The Asset Owner 100
The most influential capital on the planet | Thinking Ahead Institute | November 2022

T A I A sse t Own e r 1 0 0

05

03
03

Thinking Ahead

Executive

Institutesummary

03
25

22

15

31

28

Section 1

Section 2

Section 3

Section 4

Section 5

Total value of assets

Pension funds

Sovereign Wealth Funds

OCIOs and Master Trusts

Foundations and Endowments

39

35

33

46

43

Section 6

Section 7

Section 8

Section 9

Section 10

Insurance Companies

State Investment Platforms

Top 20 Asset owners

Universal Owners

Asset Allocation AO 100

51
Section 11

Section 12

Long horizon investing

Full AO 100 Ranking© 2022 Thinking Ahead Institute. All rights reserved.

64

57
Limitations of reliance2T h in kin g Ah e ad In st it u te

The Thinking Ahead Institute
Formed in 2015, the Thinking Ahead Institute is a global not-for-profit research and innovation group whose aim is tomobilise capital for a sustainable future. The Institute’s members comprise around 60 asset owners and asset managers

with collective responsibility for over USD 16 trillion. It is an outgrowth of WTW Investments’ Thinking Ahead Group andmore research is available on its website.

The Thinking Ahead Group research teamTim

Marisa

Roger

Paul

JessicaAndreaIsabella

Anastassia

Hodgson

Hall

Urwin

Deane-Williams

Gao

Caloisi

MartinJohnson© 2022 Thinking Ahead Institute. All rights reserved.

3

T A I A sse t Own e r 1 0 0

T A I A sse t Own e r 1 0 0

The Asset Owner 100
A Thinking Ahead Institute study which provides key insights and trends
on the top 100 asset owners in the world

An asset owner has five qualifying characteristics:▪ Works directly for a defined group of beneficiaries/savers/investors as the manager of their assets

in a fiduciary capacity under delegated responsibility▪ Works with a sponsoring entity (government, government affiliate, company or not-for-profit)▪ Works within explicit law and possesses an implicit societal license to operate because of its
societal trust and legitimacy▪ Delivers mission-specific outcomes to beneficiaries and stakeholders in the form of various
payments or benefits into the future▪ Employs a business model that combines a governance budget (resources and processes) and arisk budget (reflecting the mix of financial assets that delivers on the mission)© 2022 Thinking© 2022Ahead
Thinking
Institute.
Ahead
AllInstitute.
rights reserved.
All rights reserved.

4

T A I A sse t Own e r 1 0 0

Executive summary
Overview and key findings© 2022 Thinking Ahead Institute. All rights reserved.

5Five years of AO 100 report
30000

Evolution by fund type
7.2%

7.1%

7.4%

32.0%

7.1%

32.1%

33.5%

7.4%

34.5%

25000

15000
10000
60.8%

60.8%

59.1%

55.9%

58.4%

16.4%
23,453

20000

36.7%

10,5552018

2019
Pension Fund

2020
SWF

Top 20 aum

OCIO

Distribution by assets
36%

36%
32%

36%
33%

37%
32%

34%
30%

2017

36%

34%

▪

31%

31%

30%

▪
▪

2018

2019

2020

2021

▪

EMEA

North America

9.4%
14,0799.4%

10%
8%

3.8%

2%

4%
0%

2019
Top 100

2020
growth Top 20

2021
growth Top 100

Key takeaways

32%

APAC

14%

6%

0.6%
2018

2017

2021

16%

10,961
6.0%

1.7%

0

25,65812%

12,871
10,49718%

20,147

19,011

18,694

5000

2017

20%

Value of assets and asset growth (US$ bn)
17.4%
Top 20 vs Top 100

Pension funds still dominate, but the proportion of their Assets undermanagement (AUM) has slowly decreased, while SWF's AUM gradually
increased
North American AUM has gradually increased, overtaking EMEA AUM in 2020
The SAFE Investment Company gained the most assets, moving up the ranking
from 11th to 4th
The Japanese Government Pension Investment Fund and the China Investment
Corporation have maintained their rankings of 1st and 3rd respectively

Key figures
E xe cu t ive su m m ary▪ AUM of the top 100 asset owners totaled US$ 25.7 trillion at end2021; growing 9.4% from the previous year
▪ The top 20 assets owners made up 54.9% of total AUM in ranking
in 2021 with US$14.1 trillion▪ The top 5 asset owners accounted for 24.0% of total AUM in ourstudy with US$6.2 trillion▪ The Government Pension Investment Fund (GPIF) of Japanremains the largest asset owner in the world, with an AUM of
US$1.7 trillion▪ Norges Bank Investment Management of Norway (AUM of
US$1.4 trillion) comes in second and China Investment
Corporation (AUM of US$1.2 trillion) in third

Figures to end 2021, unless otherwise stated. New sources of information were used for some countries in 2021.
© 2022 Thinking Ahead Institute. All rights reserved.

