16 Key conclusionsEuropean crisis is not over, but concern is very much focused on France & Italy – there is value in an economic adjustment programmeFiscal leniency bargain in return for structural reformsECB is likely to respond with further action, but will likely fall short of full-blown QEStress tests will be important milestone – particularly for Spain and IrelandIn Ireland, a broad-based and sustainable recovery now in evidenceDanger that fiscal policies will be determined by politics rather than economics“We all know what to do, we just don't know how to get re-elected after we've done it”, Jean-Claude Juncker
17 QIAIFS Goodbody/ISEA October 2014 ALISON MANLEY Director of Product SolutionsQIAIFS
18 Everyone is moving to Ireland Alison Manley22 October 2014
20 QIFs become QIAIFs Qualifying Investor Alternative Investment Fund Tax efficient investment vehicle, particularly for real estate.Few investment restrictions.Non-Irish resident investors receive their gains gross.Regulated by the Central Bank of Ireland.Subject to the European Alternative Investment Management Funds Directive.
21 QIAIF service providers Dublin is a global centre of expertiseAlternative Investment Fund Managers (AIFM)Investment ManagersLegal AdvisersTax AdvisersAdministratorsCustodiansValuation AgentsAuditorsCompany Service ProvidersProperty ManagersRegulators
22 QIAIF service providers Dublin is a global centre of expertiseAlternative Investment Fund Managers (AIFM)Investment ManagersLegal AdvisersTax AdvisersAdministratorsCustodiansValuation AgentsAuditorsCompany Service ProvidersProperty ManagersRegulators
23 Some big numbers22,000 The number of people providing services to funds€2.9tr The total net value of funds administered in Ireland40% Ireland’s market share of AIF administration1,848 The number of QIAIFS regulated in Ireland€1.7bn The gross value of property assets we manage in QIAIFs
24 Pensions Goodbody/ISEA October 2014 BRENDAN MCGINN Director of PensionsPensions
25 Goodbody and Pensions ISEA October 2014 Brendan McGinn, Director of Pensions
26 Funding levels increasing. Property back on the agenda TrendsFunding levels increasing.Tax shelter or replacement income?Property back on the agendaIPUTREITsDirectDB schemesClosingVoluntary transfers out of Defined Benefit schemes by former membersOverseas transfers.Social Welfare pensions
27 Goodbody Pensions Business Wish list Budget 2015StabilityCertaintyRemoval of levyRe-establishment of trust?
28 Pillars of retirement provision 4. Earned income in retirement3. Savings & investments2. Private pensionThere are four pillars of provision to deal with this income drop:The State Pension (Contributory)Private pension provisionPersonal savings and investmentsEarned income in retirement, where individual works for a period, possibly part time, in retirement.1. State Pension (Contributory)
29 Service to pension clients Small Self Administered Schemes/ARFsInvestment management , reporting and tax compliance services as an approved Pensioneer Trustee and Qualifying Fund ManagerPersonal Retirement Savings AccountGoodbody Stockbrokers are approved by Pensions Board and Revenue to provide a non standard, self directed portfolio based PRSASelf Directed PensionsThrough our product alliance with Zurich we provide the full range of Self Directed insured pension products for Self Employed, Directors, PRSA, Buy Out Bonds, ARF and AMRFown
30 Financial Planning Goodbody/ISEA October 2014 OWEN REDMOND Head of Financial PlanningFinancial Planning
31 Goodbody Financial Planning Current trends in financial planning:Safeguarding current & future incomeAssetsIncome protectionLife coverPension provisionsEducation Funding for 2nd & 3rd Level feesManaging “Tax Alpha” – this is the yield added to your investment return by good tax management.Deposit vs Gross roll upDirect holdings (Capital Gains) vs Fund (Exit tax)US ETF vs European ETFPension vs Personal
32 Goodbody Financial Planning Current trends in financial planning:Asset migrationAnnual Gifts to beneficiaries – A couple can pass €6,000 per yearOver 10 years the €60,000 could be worth c.€68,780*If passed outside a structured plan the Gift tax would reduce this by c.€22,690Inheritance Tax managementLifetime tax exempt limits have fallenHigh (2009) - €542,544Currently - €225,000Tax rate has increased from 20% to 33%*Growth rate of 3% net of costs rolled up to year 10