Indian pension fund joins world’s top 20 largest schemes

Emerging market pension funds have grown in prominence with the entry of an Indian scheme into the top 20 ranking of the world’s largest schemes.

The Employees’ Provident Fund (India) is the latest scheme from emerging markets to join the top 20 of the largest 300 schemes identified by Willis Towers Watson’s Thinking Ahead Institute.

Roger Urwin, global head of investment content at Willis Towers Watson, said the increased number of the largest funds originating from emerging markets was reflective of a longer-term trend as the schemes made progress in governance structures and resiliency.

A total of four new entrants from emerging market countries have entered the top 20 over the last ten years, three from Asia and one from Africa.

“These countries are especially interesting to monitor as they are typically in the earlier stages of maturity and can continue to adapt and develop their investment models,” Urwin added.

Assets under management (AUM) at the world’s largest pension funds increased in value by 15.1% in 2017, to reach a total of $18.1 trillion. The top 20 accounts for 41% of the total.

Among the top 300 funds, defined contribution (DC) assets increased during 2017 by 17.6% whilst defined benefit (DB) assets grew 13.5%. DB assets accounted for 64.7% of the disclosed total AUM, (down from 65.5% in 2016).

“Whilst the longer-term shift from DB to DC is widely understood and remains unchanged, it is striking that DB assets continue to grow and form the majority of the total assets,” Urwin added.

Rank Fund Market Total Assets
1. Government Pension Investment Japan $1,443,554
2. Government Pension Fund Norway $1,063,456
3. National Pension South Korea $582,938
4. Federal Retirement Thrift U.S. $531,489
5. ABP Netherlands $494,796
6. National Social Security China $456,853
7. California Public Employees U.S. $336,684
8. Canada Pension Canada $283,454
9. Central Provident Fund Singapore $269,133
10. PFZW Netherlands $235,995
11. California State Teachers U.S. $216,193
12. Local Government Officials Japan $209,880
13. New York State Common U.S. $201,263
14. Employees Provident Fund Malaysia $200,265
15. New York City Retirement U.S. $189,794
16. Florida State Board U.S. $167,900
17. Ontario Teachers Canada $150,730
18. Texas Teachers U.S. $146,326
19. Employees’ Provident India $134,272
20. GEPF South Africa $133,944

©2018 funds europe

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