World's largest asset owners reach new record

Global Asset Owners Growth and Trends - The top 100 asset owners globally (AO100) saw a 12.3% year-on-year increase in assets in 2023, recovering from an 8.7% decline in 2022, reaching a record US$26.3 trillion [1] - Sovereign wealth funds (SWFs) manage 38.9% of the AO100 assets, while pension funds hold the largest share by fund type at 51.2%, despite their slower growth rate of 8.9% [2] - SWFs dominate in EMEA, accounting for 70% of total assets in the region, compared to 43% in Asia Pacific and 2% in North America [3] Regional Asset Distribution - EMEA is the largest region in the AO100 study, representing 34.3% of total assets under management (AuM), followed closely by Asia Pacific at 33.0% and North America at 32.7% [5] Top Asset Owners - The Government Pension Investment Fund of Japan remains the largest single asset owner globally with US$1.59 trillion in AuM, followed by Norway's Norges Bank Investment Management (US$1.55 trillion) and China Investment Corporation (US$1.24 trillion) [4] Macro Trends and Challenges - The global investment environment in 2023 was marked by volatility, high interest rates, and mixed performance across asset classes, with central banks implementing gradual rate cuts in the latter half of 2024 [6] - Asset owners are navigating geopolitical risks, major elections, and the use of monetary policy to tackle inflation, requiring a more sophisticated approach to balance financial returns and regulatory compliance [7] - Traditional risk management methods are struggling to keep up with complex, interconnected risks, necessitating new approaches to address systemic risks with limited historical precedent [8] About the Thinking Ahead Institute and WTW - The Thinking Ahead Institute, established in 2015, is a global not-for-profit investment research group with over 55 members focused on improving the investment industry [9] - WTW Investments, with over US$4.7 trillion in assets under advisory and US$187 billion in assets under management, provides expertise in risk assessment, strategic asset allocation, and investment management [10] - WTW offers data-driven, insight-led solutions in people, risk, and capital, serving clients in 140 countries and markets [11]