The Thinking Ahead Institute Global Pension Assets Study 2024: Global Asset Owners with $170 Trillion AUM, Top 7 Pension Countries $50.8 Trillion AUM, Top 3 Largest United States $35.6 Trillion, Japan $3.3 Trillion, United Kingdom $3.2 Trillion, Top 7 Pension Asset Allocation in Equity 42%, Bonds 36%, Cash 3%, Others 20%
10th May 2024 | Hong Kong
The Thinking Ahead Institute has released The Thinking Ahead Institute Global Pension Assets Study 2024, providing key insights into global pension funds countries, portfolio allocation, market share & growth. In 2023, the Top 7 Pension (P7) Countries total AUM is $50.8 trillion and the Top 22 (P22) Pension Countries total AUM is $55.6 trillion. The Largest Pension Country is United States $35.6 trillion, 2nd Largest Pension Country is Japan $3.3 trillion and 3rd Largest Pension Country is United Kingdom $3.2 trillion. Top 3 Pension Country Market Share of P22 in 2023 – 75.8% (United States 63.9%, Japan 6.1%, United Kingdom 5.8%). Global Asset Owners Total AUM – $170 trillion, Strictly Defined (Pension Funds) AUM $59.7 trillion, Assets Owner Loosely Defined (Mutual Funds & ETFs) AUM $60.1 trillion, Insurance Funds AUM $35.7 trillion, Sovereign Wealth Funds AUM $12.3 trillion, Endowments & Foundations AUM $2.1 trillion. Pension Funds Reference Portfolio Return (60% Equity / 40% Debt) Annualized – 1-Year +16.6%, 5-Year +7.7%, 10-Year +5.4%. Top 7 (P7) Pension Overall Asset Allocation in 2023 – Equity 42%, Bonds 36%, Cash 3%, Others 20%. Top 7 (P7) Pension Asset Allocation in 2013 (10 years ago) – Equity 43%, Bonds 28%, Cash 3%, Others 26%. Top 7 (P7) Pension Asset Allocation in 2003 (20 years ago) – Equity 51%, Bonds 36%, Cash 1%, Others 12%. 4 Key Pension Funds Topics – Macro uncertainty and systemic risk, Increasing influence of governments & politics on pension system, Artificial Intelligence (AI) & technology, Future of pension design. See below for key findings & summary | View report here
“ Global Asset Owners with $170 Trillion AUM, Top 7 Pension Countries $50.8 Trillion AUM, Top 3 Largest United States $35.6 Trillion, Japan $3.3 Trillion, United Kingdom $3.2 Trillion, Top 7 Pension Asset Allocation in Equity 42%, Bonds 36%, Cash 3%, Others 20% “
The Thinking Ahead Institute Global Pension Assets Study 2024: Global Asset Owners with $170 Trillion AUM, Top 7 Pension Countries $50.8 Trillion AUM, Top 3 Largest United States $35.6 Trillion, Japan $3.3 Trillion, United Kingdom $3.2 Trillion, Top 7 Pension Asset Allocation in Equity 42%, Bonds 36%, Cash 3%, Others 20%
The Thinking Ahead Institute has released The Thinking Ahead Institute Global Pension Assets Study 2024, providing key insights into global pension funds countries, portfolio allocation, market share & growth. See below for key findings & summary | View report here
The Thinking Ahead Institute Global Pension Assets Study 2024
Summary:
- Top 7 Pension Countries AUM – $50.8 trillion
- Top 22 Pension Countries AUM – $55.6 trillion
- Largest Pension Country – United States $35.6 trillion
- 2nd Largest Pension Country – Japan $3.3 trillion
- 3rd Largest Pension Country – United Kingdom $3.2 trillion
- Top 3 Pension Country Market Share of P22 in 2023 – 75.8% (United States 63.9%, Japan 6.1%, United Kingdom 5.8%)
