The Link (ASX: LNK) share price will be under scrutiny this morning after the $3 billion company announced its entry into the UK pension market.
Link Group is a technology-enabled provider of outsourced administration services for superannuation fund administration, corporate markets and related value added services including data management analytics, digital communication, and stakeholder education and advice. The business has three key divisions: Fund Administration, Corporate Markets and Information, Digital & Data Services (IDDS). Link is the largest provider of services in Australia’s superannuation fund administration industry, which services the fourth largest pension pool in the world based on funds under management. Originally a share registry business within an accounting firm, Link Group listed on the ASX in October 2015 and over the past 10 years has grown its domestic and global operations.
Link’s Entry Into The UK Pension Market
Link announced a strategic global partnership and minority investment in Smart Pension, which is a leading UK workplace pension provider. Two of the other investors in Smart Pension are Legal & General and JP Morgan.
The UK retirement is estimated at US$2.9 trillion, so this partnership provides Link with a large and quick entry into this market and adds to Link’s existing presence in the UK.
Link’s investment in Smart Pension will provide exclusive access in certain areas in Europe and Asia.
Part of the agreement will mean Link takes on the administration of Smart’s UK workplace pension operation including the administration of the Smart Pension Master Trust, which is growing quickly according to Link.
One of the main reasons why Link is attracted to this partnership is the “rapidly growing” UK auto enrolment market and corporate defined contribution market which is similar to the Australian superannuation system.
The system requires all UK employers to automatically enrol their eligible workers into a pension scheme so that it’s now an ‘opt out’ system.
Link Group Managing Director John McMurtrie said: “This partnership with leverage Link Group’s core capabilities and is an example of our strategy to identify attractive adjacent market opportunities aligned with our service strengths with a pathway to future growth.”
Here are 3 stocks I own in April 2020...
Amidst the COVID-19 confusion, there are some companies still growing FAST (think: online meetings through Zoom, streaming companies like Netflix and eHealth services provided by Teledoc).
While the world grapples with COVID-19, some companies are still growing rapidly. The entire cloud computing market is valued around $US210 billion but if you ask me, it seems clear as day that this market is only going to get bigger in 2020 and beyond.
That's why our top investment analyst has just identified 3 growth stocks in a net cash position, with strong competitive forces... and obvious tailwinds at their back. He owns all three of them right now!
Claim a FREE investing report on our analyst's "3 best share ideas for the cloud revolution" when you create a free Rask Australia account.
Our report is 100% free and unlocks hundreds of hours of bonus content.
Disclaimer and warning: This information is published by The Rask Group Pty Ltd and contains general financial advice and information. That means, the information/advice does not take into account your objectives, financial situation or needs. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. Please read our Terms of Service and Financial Services Guide before using this website.
At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.