World’s largest pension funds return to growth
The Global Top 300 Pension Funds report by WTW's Thinking Ahead Institute reveals a 10% increase in assets under management (AuM) for the world's largest pension funds in 2023, reaching $22.6 trillion. This growth erased much of the 13% decline experienced in 2022. The top 20 funds outpaced their smaller peers with a 12% increase in assets and a 5.4% compound annual growth rate over five years.
Japan's Government Pension Investment Fund remains the largest globally with $1.59 trillion AuM, closely followed by Norway's Government Pension Fund at $1.58 trillion. The report highlights regional differences in asset allocation and fund types, with defined benefit funds dominating in North America, Asia Pacific, and Europe.
Il Fondo Pensione del governo giapponese rimane il più grande a livello globale con 1,59 trilioni di dollari di AuM, seguito da vicino dal Fondo Pensione del governo norvegese con 1,58 trilioni di dollari. Il rapporto evidenzia le differenze regionali nell'allocazione delle attività e nei tipi di fondi, con i fondi a prestazione definita che dominano in Nord America, Asia Pacifico e Europa.
El informe sobre los 300 Fondos de Pensiones Globales del Instituto Thinking Ahead de WTW revela un incremento del 10% en los activos bajo gestión (AuM) para los fondos de pensiones más grandes del mundo en 2023, alcanzando 22.6 billones de dólares. Este crecimiento ha borrado gran parte de la caída del 13% experimentada en 2022. Los 20 fondos principales superaron a sus colegas más pequeños con un aumento del 12% en activos y una tasa de crecimiento anual compuesta del 5.4% en cinco años.
El Fondo de Inversión del Gobierno de Japón sigue siendo el más grande a nivel global con 1.59 billones de dólares en AuM, seguido de cerca por el Fondo de Pensiones del Gobierno de Noruega con 1.58 billones de dólares. El informe destaca las diferencias regionales en la asignación de activos y tipos de fondos, siendo los fondos de beneficios definidos los que dominan en América del Norte, Asia-Pacífico y Europa.
WTW의 Thinking Ahead Institute의 글로벌 300 연금 펀드 보고서는 2023년 세계 최대 연금 펀드의 관리 자산(AuM)이 10% 증가하여 22.6조 달러에 도달했다고 밝혔습니다. 이 성장은 2022년에 겪었던 13% 감소를 대부분 만회했습니다. 상위 20개 펀드는 더 작은 동료들보다 높은 12%의 자산 증가율과 5년 동안 5.4%의 복리 연간 성장률을 기록했습니다.
일본의 정부 연금 투자 기금이 1.59조 달러의 AuM으로 여전히 세계에서 가장 큰 규모이며, 노르웨이의 정부 연금 기금이 1.58조 달러로 뒤를 따릅니다. 보고서는 북미, 아시아 태평양 및 유럽에서 확정 급여 펀드가 지배적인 자산 배분 및 펀드 유형의 지역적 차이를 강조합니다.
Le rapport sur les 300 plus grands fonds de pension mondiaux de l'institut Thinking Ahead de WTW révèle une augmentation de 10% des actifs sous gestion (AuM) pour les plus grands fonds de pension du monde en 2023, atteignant 22,6 trillions de dollars. Cette croissance a compensé une grande partie de la baisse de 13% subie en 2022. Les 20 premiers fonds ont dépassé leurs petits concurrents avec une augmentation de 12% des actifs et un taux de croissance annuel composé de 5,4% sur cinq ans.
Le fonds de pension public du Japon reste le plus important au monde avec 1,59 trillions de dollars d'AuM, juste devant le fonds de pension public de Norvège avec 1,58 trillions de dollars. Le rapport met en lumière les différences régionales dans l'allocation des actifs et les types de fonds, les fonds à prestations définies dominant en Amérique du Nord, en Asie-Pacifique et en Europe.
Der Bericht über die Global Top 300 Pensionsfonds des Thinking Ahead Institute von WTW zeigt einen Anstieg von 10% in den verwalteten Vermögen (AuM) der größten Pensionsfonds der Welt im Jahr 2023, die 22,6 Billionen Dollar erreichen. Dieses Wachstum hat einen großen Teil des Rückgangs von 13% im Jahr 2022 wieder wettgemacht. Die top 20 Fonds übertrafen ihre kleineren Kollegen mit einem 12% Anstieg des Vermögens und einer Jahreswachstumsrate von 5,4% über fünf Jahre.
Der staatliche Pensionsfonds Japans bleibt mit 1,59 Billionen Dollar AuM der größte weltweit, gefolgt vom staatlichen Pensionsfonds Norwegens mit 1,58 Billionen Dollar. Der Bericht hebt regionale Unterschiede in der Vermögensallokation und den Fondstypen hervor, wobei die Leistungsfonds in Nordamerika, Asien-Pazifik und Europa dominieren.
