allocation.' “Globally, Ireland is well positioned to benefit from structural shifts in capital allocation, particularly in active and passive ETFs and also private market strategies,” he continues. “This reflects Ireland’s established strength in scalable, cross‑Border fund structures and servicing capabilities, combined with growing investor demand for ETF solutions alongside access to long‑term private market assets which offer diversification and different risk/return characteristics.”Ruane agrees, noting that rising areas like private assets, sustainable finance, and digital fund tokenisation promise fresh opportunities. “Domestically, unlocking household savings – with over €170 billion sitting in bank deposits – could boost local fund participation,” she believes. “With EU-led reforms like ELTIF 2.0 [European Long Term Investment Funds] and personal savings and investment accounts and Ireland’s proactive strategy, including the Government’s recent announcements that Ireland will provide for a domestic SIA, the industry can continue to expand in both scale and scope, building on its momentum.”Mary Ruane, asset and wealth management leader, PwC Ireland: 'Targeted improvements will fortify Ireland’s competitiveness.' This is not to say that the industry is without weaknesses or vulnerabilities, however. “Targeted improvements will fortify Ireland’s competitiveness,” says Ruane. “One priority is enhancing retail engagement: simplifying tax rules, for example, by phasing out exit taxes and ‘deemed disposal’ provisions, would encourage Irish savers to invest. Another focus is speed and innovation – ensuring the regulators and legislators keep pace with the required changes in areas like tokenisation and private assets. A failure to do this creates risk for the future of the industry here. Finally, investment in skills, especially in tech and AI, and focusing on financial literacy across a younger population will help sustain the talent pipeline essential for future growth.”The need to encourage Irish savers to invest is also acknowledged by James Costello, head of the portfolio management group at Davy. “Ireland’s status as a global centre for funds is unquestioned, yet domestic engagement with regulated investment products has not always matched our international success. That imbalance is now being recognised. Increased policy focus and closer collaboration across the industry are helping to strengthen long-term saving and investment at home. A healthier domestic funds ecosystem will not only benefit Irish savers but also reinforce Ireland’s credibility and resilience as a leading international funds domicile.”Looking to the future, Lardner says continued success is by no means guaranteed. “Past performance is no guarantee of future success,” he adds, echoing the investment product health warning. “To maintain and enhance its competitive position, Ireland must continue to champion regulatory excellence without complacency, ensuring investor protection while enabling innovation. A strong, predictable and well-resourced regulatory, legal and policy environment will remain a vital enabler, particularly for emerging areas such as tokenisation, active ETF strategies and private markets.”Continuous adaptation will be key, according to Ruane. “We must implement forward-looking reforms and the vision set out in the Funds Sector 2030 Review – streamlining tax reforms and unlocking retail investment, embracing digital asset infrastructure, and advancing green finance, underpinned by innovation and AI. Deepening collaboration between Government, the regulator, and industry will keep Ireland agile amid global competition. Ultimately, staying true to the sector’s hallmarks – innovation, responsiveness, and high standards – will ensure Ireland remains a top-tier funds centre well into the future.”Lardner also emphasises the importance of collaboration. “Above all, sustained success will depend on agile collaboration between industry, regulators and policymakers, to ensure Ireland remains not only a successful funds domicile, but a future-ready global centre of excellence for investment funds and asset management.”