The world’s largest asset owners have hit a new high, with 100 of the top owners now responsible for $25.7 trillion dollars, according to new research from Willis Towers Watson Thinking Ahead Institute.
The Asset Owner 100 is the fifth study by the Thinking Ahead Institute that gathers data from some of the largest asset owners around the world. Of the 100 asset owners, the top 20 are responsible for the bulk of the assets, at $14.1 trillion. The Government Pension Investment Fund of Japan is the largest asset owner in the world, at $1.7 trillion, followed by the two largest sovereign wealth funds: Norges Bank Investment Management at $1.4 trillion, and the China Investment Corporation at $1.2 trillion.
“These big asset owners control the world’s most influential capital and hold great responsibility and growing influence in relation to their beneficiaries, and to a widening group of stakeholders,” said Roger Urwin, co-founder of the Thinking Ahead Institute.
“The research highlights that many of these asset owners act as universal owners — long-term, leadership-minded holders of portfolios that are exposed to the entire market and economy — and have a distinctive opportunity to contribute to real-world systemic change by contributing to a Paris-aligned future, consistent with net-zero emissions by 2050,” he continued.
The research, in its fifth year, reveals total assets among the largest organizations have grown by 9% from end of 2021, down from 16% growth over the previous year.
The study found that pension funds remain the single biggest group of asset owners, controlling 56% of total assets and dominating in the North America and Asia-Pacific regions, although this has fallen from 58% the previous year. By contrast, sovereign wealth funds have seen their share rise comfortably above one-third, to 37%, up from 35% the previous year.
North American AUM gradually increased compared to last year’s study, now overtaking AUM from Europe, the Middle East, and Africa. The SAFE Investment Company, a sovereign wealth fund in China, gained the most assets and moved up in ranking from eleventh to fourth place. The Japanese Government Pension Fund and the China Investment Corporation both maintained their rankings of first and third, respectively.
The Federal Retirement Thrift, which administers the Thrift Savings Plan (TSP), ranked number seven on the list with $774,176. The TSP, regarded as the world’s largest defined contribution (DC) plan, recently reported a drop in its millionaires for 2022, with a fall of about 42% compared to last year.
Top 20 asset owners (US$ millions)
- Government Pension Investment: $1,730,900
- Norges Bank Investment Management: $1,402,000
- China Investment Corporation: 1,222,000
- SAFE Investment Company: $980,000
- Abu Dhabi Investment Authority: $829,000
- National Pension: $797,968
- Federal Retirement Thrift: $774,176
- GIC Private Limited: $744,000
- Kuwait Investment Authority: $738,000
- APG: $630,358
- Hong Kong Monetary Authority Investment Portfolio: $587,000
- California Public Employees: $496,820
- Public Investment Fund/Sanabil Investments: $480,000
- Qatar Investment Authority: $445,000
- Canada Pension: $426,746
- National Social Security: $406,787
- Central Provident Fund: $374,990
- Mercer: $370,168
- CDPQ: $329,000
- California State Teachers: $313,940
SEE ALSO:
- World’s Largest Pension Funds Hit Record Assets
- Public Pensions Facing Largest Single-Year Decline Since 2009
- A New Record for Global Pension Assets in 2021
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.