- Assets under management for top 300 pension funds increased by 10% to $22.6 trillion in 2023
- Top 20 largest pension funds recorded a 12% increase in assets, outpacing smaller peers
- Top 20 pension funds show a 5.4% compound annual growth rate over the past five years
- Defined benefit funds account for 61% of total disclosed AuM
- Assets of the largest pension funds are still not back to their record highs
- Increasing complexity in the investment landscape due to uncertain macroeconomic environment and geopolitical instability
- High volatility persists in the global economy
- Asset management industry's net-zero commitments are not yet fully formed
Insights
The 10% growth in AuM for the top 300 pension funds to
The report reveals intriguing regional disparities in fund structures and asset allocations. DB funds dominate in North America (
The report's mention of systemic risks and net-zero commitments underscores the growing importance of ESG factors in pension fund management. The acknowledgment that the asset management industry's response to climate challenges is "emergent but unfortunately not yet fully formed" four years after initial commitments suggests a gap between intentions and actions. This lag in ESG implementation could pose both risks and opportunities for investors. Funds that successfully integrate ESG considerations, particularly climate-related strategies, may gain a competitive edge in the long term. Investors should closely monitor pension funds' progress on ESG integration and net-zero commitments as potential indicators of future performance and risk management capabilities.
NEW YORK, Sept. 09, 2024 (GLOBE NEWSWIRE) -- The world’s largest 300 pension funds returned to growth in 2023, erasing much of the decline of the previous year. However, the assets of the largest pension funds are still not yet back to their record highs, according to this year’s Global Top 300 Pension Funds report by leading global advisory, broking and solutions company WTW’s Thinking Ahead Institute.
The research highlights high-level trends in the pension fund industry and provides information on the changing composition of the top 300 list of pension funds globally, including the characteristics and investment allocations of these pension funds.
In 2023, the top 300 pension funds’ assets under management (AuM) recorded an increase of
Growth has remained faster among the biggest funds, as the top 20 largest pension funds in the world recorded an increase in assets of
The Government Pension Investment Fund of Japan remained the largest pension fund in the world, with AuM of
“While it is positive to note a return to growth among the world’s largest pension funds in 2023, the combination of a more uncertain macroeconomic environment and rising geopolitical instability means there is increasing complexity in the investment landscape,” said Jessica Gao, director, Thinking Ahead Institute.
Last year was characterized by the rising inflation and interest rate environment, both of which have since tapered off, but the outlook is by no means certain. Although the first half of 2024 has offered a degree of stability, uncertainty is still high, with volatility persisting in the global economy, heightened by geopolitical developments, including multiple significant elections.
Overall, defined benefit (DB) funds remain the largest share of assets, accounting for
On average, the top 20 largest pension funds invested approximately
“We previously warned of the need to address rising systemic risk,” said Gao, “where an entire system (like climate) malfunctions and puts emphasis on the need for a forward-thinking and re-positioning strategy.
“Since setting the first net-zero commitments in 2020, the asset management industry has faced this challenge under significant time pressure. Four years later, it has developed into a state that is emergent but unfortunately not yet fully formed,” concluded Gao.
Top 20 pension funds (US$ millions)
U.S. fund data are as of September 30, 2023. Non-U.S. fund data are as of December 31, 2023, except where shown.
| Rank | Fund | Market | Total assets |
| 1 | Government Pension Investment | Japan | 1,593,141 |
| 2 | Government Pension Fund | Norway | 1,584,524 |
| 3 | National Pension | South Korea | 801,864 |
| 4 | Federal Retirement Thrift | U.S. | 782,835 |
| 5 | ABP | Netherlands | 552,376 |
| 6 | Canada Pension | Canada | 477,676 (1) |
| 7 | California Public Employees | U.S. | 452,453 |
| 8 | Central Provident Fund | Singapore | 432,509 |
| 9 | National Social Security | China | 364,351 (2) |
| 10 | California State Teachers | U.S. | 309,931 |
| 11 | PFZW | Netherlands | 262,261 |
| 12 | New York City Retirement | U.S. | 247,999 |
| 13 | Employees Provident Fund | Malaysia | 247,268 |
| 14 | New York State Common | U.S. | 246,307 |
| 15 | Local Government Officials | Japan | 226,803 |
| 16 | AustralianSuper | Australia | 204,631 (3) |
| 17 | Florida State Board | U.S. | 194,659 |
| 18 | Ontario Teachers | Canada | 186,897 |
| 19 | Texas Teachers | U.S. | 181,656 |
| 20 | Labor Pension Fund | Taiwan | 176,267 |
- As of March 31, 2024
- Estimate
- As of June 30, 2023
About the Thinking Ahead Institute
The Thinking Ahead Institute was established in January 2015 and is a global not-for-profit investment research and innovation member group made up of engaged institutional asset owners and asset managers committed to mobilizing capital for a sustainable future. It has 52 members around the world and is an outgrowth of the WTW Investments’ Thinking Ahead Group, which was set up in 2002. Learn more at https://www.thinkingaheadinstitute.org/.
About WTW
At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.
Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you.
Learn more at wtwco.com
Media contacts
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eemerman@eaglepr.com
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