The assets under management (AUMs) of public pension funds across the globe are set to grow from today’s $20.8 trillion to $24.6 trillion by 2025 and to $33.2 trillion by 2030 due to consolidation and increasing contributions, the Global SWF said in a report.

However, their combined AUMs decreased by $1.3 trillion to $21 trillion year-on-year in 2022 as funding ratios worsened.

“The major challenge of 2022 was the simultaneous and significant (>10%) correction of bonds and stocks, which had not happened in 50 years,” the report added. 

These are paper losses and some of the funds will not see them realised in their role as long-term investors, Global SWF noted.

Compared to 2021, PPFs invested 9% less, with $108.6 billion in 320 deals, the report said.

The top three pension funds with AUMs last year were Japan’s Government Pension Investment Fund ($1.325 trillion), US’ Federal Retirement Thrift Investment Board ($690 billion), and South Korea’s National Pension Service ($608 billion), respectively.

(Editing by Seban Scaria