World pension assets grow to US$12 trn
2 September 2008

Written by Sophie Baker

The world’s largest 300 pension funds saw total assets grow by over 14 per cent in 2007 to around US$12 trn, according to The P&I/Watson Wyatt global 300 ranking.

The research, conducted jointly by financial consultant Watson Wyatt and US investment newspaper Pensions & Investments, also showed that most major countries recorded increases in assets, and that the size of these assets has more than doubled over five years.

“The world’s largest pension funds continue to benefit from a high profile as global demographic challenges remain front of mind,” commented Carl Hess, global head of investment consulting at Watson Wyatt.

“As a result many large pension funds have prioritised their funding arrangements, helping them to grow despite adverse market conditions in the latter part of last year. These persistent extreme investment conditions have also increased scrutiny on risk management as funds contemplate a new framing of risk in light of the continuing financial crisis and the robustness of their own governance arrangements.”

The US holds the largest market share of pension funds assets with 43 per cent, and the UK, Netherlands and Canada all have the third largest market share of six per cent. Japan hold second place with a 14 per cent market share.

The survey shows that European funds have growth steadily over the last five years, with a compound annual
growth rate of 21 per cent.