7

E xe cu t ive su m m ary

Key figures▪ Asia-Pacific accounts for 36.1% of total AUM in the ranking,making it the largest region in this study▪ The regions of North America and EMEA represent 33.5%
and 30.3% of total AUM, respectively▪ Pension funds manage 55.9%, Sovereign wealth funds
handle 36.7%, and outsourced CIOs and master trusts are
responsible for 7.4% of total AUM in the AO100▪ Pension funds continue to dominate in North America andAsia-PacificFigures to end 2021, unless otherwise stated. New sources of information were used for some countries in 2021.
© 2022 Thinking Ahead Institute. All rights reserved.

8

Asset Owner 100
The most influential capital on the planet | November 2022

Long horizon
opportunity

Continued focus onsustainability

Pensionfunds
56%

OCIOs & mastertrusts7%

Assets byfund type
AU M o f t h e t o p 1 0 0 a s s e t o w n e rst o t a l e d U S $ 2 5 . 7 t r i l l i o n at e n d - 2 0 2 1

L e a d i n g a s s e t o w n e rs h ave t h eo p p o r t u n i t y t o st e p u p , e m b ra c i n g a
n e w p o s i t i o n a n d co m m i t m e n t , t os h a p e t h e f u t u re o f o u r e co n o m i e s ,s o c i et i e s a n d t h e e nv i ro n m e n t

System thinking and multistakeholder mindset

Long horizon investing

Sovereign wealth
funds
37%

9

The top 20 asset owners made up 55% of total AUM
Talent and social capitalT h e l o n g h o r i zo n m i n d s e t i s a ke yfe a t u r e a n d w h e n p re s e n t p ro v i d e s a
ke y co m p e t i t i ve e d ge

Data to end 2021 and figures may not sum due to rounding
Source: The Thinking Ahead Institute

Key
Asset
Owner
themesThis small group of investors are right on the front line of theinvestment community’s fight to become net zeroE xe cu t ive su m m ary

Key industry-wide observations (1)The macro is complex and uncertain:
Uncertainty has been one of the dominant themes in the investment industry in 2022. Heightened
geopolitical tension entangled with slower real economic growth and rising inflation. The likely regimechange, geo-political and systemic risks compound in a VUCA-fest*. Asset owners may no longer expect acredible 3-5% real return and may have to address a period of relatively low returns.

The likely regimechange, geo-politicaland systemic risks
compound in a
VUCA-fest*

Sustainability:
The world’s top 100 asset owners have become more prominent in integrating ESG in pursuit of improved
long-term sustainable returns. This approach will gather strength as regulations reinforce the reportingtransparency and discipline that are critical for this type of investing to be genuinely effective. But fighting
climate change can be just about managing climate risks. Some asset owners are stepping up and moving
beyond the impact of these ESG risks on the portfolio to consider the impact of the portfolio and theassets on the world. This step forward comes from a new mind-set, model and measurement framework,

consistent with the theory and principles of universal ownership. The model shift means employing the 3D

Investing sustainablyreflects asset owners
justifying theirlicense to operate
and a step-up isnecessary to fightclimate change

investment model in which risk, return and real-world impact are integrated.
* VUCA ~ volatile, uncertain, complex, ambiguous© 2022 Thinking Ahead Institute. All rights reserved.

10E xe cu t ive su m m ary

Key industry-wide observations (2)Stakeholders’ increasing demand:
Multi-stakeholders increasingly frame asset owner direction of travel. The stakeholder ask ofinvestment organisations grows in breadth and depth. Societal context has changed, stronger
stakeholders have emerged, investor goals have multiplied and shifted. With a wider range of

Stakeholder management
has become a much bigger
task to address

stakeholders involved, the management of stakeholders becomes a bigger priority.

The mandate transition bar-bells further:
Mandate transitions are evolving in the relatively low-return world with continued growth in private

assets and public asset indexes, as well as private debt and infrastructure. It is also becoming morecommon that indexation adopts active management tilts.

Long horizon investing is maturing:Long horizon mindset can
provide a key competitive edge

Sustainability factors are major new influences on the trend of long horizon investing with governanceand culture being the critical forces. We delve deeper into this topic in the Focus Section.

© 2022 Thinking Ahead Institute. All rights reserved.

