Total assets of the world’s largest 300 pension funds grew by over 6% in 2013 (compared to around 10% in 2012) to reach a new high of almost US$15 trillion [$16.05 trillion] (up from US$14 trillion in 2012), according to Pensions & Investments and Towers Watson research.
The P&I/Towers Watson Global 300 research, conducted in conjunction with Pensions & Investments, a U.S. investment newspaper, shows that by individual region, Latin American and African funds had the highest five-year combined compound growth rate of over 16% (albeit from a low base) compared to Europe (12%), North America (around 6%) and Asia Pacific (around 5%). The research also shows that the world’s top 300 pension funds now represent around 47% of global pension assets[1].
Australia added one new fund to the survey this year, with HOSTPLUS taking the 290th spot, bringing the total number of Australian funds in the survey to 16. Martin Goss, Senior Investment Consultant for Towers Watson in Australia said despite strong growth in local currency terms, the significant weakening of the Australian dollar over the 2013 calendar year contributed to most Australian funds slipping down the ranking.
“There was a 14% fall in the Australian dollar relative to the U.S. dollar, and that has contributed to Australian funds dropping in this year’s ranking, by six places on average, with only AustralianSuper and UniSuper moving up the rankings (by seven and two places, respectively),” he said.
