If you're looking to plan for a comfortable retirement you're not the only one, in fact as at June 2013 the total value of Australia's superannuation assets was estimated at $1.62 trillion, which is more than the entire $1.35 trillion market cap of the Australian stock exchange at the same time.
What's more is that Australia's pool of superannuation assets has been growing much faster than the economy and should continue to do so, meaning much of this vast amount of money will flow back into ASX shares and companies that manage those shares and other superannuation products on behalf of investors.
Businesses to profit include the likes of Perpetual Limited (ASX: PPT) with its aligned interests in investment management, financial planning and advice services. It also offers admin, custody and trustee services for self-managed super investors. For the quarter ending March 31, 2014, the group saw marginally positive inflows to funds under management of $31 billion. It will be expecting better days ahead having reformed its sales and distribution strategy as part of a transformation program that also involved heavy cost-cutting, it's due for completion come 2015, when the full flow on effects to the bottom-line should be realised.
Others with similar exposure include BT Investment Management Limited (ASX: BTT) and IOOF Holdings Limited (ASX: IFL). Challenger Ltd (ASX: CGF) is another high-growth business with a focus on annuity style investing that is trading on an attractive looking price-earnings ratio around 11.
Investors looking for exposure to the growth in super and global equity markets could consider internationally focused fund managers like Platinum Asset Management Limited (ASX: PTM) or Magellan Financial Group Ltd (ASX: MFG).
One other strong trend to watch out for is the growth in ethical investing, where certain investments for example in tobacco, weaponry, pornography or environmentally harmful businesses are not allowed. Australian Ethical Investment Limited (ASX: AEF) shares are up 46% in the last six months with net profit up 150% for the half-year to December 2013. As more money flows into its superannuation and other offerings it's one to watch.
Foolish takeaway
Some of these diversified financials suffered a small sell-off recently as large technology and other blue-chip stocks in the U.S. dipped in valuations and shook listed Australian money managers at the same time. Australian Ethical could be the next high-growth cab off the rank having the twin tailwinds of the growth in super and ethical investing supporting it into the future.