11

E xe cu t ive su m m ary

Key asset owner challenges (1)▪ Joined-upness: Alignment of beliefs and vision within an organisation as well as with external
stakeholders could be improved. Communications are layered to meet stakeholder needs, butjoined-upness is difficult.

▪ Governance and fiduciary: Most asset owners are weighed down by governance burdens andfiduciary concerns that reduce their sustainability ambitions.

▪ Systemic risk: Systemic risks in the future are increasingly from climate, environmental andsocial sources. Pricing these risks is near impossible (high uncertainty/low tractability), but it islikely to be orders of magnitude bigger than prior versions. There is a potential for a
global 'polycrisis' where systemic risks combine and synchronise with consequences forrisk amplification and acceleration.

▪ Social capital: Social capital is an investment into future productivity and is central to goodoutcomes. Current hybrid working arrangements appear to have resulted in weakened culture anddeclined social capital. More distant networks have shrunk with associated costs to innovation andcreativity and trust.
© 2022 Thinking Ahead Institute. All rights reserved.

12

E xe cu t ive su m m ary

Key asset owner challenges (2)▪ Technology: Technology is extending its reach/power in the investment industry, withdata analytics, dashboarding and data-judgement interfaces all evolving. But concerns
around data and cyber security are also on the rise.

Asset owners are very challenged
on innovation▪ Talent: While talent is everywhere it is unnecessarily scarce. The aggregate shortages ofand costs of global talent are sky-rocketing while the costs of it showing up anywhere in
the world have just sky-plummeted. In addition, meeting the increased demand fromsustainable investing requires people with T-shaped skills.

▪ Defined benefit (DB) schemes: The most recent liquidity crisis associated with theliability-driven investment (LDI) funds in the U.K. DB market probably has shaken theconfidence of asset owners in other countries. The disruption has raised questions overthe future of DB, with funds maturing and frozen plans.

© 2022 Thinking Ahead Institute. All rights reserved.

13

E xe cu t ive su m m ary

Key asset owner challenges (3)Long horizon investing – the future (future coverage in section 11)
With the macro being complex and uncertain, long horizon investing principles provide a crucial set ofguardrails
Uncertainty has been one of the dominant themes in the investment industry in 2022 from heightened
geopolitical risk and increased volatility, requiring investors to work within a more disciplined framework
With sustainability being a bigger part of the investing model, the time horizons should naturally be
extended to deal with thisSustainability issues often play out over periods spanning several market cycles
With systemic risks being a bigger part of long-term risk, the development of integrated models thatmakes allowance for the differentiated features of systemic risk becomes critical
Investment models have to date been designed around a risk framework that is normally shaped andlinear. It does not line up with systemic risks that are different in being pervasive, inter-connected, andnon-linear, and not capable of being hedged but may be subject to mitigation
With more recognition of the human and governance factors limiting long horizon effectiveness,quantitatively-driven methods, including AI, will have a growing future
Most successful models involve a combination of human and technological intelligence© 2022 Thinking Ahead Institute. All rights reserved.

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T A I A sse t Own e r 1 0 0

Section 1 | Total valueof assets© 2022 Thinking Ahead Institute. All rights reserved.

15

Evolution by fund type

Pension funds dominate the
AO100 and manage 55.9% of

T o t al valu e o f asse t s

10total AUM (US$ 14.3 trillion)
Distribution of total AUM
Sovereign Wealth Funds
7.2%

7.4%

7.1%

7.1%

32.0%

33.5%

32.1%

34.5%

7.4%

36.7%

follow with 36.7% of total
AUM (US$ 9.4 trillion)

Over the last 5-year period
we can observe a trend
60.8%

59.1%

60.8%

58.4%

55.9%

of slow decrease in the
proportion of pension funds'
assets and slight increase in

2017

2018

2019
Pension Fund© 2022 Thinking Ahead Institute. All rights reserved.

2020
SWF

OCIO

2021

the SWF funds' assets in AO

100

16

Annual growth by fund typeT o t al valu e o f asse t s

10

AUM’s growth slowed down
for all types of funds in 2021
11.8%

Sovereign wealth funds

17.6%

4.7%

experienced the strongest
growth with 16.5% y/y

13.8%
16.4%

24.9%

9.4%

9.0%

4.7%

16.5%

6.0%
6.4%

2018

0.7%
1.9%

1.7%
-1.1%

2019
SWF

© 2022 Thinking Ahead Institute. All rights reserved.

Ocio

Changes in AUM arecaused by a combinationof organic growth and2020
Pension Fund

2021

sample composition

TOTAL
17

T o t al valu e o f asse t s

Evolution by region
Distribution by assets
36% APAC: US$
9,274bn

Distribution by number of funds
30% EMEA: US$
7,783bn

NORTH AMERICA: 49
funds

34% NORTH AMERICA :US$ 8,602bn

36%
34%

36%

32%

33%

37%

36%

30%

2018

© 2022 Thinking Ahead Institute. All rights reserved.

