World's largest pension funds return to growth

Core Insights - The world's largest 300 pension funds returned to growth in 2023, recovering much of the decline from the previous year, although assets have not yet reached record highs [1][3] Industry Trends - The top 300 pension funds' assets under management (AuM) increased by 10% to $22.6 trillion in 2023, compared to $20.6 trillion at the end of 2022, marking a significant recovery from a 13% decline in 2022 [3] - The top 20 largest pension funds experienced a 12% increase in assets over the past year, with a compound annual growth rate of 5.4% over the past five years, compared to 4.7% for the entire top 300 [4] Fund Characteristics - The Government Pension Investment Fund of Japan remains the largest pension fund globally with AuM of $1.59 trillion, while the Government Pension Fund of Norway closely follows with $1.58 trillion, having grown by 22% in the past year [5] - Defined benefit (DB) funds account for 61% of total disclosed AuM, followed by defined contribution (DC) funds at 26% and reserve funds at 12% [8] Investment Allocations - The top 20 largest pension funds allocate approximately 43% of their assets to equities, 35% to fixed income, and 22% to alternatives and cash, with notable regional differences in asset allocation [9]