A key attraction of the global money management industry is that successful companies in the sector can enjoy both very high rates of return on capital (not much is required) and an earnings growth rate much higher than the underlying investment returns as additional assets are raised.
It has also been the case in recent years that total industry equity invested assets have grown faster than GDP and world equity indices. Between 1990 and 2009, global equity markets rose by between 2 and 3 times. Over the same period, global conventional assets under management grew by over 6 times. New investable assets have been created by a combination of new businesses being created and coming to market and new disposable wealth being created from a growing population of increasingly wealthy individuals. We expect these trends to continue over the next ten years, creating a favourable environment for companies providing asset management services.
The Guinness Global Money Management Fund aims to give investors an opportunity to capitalise on the increasing value of successful companies in the money management industry.