Fund that tracks accountancy sector

jamezm

Hi there,

Is anybody aware of any investment fund that tracks (or is predominantly made up of companies within) the accountancy sector, UK or worldwide?

Thanks in advance.

James

Sam_J12

Not heard of anything like that. Why would you want to invest in that particular sector?

Malthusian

There aren't enough publicly traded accountancy firms to make such a fund viable. The majority of accountancy firms are privately owned or have a partnership structure, including all of the "Big 4". So they are not open to outside investment.

I used to work for an accountancy firm that, unusually, was publicly listed. It went bust :-)

jamezm

I see, thanks guys.

Looks like a sector that is going to do really well in the next few years (global accounting standards are changing in 2019, so big corporates are going to be spending huge amounts of money on consultancy advice and support leading up to the change, and, thereafter will probably need outside help as buffer for the extra workload on an ongoing basis).

atush

Just as well 2 of my boys who i put thru Uni are working for big 4 accountancy firms then?

bowlhead99

jamezm wrote: »

I see, thanks guys.

Looks like a sector that is going to do really well in the next few years (global accounting standards are changing in 2019, so big corporates are going to be spending huge amounts of money on consultancy advice and support leading up to the change, and, thereafter will probably need outside help as buffer for the extra workload on an ongoing basis).

As mentioned above, nearly all of the major accounting firms, like a great many of the law firms, are private partnerships and not investible.

But importantly, accounting standards change and evolve over time so every year there are new changes and challenges. You are right that when there are changes to any regulations, it's good to be a consultant. However, there's always stuff to consult on.

As far as I know there's no massive world game-changer coming in 2019 but happy to be corrected. If there is, I'd be interested to hear what, as I probably ought to have heard of it, working in accounting myself.

theGrinch

The irony of RSM Tenon and Vantis giving business advice as they go bust. Grotesque swines, no offence (tom) Malthusian.

grey_gym_sock

atush wrote: »

Just as well 2 of my boys who i put thru Uni are working for big 4 accountancy firms then?

would they be interested in selling 1% of their future lifetime earnings to a consortium of MSEers who lack exposure to the accountancy sector? that could give them a chunk of capital to invest in minimally-accountancy-related areas (i.e. just about any mainstream investment), at a time (assuming they are early in their careers) they may have little investible capital relative to their large (and poorly diversified) human capital.

Malthusian

Looks like a sector that is going to do really well in the next few years (global accounting standards are changing in 2019, so big corporates are going to be spending huge amounts of money on consultancy advice and support leading up to the change, and, thereafter will probably need outside help as buffer for the extra workload on an ongoing basis).

If accountancy firms were publicly listed, then this would already be priced into their market value before you found out about it.

If you are trying to make money by speculating on the stock market, the question is not "For what reason will this sector go up over the next year" but "For what reason will this sector go up over the next year that nobody knows about but me". And if you do know something that the millions of other investors have overlooked, you have to make sure it isn't illegal for you to profit from it under insider trading rules.