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 |
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