Recent research from Rainmaker has highlighted a staggering scenario – the Australian superannuation system is set to grow to over $9 trillion by 2035!
With the size of the industry hovering around the $2 trillion mark currently, the forecast by Rainmaker paints a picture of a substantial tailwind for both the ASX market and the Australian financial services industry.
Of course not all of this superannuation money will find its way into ASX listed stocks; a significant proportion will be allocated to property, infrastructure, fixed income and cash, while even more "exotic" assets such as gold and art will also receive a share.
However one of the biggest beneficiaries of this pool of funds will almost certainly be global equities, a sector in which many portfolios are vastly under-represented.
With this situation in mind, here are three companies which should be well placed to benefit.
- Macquarie Group Ltd (ASX: MQG): As Australia's leading (and only) global investment bank, Macquarie provides shareholders with exposure to a range of global investment activities such as hedging, banking and funds management. With offices in 28 countries including all the key financial hubs, Macquarie is well positioned to offer its wide range of services to Australian-based clients.
- Magellan Financial Group Ltd (ASX: MFG): An investment manager that specialises in global equities and global listed infrastructure strategies, Magellan boasts over $35 billion in funds under management (FUM). Magellan has an impressive marketing approach which has proved successful in attracting positive fund flows; this will help the firm benefit from the superannuation tailwind and should lead to further growth in FUM.
- Platinum Asset Management Limited (ASX: PTM): With approximately $25 billion in FUM and an enviable long-term track record of strong investment performance in global equities, Platinum has the attributes which should allow it to win further FUM in the future.