31%

2019

APAC
44

46

46

47

49

30

29

31

29

28

26

25

23

24

23

2017

2018

2019

2020

2021

32%
34%

32%

2017

36%

EMEA: 28
funds

APAC: 23 funds

31%

2020

EMEA

30%

2021

North
America18

T o t al valu e o f asse t s

Split by fund type and region

EMEA
Pension funds

34%

SWF

66%

OCIO

0%

NORTH AMERICA

APAC

Pension funds

79%

Pension funds

53%

SWF

0%

SWF

46%

OCIO

21%

OCIO

1%

▪ Pension funds dominated in North America where they represent 79% of assets. Pension funds also dominated in
APAC although to a smaller extent with 53%.
▪ Sovereign Wealth funds accounted for a significant share of the assets in the EMEA region (66%), in particular due to theMiddle East sovereign funds.
Note: OCIO and Master trust assets are shown in the region of their corporate headquarters. We note that all OCIOs and Master Trusts have clients globally.
© 2022 Thinking Ahead Institute. All rights reserved.

19

2018

2019

2020

2021

Pension Fund2017

T o t al valu e o f asse t s

Evolution of split by fund type and region
North America
APAC
EMEA
North America
APAC
EMEA
North America
APAC
EMEA
North America
APAC
EMEA
North America
APAC
EMEA

SWF

OCIO

79%

21%

53%

46%

34%

1%

66%
77%

23%

58%

42%

40%

60%
77%
57%
49%

2%
41%

20%

1%

20%

2%

51%
79%

54%

43%

46%

3%

54%
80%
57%

48%

20%
39%
52%

4%

▪ Pension Funds continue to dominate in North América with 79% on average for the period, followed by APAC with 53%
on average.
▪ OCIO and Master trust have more presence in North America with 21% on average for the period.
Note: OCIO and Master trust assets are shown in the region of their corporate headquarters. We note that all OCIOs and Master Trusts have clients globally.
© 2022 Thinking Ahead Institute. All rights reserved.

20

T o t al valu e o f asse t s

Split by fund domicile
Share of top 100 discretionary assets
U.S.

Number of funds per country
27.5%

China

10.2%

Japan

8.6%

U.S.

41

China

3

Japan

4
5

United Arab Emirates

6.3%

United Arab Emirates

Canada6.1%

CanadaNorway5.9%

Norway2

Singapore

5.5%

Singapore

3

Netherlands

5.1%

Netherlands

85South Korea

3.9%

South Korea

2

Kuwait3.5%

Kuwait2

Hong Kong

2.9%

Hong Kong

2

Australia

2.8%

Australia

6

Saudi Arabia

1.9%

Saudi Arabia

1

Qatar

1.7%

Qatar

1

Denmark

1.4%

Denmark

Malaysia

0.9%

Malaysia1

Sweden0.9%

Sweden

2

U.K.

0.8%

U.K.

2

Other

© 2022 Thinking Ahead Institute. All rights reserved.

4.2%

Other

3

7

Note: ‘Other’ includes: Taiwan, Russia,
France, South Africa, India, Germany and Iran

21

T A I A sse t Own e r 1 0 0

Section 2 | Pension
funds© 2022 Thinking Ahead Institute. All rights reserved.

22

P e n sio n f u n ds

Pension funds
Percentage of assets

Number of funds

60.8% 59.1% 60.8%

73

58.4%

55.9%

55.9%

69

2017 2018 2019 2020 2021

67

66

68

69

2017 2018 2019 2020 2021

▪ Pension Funds represent 55.9% of the ranking’s assets and 69 of the number of funds.
▪ Of the top 20 funds, 10 are Pension Funds.
▪ The average assets of Pension Funds account for US$208 billion, below the average of US$257 billion for all funds.
▪ Pension funds' share of assets decreased since 2017, when they represented 60.8%, even though the number of funds

increased by 2 funds in the AO 100.

© 2022 Thinking Ahead Institute. All rights reserved.

23

P e n sio n f u n ds

Top 10 pension funds
Government Pension Investment (Japan)$1,730,900

National Pension (South Korea)$797,968

Federal Retirement Thrift (U.S.)$774,176

APG (Netherlands)
California Public Employees (U.S.)$630,358$496,820

Canada Pension (Canada)$426,746

National Social Security (China)$406,787

Central Provident Fund (Singapore)$374,990

CDPQ (Canada)$329,000

California State Teachers (U.S.)$313,940© 2022 Thinking Ahead Institute. All rights reserved.

