Magazine article American Banker

GT Global Rides Trend to World Funds

Magazine article American Banker

GT Global Rides Trend to World Funds

Article excerpt

Above William J. Guilfoyle's desk at GT Global hangs a picture of Earth that differs from every other satellite shot of the planet - there are no clouds.

GT Global's business strategy is much the same.

While other fund providers have rushed to expand their product lines, GT Global has stuck to decidedly uncluttered lineup.

Its equity and bond funds are almost entirely international. Fortunately for the company, the timing is just right for products like that.

Thanks to the recent boom in international investing, GT Global's assets under management doubled from $5 billion to $10 billion between July and the end of February.

To be sure, other investment firms have reaped benefits from the international trend. Industrywide, 10% of assets were invested internationally last year, up from 3.5% of assets in 1987 - the year GT Global began selling its products through intermediaries.

But GT Global isn't merely keeping pace with the industry.

GT Global at a Glance

Headquarters   San Francisco
Parent         GT Global
company        Management PLC
Number         16 registered in the
of funds       U.S., 95 worldwide
Bank clients   Barnett Bank.
Include        Chase Manhattan
               Bank, Chemical
               Bank
Assets under   $10 billion
management

Last year, it captured $1 of every $10 that went into global fixed-income funds, said Mr. Guifoyle, senior vice president and director of marketing for GT Global Financial Services.

And some of that money came from bank customers, who are typically latecomers to investment trends.

About 10% of GT Global's business is through banks, and that volume has increased tenfold over the last year, according to the company. Just two years ago, sales through banks were nearly nonexistent.

"Banks are tending to focus on [selling] the more conservative end of the product line," Mr. …

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