- Global Asset Owners Total AUM – $170 trillion
- Strictly Defined (Pension Funds) AUM – $59.7 trillion
- Assets Owner Loosely Defined (Mutual Funds & ETFs) AUM – $60.1 trillion
- Insurance Funds AUM – $35.7 trillion
- Sovereign Wealth Funds AUM – $12.3 trillion
- Endowments & Foundations AUM – $2.1 trillion
- Pension Funds Reference Portfolio Return (60% Equity / 40% Debt) Annualized – 1-Year +16.6%, 5-Year +7.7%, 10-Year +5.4%
- Top 7 (P7) Pension Overall Asset Allocation in 2023 – Equity 42%, Bonds 36%, Cash 3%, Others 20%
- Top 7 (P7) Pension Asset Allocation in 2013 (10 years ago) – Equity 43%, Bonds 28%, Cash 3%, Others 26%
- Top 7 (P7) Pension Asset Allocation in 2003 (20 years ago) – Equity 51%, Bonds 36%, Cash 1%, Others 12%
- 4 Key Pension Funds Topics – Macro uncertainty and systemic risk, Increasing influence of governments & politics on pension system, Artificial Intelligence (AI) & technology, Future of pension design
The Thinking Ahead Institute Global Pension Assets Study 2024
1) Pension Funds AUM & Market Share
2023 AUM
- Top 7 Pension Countries AUM – $50.8 trillion
- Top 22 Pension Countries AUM – $55.6 trillion
- Global Asset Owners Total AUM – $170 trillion
Top 3 Market Share of P22 in 2023 (75.8%)
- United States – 63.9%
- Japan – 6.1%
- United Kingdom – 5.8%
Rest of P22 (19 Countries) – 23.2%
Top 7 (P7) Market Share of P22 in 2023 (91.3%)
- United States – $35.6 trillion
- Japan – $3.3 trillion
- United Kingdom – $3.2 trillion
- Canada – $3.1 trillion
- Australia – $2.4 trillion
- Netherlands – $1.7 trillion
- Switzerland – $1.3 trillion
Pension Funds AUM Market Share
- Top 20 Pension Funds – 17% of Global Pension AUM
- Top 300 Pension Funds – 41% of Global Pension AUM
Type of Asset Owners AUM
- Strictly Defined (Pension Funds) – $59.7 trillion
- Assets Owner Loosely Defined (Mutual Funds & ETFs) – $60.1 trillion
- Insurance Funds – $35.7 trillion
- Sovereign Wealth Funds – $12.3 trillion
- Endowments & Foundations – $2.1 trillion
- Total AUM – $170 trillion
Pension funds, sovereign wealth funds and endowments & foundations qualify as asset owners. Mutual funds 7 insurance funds partly qualify as asset owners.
Asset owner has 4 qualifying characteristics:
- Works directly for a defined group of beneficiaries / savers / investors as the manager of their
assets in a fiduciary capacity under delegated responsibility - Works with a sponsoring entity (government, government affiliate, company or not-for-
profit) - Works within explicit law and possesses an implicit societal license to operate because of
its societal trust and legitimacy - Delivers mission-specific outcomes to beneficiaries and stakeholders in the form of various
payments or benefits into the future
2) Pension Funds Asset Allocation
Pension Funds Reference Portfolio Return (60% Equity / 40% Debt) Annualized:
- 1-Year: +16.6%
- 5-Year: +7.7%
- 10-Year: +5.4%
- 20-Year: +6%
P7 Overall Asset Allocation in 2023:
- Equity – 42%
- Bonds – 36%
- Cash – 3%
- Others – 20%
P7 Countries Asset Allocation in 2023 – Equity / Bonds / Cash / Others:
- United States – 46% / 34% / 2% / 18%
- Japan – 25% / 56% / 4% / 14%
- United Kingdom – 26% / 58% / 2% / 14%
- Canada – 31% / 25% / 2% / 43%