Total assets managed in US$ millions
24

T A I A sse t Own e r 1 0 0

Section 3 | Sovereign
wealth funds© 2022 Thinking Ahead Institute. All rights reserved.

25

So ve re ign we alt h f u n ds

10

Sovereign wealth funds
Number of funds

Percentage of assets

36.7%

34.5%

33.4%
32.0%

36.7%

32.1%

2017 2018 2019 2020 2021

20

20

22

21

18

20

2017 2018 2019 2020 2021

▪ Sovereign Wealth Funds (SWFs) represent 36.7% of the ranking’s assets and 20 of the number of funds.
▪ Of the top 20 funds, 9 funds are SWFs.
▪ The average assets of SWFs account for US$471 billion, above the average of US$257 billion for all funds.
▪ SWF’s share of assets has increased compared to 2017, while the number of funds ranked has remain stable throughout time.

© 2022 Thinking Ahead Institute. All rights reserved.

26

So ve re ign we alt h f u n ds

10

Top 10 sovereign wealth funds
Norges Bank Investment Management (Norway)$1,402,000

China Investment Corporation (China)$1,222,000

SAFE Investment Company (China)$980,000

Abu Dhabi Investment Authority (United Arab Emirates)$829,000

GIC Private Limited (Singapore)$744,000

Kuwait Investment Authority (Kuwait)$738,000

Hong Kong Monetary Authority Investment Portfolio (Hong Kong)$587,000

Public Investment Fund/Sanabil Investments (Saudi Arabia)$480,000

Qatar Investment Authority (Qatar)$445,000

Investment Corporation of Dubai (United Arab Emirates)$302,000
Total assets managed in US$ millions© 2022 Thinking Ahead Institute. All rights reserved.

27

T A I A sse t Own e r 1 0 0

Section 4 | OCIO

© 2022 Thinking Ahead Institute. All rights reserved.

28

OCIOs an d m ast e r t ru st s

10

OCIOs and master trusts
Percentage of assets

S e ct io n 4

Number of funds

7.4%

7.4%

7.4%

13

11

7.2%

7.1%

12

11

9

11

7.1%

2017 2018 2019 2020 2021

2017 2018 2019 2020 2021

▪ There are 11 OCIOs and master trust funds in the ranking and they represent 7.4% of the ranking’s total assets.
▪ Mercer is the only OCIO and master trust in the top 20.
▪ The average assets of OCIOs and master trusts accounted for US$173 billion which is below the average of US$257 billion
for all funds.
▪ This year OCIOs and master trusts’ assets are a slightly higher proportion of total assets compared to 2017 even though thenumber of funds ranked has decreased by 2 funds in the AO 100.
© 2022 Thinking Ahead Institute. All rights reserved.

29

Top 10 OCIOs and master trusts

OCIOs an d m ast e r t ru st s

10

S e ct io n 4

Mercer (U.S.)$370,168

Goldman Sachs (U.S.)$239,932

AON (U.S.)$204,683

BlackRock (U.S.)$184,528

State Street Global Advisors (U.S.)$181,704

WTW (U.S.)$181,071

Russell Investments (U.S.)$175,913

SEI Investments (U.S.)$175,913

Northern Trust (U.S.)
N. M. Superannuation Proprietary Limited (Australia)$98,733$86,241

Total assets managed in (US$ million)

Note: OCIO and Master trust assets are shown in the region of their corporate headquarters. We note that all OCIOs and Master Trusts have clients globally.
.
© 2022 Thinking Ahead Institute. All rights reserved.

30

T A I A sse t Own e r 1 0 0

Section 5 | Foundations& Endowments© 2022 Thinking Ahead Institute. All rights reserved.

31

Fo u n d atio ns an d e n d o wm e n t sFoundations and endowments
The Bill and Melinda Gates Foundation (U.S.)$53,258

President and Fellows of Harvard College (U.S.)$53,166

Wellcome Trust (U.K.)$46,169

Yale University Investment fund (U.S.)$42,300

Stanford University (U.S.)$37,800

Trustees of Princeton University (U.S.)$37,700

Lilly Endowment Inc. (U.S.)
National Rural Utilities Cooperative Finance Corporation (U.S.)$32,800$29,638

Massachusetts Institute of Technology (U.S.)$27,394

Howard Hughes Medical Institute (U.S.)$27,099
Total assets managed (in US$ million)

Note: None of the Foundations and Endowments listed above are large enough to enter the top 100 asset owners.
© 2022 Thinking Ahead Institute. All rights reserved.

