Only 5 from Germany: These 300 pension institutions manage the largest assets

The world's 300 largest pension funds reached a new record of USD 24.4 trillion in total assets under management in 2024. This is a result of this year's "Global Top 300 Pension Funds" by the Thinking Ahead Institute in cooperation with Pensions & Investments, a US investment publication.

This year's total value breaks the previous record of $23.6 trillion set in 2021, before a market correction in 2022. However, as the recent recovery reached record levels, growth slowed slightly, rising 7.8 percent in 2024 compared to 10 percent the previous year. The previous survey showed $22.6 trillion under management.

Concentration also continues. For the first time, the total assets of the world's top 20 pension funds exceeded $10 trillion, rising 8.5 percent year-on-year to $10.3 trillion. These top 20 funds grew faster than another 290 pension funds and now account for 42.4 percent of total assets.

New leader and AI

All top ten funds reported expanding their expertise in artificial intelligence, with nine highlighting the adoption of technology in portfolio management as a strategic priority and viewing AI as both a risk and an opportunity. At the same time, nine pension funds cited volatility and uncertainty as their main concerns, with inflation also highlighted as an important factor in the outlook for the year.

At the top of the table, Japan's Government Pension Investment Fund (GPIF) was overtaken by the Norwegian Government Pension Fund after more than 20 years at the top. The Norwegian Government Pension Fund has total assets of USD 1.77 trillion, making it 6.9 percent larger than the former global leader.

“Last year, pension assets reached their highest level ever, after several years of slowing growth following the previous record in 2021,” said Jessica Gao, director of the Thinking Ahead Institute, commenting on the study’s findings.

According to the study, the top 20 invest an average of 53.2 percent in equities. Fixed income accounts for 28.8 percent, and alternatives for 18 percent. Remarkably, 150 funds originate from the US alone, accounting for 47.2 percent of total assets. The Asia-Pacific region accounts for 25.5 percent, and Europe for 23.7 percent.

First fund from Germany ranked 37th

The largest German representative in the Top 300 is Bayerische Versorgungskasse (Bavarian Pension Fund) at number 37 with approximately USD 121 billion in assets under management. Other pension funds included VBL (number 151, USD 39.6 billion), BVV (number 168, USD 35.5 billion) , Daimler (number 250, USD 22.8 billion), and BWVA (number 283, approximately USD 22.1 billion).

"Pension funds operate in an increasingly complex environment. Macroeconomic volatility, geopolitical shifts, and concentrated market risks are altering return expectations. The current situation has tested even well-diversified portfolios and highlighted the difficulties of today's investment environment. At the same time, funds face more demanding relationships with their stakeholders, from regulators to sponsors to members, all of whom have higher expectations for pension management. These intersecting challenges increase the responsibility of trustees and make strong governance more important than ever," adds Gao.

Defined-contribution funds continue to grow, but the challenge of converting savings into a secure lifelong income remains, according to the study authors. Many funds are exploring new avenues, but stability, appropriateness, and affordability are difficult to reconcile in different regulatory and social contexts.

Technology is another force. Many funds are increasing their budgets for digital solutions to strengthen oversight, risk management, and long-term decision-making. AI, in particular, is emerging as an enabler and a new source of risk that requires careful governance and strict controls.