- Australia – 51% / 14% / 11% / 24%
- Netherlands – 27% / 46%. 4% / 14%
Switzerland – 30% / 32% / 4% / 34%
P7 Asset Allocation in 2013 (10 years ago):
- Equity – 43%
- Bonds – 28%
- Cash – 3%
- Others – 26%
P7 Asset Allocation in 2003 (20 years ago):
- Equity – 51%
- Bonds – 36%
- Cash – 1%
- Others – 12%
3) Pension Funds AUM Growth in 2023 / 2013 / 2003
P7 AUM 20 Years Growth – 2003 / 2013 / 2023 (Every 10 years)
- United States – $9.9 trillion / $20.2 trillion / $35.6 trillion
- Japan – $2.9 trillion / $3.1 trillion / $3.3 trillion
- United Kingdom – $1.2 trillion / $2.8 trillion / $3.2 trillion
- Canada – $1 trillion / $2.5 trillion / $3.1 trillion
- Australia – $424 billion / $1.7 trillion / $2.4 trillion
- Netherlands – $614 billion / $1.3 trillion / $1.7 trillion
Switzerland – $355 billion / $809 billion / $1.3 trillion
4) Top 22 Pension Countries AUM, Market Share & Growth
Top 22 Pension Countries AUM in 2023
- United States – $35.6 trillion
- Japan – $3.3 trillion
- United Kingdom – $3.2 trillion
- Canada – $3.1 trillion
- Australia – $2.4 trillion
- Netherlands – $1.7 trillion
- Switzerland – $1.3 trillion
- South Korea – $1.1 trillion
- Germany – $596 billion
- China – $423 billion
- Mexico – $381 billion
- Finland – $284 billion
- Malaysia – $278 billion
- Brazil – $272 billion
- Italy – $243 billion
- South Africa – $243 billion
- India – $241 billion
- Hong Kong – $216 billion
- Chile – $199 billion
- Ireland – $172 billion
- France – $155 billion
- Spain – $43 billion
Total – $55.6 trillion
P22 Market Share of P22:
- United States – 63.9%
- Japan – 6.1%
- United Kingdom – 5.8%
- Canada – 5.6%
- Australia – 4.4%
- Netherlands – 3.1%
- Switzerland – 2.4%
- South Korea – 2%
- Germany – 1.1%
- China – 0.8%
- Mexico – 0.7%
- Finland – 0.5%
- Malaysia – 0.5%
- Brazil – 0.5%
- Italy – 0.4%
- South Africa – 0.4%
- India – 0.4%
- Hong Kong – 0.4%
- Chile – 0.4%
- Ireland – 0.3%
- France – 0.3%
- Spain – 0.1%
Total – 100%
Highest Assets / GDP Ratio:
- Netherlands – 159%
- Switzerland – 150%
- Canada – 146%
- Australia – 145%
- United States – 132%
- United Kingdom – 96%
- Finland – 93%
- Japan – 80%
- Malaysia – 64%
- South Korea – 64%
- South Africa – 63%
- Chile – 57%
- Hong Kong – 56%
- Ireland – 28%
- Mexico – 21%
- Germany – 13%
- Brazil – 12%
- Italy – 11%
- India – 6.5%
- France – 5.1%
- Spain – 2.7%
- China – 2.4%
Total Assets (AUM) Annualized Growth:
- 1-Year – 11%
- 5-Year – 6.1%
- 10-Year – 4.5%
- 20-Year – 6%
5) 4 Key Pension Funds Topics
- Macro uncertainty and systemic risk
- Increasing influence of governments & politics on pension system
- Artificial Intelligence (AI) & technology
- Future of pension design
The Thinking Ahead Institute
The Thinking Ahead Institute (TAI) is a not-for-profit research and innovation network motivated to influence the investment industry for the good of savers worldwide and to mobilise capital for a sustainable future. Since its establishment in 2015, almost 90 investment organisations have collaborated to bring this vision to light through designing fit-for-purpose investment strategies, working towards better organisational effectiveness and strengthening stakeholder legitimacy.
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