32

T A I A sse t Own e r 1 0 0

Section 6 | Insurers© 2022 Thinking Ahead Institute. All rights reserved.

33

In su ran ce co m p an ie s

Top 10 insurance companies
Ping An Insurance (Group) Company of China, Ltd. (China)$1,596,516

Allianz SE (Germany)$1,295,836

Berkshire Hathaway Inc. (USA)$958,784

Prudential Financial, Inc. (USA)$937,582

AXA SA (France)$881,941

Legal & General Group Plc (United Kingdom)$788,927

China Life Insurance Company Limited (China)$769,934

MetLife, Inc. (USA)$759,708

Manulife Financial Corporation (Canada)$725,129

Assicurazioni Generali S.p.A. (Italy)$666,695
Total assets managed in US$ millions

Note: Total assets presented for insurance companies include assets managed by third parties, so are not included in the top 100 ranking© 2022 Thinking Ahead Institute. All rights reserved.

34

T A I A sse t Own e r 1 0 0

Section 7 | SIP© 2022 Thinking Ahead Institute. All rights reserved.

35

St at e In ve st m e n t P lat f o rm s

What are State Investment Platforms (SIP)?
▪ State Investment Platforms are institutional investors which are entrusted with managing and investing a pool ofcapital from various depositors or funds; and are usually based in one country.
▪ These despositors/funds can range from pension funds, insurance plans, sovereign wealth funds, endowment funds
and other organisations. SIP governance structures are impacted by each depositor's investment policies.
▪ State Investment Platforms should not be considered as a mutually exclusive category like the ones examined inabove sections of this report, but as an additional layer to understand the nature of some funds.
▪ The considerable size of AUMs of these platforms is why they warrant special consideration in our report.

© 2022 Thinking Ahead Institute. All rights reserved.

36

St at e In ve st m e n t P lat f o rm s

Top 10 State Investment Platforms
Ranking

ManagerCountry

Total AUM million, US$

Type of fundRegion9

Kuwait Investment Authority

Kuwait738,000

SWF

EMEA

10

APG

Netherlands

630,358

Pension Fund

EMEA

19

CDPQ

Canada329,000

Pension FundNorth America

21

PGGM

Netherlands

304,000

Pension Fund

EMEA

25

New York State Common

U.S.

267,756

Pension FundNorth America

33

BLF

Taiwan202,000

Pension Fund

APAC

35

MN Services N.V.

Netherlands

192,000

Pension Fund

EMEA

37

Australia

185,000

SWF

APAC

45

Future Fund Management Agency
Public Service Pension Investment
Board

Canada162,000

Pension FundNorth America

48

British Columbia Investment

Canada158,000

Pension FundNorth America▪ We have identified 17 State Investment Platforms in the AO100 (based on the criteria on our previous slide), representing
total AUM of US$ 4.0 trillion.

▪ There is usually one fund which forms the majority of AUM in any SIP. This majority fund is used to categorize a SIP, forexample, PGGM from Netherlands is an SIP and the majority of AUM are from PFZW, which is a pension fund. So PGGM isalso categorized as a pension fund and a SIP.
© 2022 Thinking Ahead Institute. All rights reserved.

37

St at e In ve st m e n t P lat f o rm s

Split by asset allocation and fund domicile
Split by asset allocation*

Asset allocation between regions*

APAC

39.7%

North America

39.3%

EMEA

43.3%

38.1%

22.2%

25.2%
41.5%

EquityFixed Income

26.3%

34.4%

Alternatives
33.3%

36.5%

20.1%

*Weighted average▪ The average portfolio for SIP shows the highest proportion of assets were invested in equities, followed by fixed income
securities and lastly, alternative assets.

▪ North American SIP assets are invested in equity assets (39.3%), followed by alternatives (34.4%).
▪ EMEA SIP have invested a majority share in equities (43.3%), with 36.5% invested in fixed income and 20.1% invested inalternative assets.
▪ Asia-Pacific funds have allocated assets mainly in equities (39.7%) and fixed income (38.1%).
Note: Fixed income includes debt and cash; Alternatives include: private equity, real estate, hedge funds and other.
© 2022 Thinking Ahead Institute. All rights reserved.

38

T A I A sse t Own e r 1 0 0

Section 8 | Top 20 Asset
Owners© 2022 Thinking Ahead Institute. All rights reserved.

