Many of the world’s most powerful investment institutions are shifting into alternative assets
The inaugural edition of Global Public Pensions, sponsored by Citi and Capital Group, builds on the seven-year track record of OMFIF’s benchmark Global Public Investor annual report and aggregates the portfolios of 100 leading global public pension funds.
In total, global public pensions have more than $17tn of assets under management – more than twice as much as sovereign wealth funds, according to OMFIF research. This new report captures 77% of those investable assets.
The research reveals that:
- Public pensions are continuing their long-term shift away from fixed income into equities and alternatives, based on a sample of 100 asset allocations making up 77% of investor group assets
- Listed equities now make up 33% weighted average of total assets; real assets and private equity are at 7.7% and 5.4% respectively
- Only 42% of public pension fund assets remain in fixed income instruments on a weighted average basis. The median portfolio holds only 25% of assets in fixed income
- The average actuarial return target among sample has decreased between 2015-19 but remains higher than returns. Most of the decline coming from revised inflation assumptions.
The report also features analysis from decision-makers in state pension funds from across Europe, Asia, and North America. OMFIF describes how these institutions are ‘at the intersection of demographic change, technological upheaval, and tumultuous investment landscape’.
GPP interactive databank
OMFIF offers a comprehensive interactive online databank available as a practical resource on asset allocation and return trends.
Comprehensive data analysis ranks the total assets and rate of return for all pension funds featured in the publication, breaking down holdings into different asset classes.
Enter your details to receive complimentary access to both GPP 2020 and the interactive databank. Databank access will be delivered by email.