I think this industry will achieve significant growth this financial year. The main reason for this are the significant inflows that were received before June 30.

Some extracts from a recent article:

MACQUARIE Bank yesterday reported a massive $18 billion inflow into its superannuation fund business in the final three months of the financial year as investors rushed to put as much as $1 million into their accounts before the June 30 deadline.

Macquarie Bank deputy managing director Richard Sheppard said the inflow was some 115 per cent higher - or about $9.5billion higher than the same period the previous year. -

Mr Sheppard said he expected Macquarie's experience was indicative of the broader market.
"Clearly the industry experienced very very strong flows in the June quarter into superannuation products," he said.
"We would expect strong growth figures would also be reported by other market participants.'

The FUA for Funds Mgmt companies will have greatly increased by 30 June, however, the returns from the increased funds will start to be realised this financial year.

The other reasons for my attraction towards this industry are:
- Scalability. Largely a fixed cost base
- Repeating revenue flows every year
- As asset values grow so does the management fee (% of FUA)
- Continued inflows from Super

A risk I see is it may be difficult to repeat the strong performances achieved over the recent years.

I am looking at businesses that have the greatest exposure to funds management. i.e. It is their main activity. What PE do these companies trade on and what do we consider is cheap?

Cheers,

M