39

T o p 2 0 asse t o wn e rs

Top 20 fund assets
30000

20%

Value of assets and asset growth (US$ bn) Top 20 vs Top 100
17.4%

25000

25,65816.4%
23,453

20000

14%
12%

15000
12,871
10,497

16%

20,147

19,011

18,694

10000

18%

10%

9.4%
14,079 9.4%

8%10,961

10,555

6%

6.0%
5000

1.7%

0
2017

3.8%

2%
0%

0.6%
2018
Top 20 aum

4%

2019
Top 100

growth Top 20

2020

2021

growth Top 100▪ The top 20 funds AUM totals US$14.1 trillion and represent 54.9% of the total AUM in the AO100.
▪ In fact, the top 5 funds have an AUM of US$6.2 trillion, which makes up 24% of the total AUM in the ranking.
▪ The 4-year CAGR of the top 20 was 7.6% versus 8.2% of the top 100.

© 2022 Thinking Ahead Institute. All rights reserved.

40

T o p 2 0 asse t o wn e rs

Top 20 split by type of fund and domicile
Split by type of fund% of assets by domicile
NORTH AMERICA: 19.3%
6 Asset Owners

EMEA: 32.1%
6 Asset Owners

10
9

1

Pension Fund

SWF

OCIO

APAC: 48.6%
8 Asset Owners▪ Of the top 20 funds, 9 are sovereign wealth funds (52.8% of AUM in top 20), 10 are pension funds (44.6% of top 20
AUM) and 1 is an OCIO (2.6% of top 20 AUM).
▪ There are 6 asset owners from North America and EMEA and 8 asset owners from APAC in the top 20.

© 2022 Thinking Ahead Institute. All rights reserved.

41

T o p 2 0 asse t o wn e rs

Top 20 split by asset allocation and fund domicile
Split by asset allocation*

Asset allocation between regions*
APAC

48.3%

North America

41.1%

37.6%

14.1%

20.4%

48.7%
31.0%

26.0%

32.9%

EquityFixed Income

EMEA

52.9%

24.8%

22.3%

Alternatives*Weighted average▪ The average portfolio for the top 20 funds shows the highest proportion of assets were invested in equities, followedby fixed income securities and lastly, alternative assets.
▪ Asia-Pacific funds have 48.3% of assets allocated in equities, followed by fixed income (37.6%).
▪ North American funds have predominantly invested in equities (41.1%), followed by alternatives (32.9%)▪ EMEA funds have invested a majority share in equities (52.9%), followed by a similar allocation to fixed income andalternative assets.
Note: Fixed income includes debt and cash; Alternatives include: private equity, real estate, hedge funds and other.
© 2022 Thinking Ahead Institute. All rights reserved.

42

T A I A sse t Own e r 1 0 0

Section 9 | Universal
Owners© 2022 Thinking Ahead Institute. All rights reserved.

43

Un ive rsal o wn e rs

What is a universal owner?
Universal owners are large long-term holders of index-like portfolios that are exposed to the entire
market and economy

Universal owners also own a significant slice of corporate externalities which risk being internalized totheir funds’ net cost, now or in the future
Universal owners are leadership-minded to grow the value and utility of their sponsor/member wealthby managing their long-term risk exposures inter-dependencies across the portfolio, across thestakeholders and over time
Universal owners and sustainability strategies:▪ Universal owners have distinctive investment strategies regarding sustainability that aim to achieve real-world impacts on the environmental/societal
system and drive better outcomes for beneficiaries (or not suffering worse outcomes)▪ The activities adopted by universal investors in these strategies are both allocating to specific assets (security selection and asset allocation) andactive ownership practices – voting and engagement▪ The engagement here is often concerned with system-level factors to contribute to safeguarding the financial system and contributing positively towider stakeholders▪ Universal owner strategies play a key part in Paris alignment and COP26 strategies, consistent with net zero emissions by 2050
▪ Relatively few asset owners in this study have held claim to being universal owners (eg GPIF from Japan, NBIM from Norway, CalPERS from U.S.), whileothers appear to have a universal mindset© 2022 Thinking Ahead Institute. All rights reserved.

44

Un ive rsal o wn e rs

Universal owners
Top 5 Universal Owners (in US$ million)
Government Pension
Investment$1,730,900“ The core idea of a universal owner is a large institution investing longterm in widely diversified holdings across multiple industries and asset

classes, and adapting its investment strategy to these circumstances. For
universal owners, overall economic performance will influence the future

Norges Bank Investment
Management$1,402,000

value of their portfolios more than the performance of individual companies
or sectors. This suggests that universal owners will support the goals of

APG
California Public
Employees

PGGM$630,358

sustainable growth and well-functioning financial markets. A universal
owner will also view these goals holistically and seek ways to reduce thecompany level externalities that produce economy-wide efficiency losses.”$496,820$304,000

Definition of universal owners comes from : Urwin, Pension Funds as Universal Owners;
Opportunity Beckons and Leadership Calls | Rotman International Pensions Management Journal| Spring 2011.

