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Buy buy buy! Sell sell sell!
When many people think of the funds industry, this is the image that comes to mind: traders on a floor.
For others, it’s much more prosaic, and they think of a boring job slumped over a desk looking at spreadsheets.
But neither version quite matches the reality, which is that the industry offers a range of rewarding career paths, for people from all sorts of backgrounds.
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Colm McDonagh is the chairman of Irish Funds, an industry body representing the sector.
“I didn’t know that much about the industry in my late teens,” he says. “But I was always fascinated by the idea of using money to make an investment and generate a return. I studied business and legal in UCD and specialised in finance as I wanted to get into investment. So I did the milk round [of graduate recruitment] and moved to London.
“I was a trainee, a graduate, and worked on the emerging markets desk, working with clients across the developing world. At the time, this included China, Mexico and Argentina, among others. We had clients all over the world, and I liked the geopolitical element to it: at the moment, for instance, our industry might be looking at how the crisis impacts asset prices — and how we articulate this to clients.
“Many of the people in the sector have backgrounds in finance, but some of the best investors never went to college.”
The funds sector has had a growing presence in Ireland for about three decades, and we are now the third largest domicile in the world for funds — with the industry keen to grow further, says Donna Noonan, IFS Skillnet network manager. IFS Skillnet is a national network of partner associations and companies operating in the international financial services industry in Ireland.
“There are the traditional roles, like funds manager, and we have courses that are specific to that, which we run in conjunction with the Institute of Banking,” she says.
“In 2022, we did a big report into the skills needs of the financial sector, and they include frontline asset management skills, digital skills, crypto, blockchain, risk, regulation and compliance. One of the most popular courses at the moment is a professional diploma in sustainable finance for compliance professionals. There is also a demand for people with fintech knowledge, or audit skills.
“There’s also a great course at DCU, the certificate in financial intelligence and technology, which is composed of four microcredentials that can be taken over a number of years. They each run over nine weeks, in the evening, and although attendance is encouraged, the classes are all recorded.”
“Many of the professional diplomas count towards continuous professional development roles. Or, for people who are looking to get fresh into the industry, there are financial services apprenticeships at the National College of Ireland, which can be valuable for school leavers and for career switchers. The great benefit of the apprenticeships, of course, is that you earn money while you learn.”
Noonan and McDonagh stress that the sector is not closed to graduates from business or commerce backgrounds: data analytics, maths or even arts graduates can make a valuable contribution.
The funds industry is all about protecting and growing a client’s money and it is a highly regulated industry.
“Let’s say you have €1,000 to invest, and you want medium risk,” McDonagh says. “So you go to an asset manager, and they find a fund with the characteristics of what you want. Then the money is transferred to a funds administrator. Then there are investment teams who do daily evaluations, people who decide whether to buy or sell certain assets, people who communicate with clients, project managers, compliance experts to ensure your money is protected.”
About 45 per cent of the asset management and global financial firms in Ireland are based outside Dublin, and many of these are partnered with local universities and technological universities to ensure a pipeline of talent and skills.
McDonagh says that there is a particular demand for tech talent and great opportunities for people in this area. He anticipates that artificial intelligence — already vital to the sector — will grow further in the coming years, leading to efficiency gains as workers gain time to be more productive.
“We want to dispel the myth that a commerce or finance degree is always needed. Yes, you may need a mathematical background for investment risk, but a good degree is a foundation that can allow people to fill in the gaps through further learning. A geography or a politics degree, for instance, could be a perfect fit. What matters is being curious, focused and motivated.”
Working in the industry means being a custodian of someone else’s money, says Noonan. “There is a big push towards more responsible, more earth-friendly investment, so whether you are looking after funds for a person or a company, it is a rewarding career in one of the world’s top three countries for funds, and where there is a big push to be number one.”
- For more information on courses, see iob.ie and microcreds.ie
Case study: BNP Paribas
“BNP Paribas Group is present in more than 60 countries with almost 185,000 employees and is a leader in international financial services. BNP Paribas Ireland has been in Ireland for more than 50 years and today we employ more than 550 people between our Dublin and regional offices in Galway,” says Joy Kiely, head of Ireland, BNP Paribas, securities services and chief executive, BNP Paribas Fund Administration Services (Ireland) Ltd.
“The team offers a full suite of corporate and institutional banking products from origination, deal execution and risk management through to custody, asset servicing and fund administration.
“By leveraging our integrated bank model BNP Paribas offers our clients the full range of corporate and institutional banking products from deal origination through to capital markets execution and asset servicing.
“Today Ireland is the third largest investment fund centre in the world and is regarded as a key strategic regulated international funds domicile by the world’s leading asset managers and funds service providers.
“This sector is a hugely successful one and is a key contributor to the Irish economy. It is a fast-growing and an evolving industry which brings a variety of career and personal development opportunities.”
With jobs available throughout Ireland, Kiely says that the breadth of the sector’s activities, and its geographic reach, is a huge part of the appeal it holds for those looking for a career in the fund industry.
“The Irish fund industry employs a wide range of highly skilled individuals in Ireland who provide specialist services to enable the establishment, administration, and oversight of both Irish and non-Irish domiciled funds.
“[There are] over 17,000 funds professionals in Ireland, [which] is recognised as a centre of excellence and regarded as a key location by the world’s leading players.
“With the evolving regulatory landscape and increased levels of operational complexity the need for ongoing investment in training and development is critical to keep the skills of the workforce up to date as the world transforms faster than ever before.
“BNP Paribas in Ireland strives to be a rewarding place of work that marries professional development and a vibrant work culture with sustainability, and we offer multiple opportunities for transversal and international mobility within the group,” says Kiely.