When I started work as a junior fund manager, it was hard to find a more attractive sector to invest in than asset management. A growing top line, high margins, stable repeat revenue base, scalable operations, low fixed costs, low capital intensity, and high return on equity made this a great place to invest. In fact, one always had to question why an investor would ever buy shares in a fund if they could buy shares in the manager instead.

The popular conception is that these characteristics still hold true today. Writing in FTfm recently (“Clue to trends found in MA activity”, November 8), Bruce Hamilton and Huw van Steenis of Morgan Stanley opined that “well-run asset managers are some of the most appealing businesses in financial services”.