Relatively few asset owners in this study have held claim to being universal owners© 2022 Thinking Ahead Institute. All rights reserved.

45

T A I A sse t Own e r 1 0 0

Section 10 | Asset Allocation
AO 100© 2022 Thinking Ahead Institute. All rights reserved.

46

Asse t Allo cat io n

Split by Asset Allocation
Simple Average

Weighted Average

23.2%

26.5%

40.1%

44.5%
32.3%

Equity33.4%

Fixed Income

The average portfolio forthe top 100 owners showsthat the highest proportionof the assets were invested
in equities, followed by
fixed income including cash
securities and the lowest
allocation was toalternatives in 2021

Alternatives

Note: Fixed income includes debt and cash; Alternatives include: private equity, real estate, hedge funds and other.
© 2022 Thinking Ahead Institute. All rights reserved.

47

Asse t A llo ca t io n

Split by Asset Allocation and region
Weighted Average
North America

41.9%

EMEA

43.5%

APAC

47.4%

28.0%

30.1%

31.4%
36.5%

25.1%
16.1%

Simple Average
North America

41.9%

EMEA

43.5%

APAC

47.4%
EquityFixed Income

28.0%North American funds
have predominantly
invested in equities(41.9%), followed byalternatives (30.1%)
EMEA funds haveinvested a majority sharein equities (43.5%),
followed by allocation to
fixed income (31.4%)

30.1%

31.4%
36.5%

25.1%
16.1%

Asia-Pacific funds havethe highest share inequities (47.4%), followedby allocation to fixedincome (36.5%)

Alternatives

Note: Fixed income includes debt and cash; Alternatives include: private equity, real estate, hedge funds and other.
© 2022 Thinking Ahead Institute. All rights reserved.

48

Asse t A llo ca t io n

Split by Asset Allocation and fund type
Weighted Average
SWF

47.6%

26.8%

25.6%

Pension Fund

42.4%

35.9%

21.7%

OCIO

39.2%

42.9%

17.9%

Simple Average
SWF

40.3%

Pension Fund

39.8%

OCIO

42.3%
Equity

27.8%
34.7%

Fixed Income

40.2%

31.9%
25.5%
17.5%

SWF have the highest
share in equities(47.6%), followed byallocation to fixedincome (26.8%)
Pension funds haveinvested a majority
share in equities(42.4%), followed byallocation to fixedincome (35.9%)
OCIO´s funds have thehighest share in fixedincome (42.9%),
followed by allocation toequity (39.2%)

Alternatives

Note: Fixed income includes debt and cash; Alternatives include: private equity, real estate, hedge funds and other.
© 2022 Thinking Ahead Institute. All rights reserved.

49

Split by Asset Allocation, region and type of fund
47.8%

APAC

47.4%

Pension Fund

EMEA

North America

OCIO

SWF

Asse t A llo ca t io n

Weighted Average

North America

EMEA
APAC

24.4%

27.8%

29.5%

42.6%

23.1%

25.9%

33.3%

31.5%

47.9%
47.2%

44.4%

36.9%

APAC

44.6%
58.3%

Equity18.8%

Fixed Income

8.4%

18.5%
27.7%

14.0%

Alternatives

Notes: There are no North American SWFs and EMEA OCIOs in the top AO100. Information of asset allocation was available for 80 of the Asset Owners ranked in the AO100.

•••

OCIOs from Asia-Pacific have the highest proportion of equity at 58.3%, followed by SWFs from EMEA at 47.8%.
Pension funds from EMEA have the highest proportion of fixed income at 47.9% followed by OCIOs from North America
at 44.6%.
North American pension funds have the highest proportion of alternative assets at 31.5%, followed by SWF from EMEA
at 27.8%.

Note: Fixed income includes debt and cash; Alternatives include: private equity, real estate, hedge funds and other.
© 2022 Thinking Ahead Institute. All rights reserved.

50

T A I A sse t Own e r 1 0 0

Section 11:
Focus section: Long-horizon investing© 2022 Thinking Ahead Institute. All rights reserved.

51

Long horizon investing

The four parameters defining long horizon investingNo single accepted definition of long horizon investing but most definitions would reference some of these four concepts below

Liability profile

Investment beliefs

Risk appetite

Decision mind-set• The degree to which theinvestor must service
short-term obligations• Whether investors believethat long-horizon investing
can improve returns• The ability and willingnessof the investors to ride out
short-term pricefluctuations• The ability of theinvestment team/ agentsto execute and stay on along-term strategy

Source: “The Future of Long-term Investing”, 2011, World Economic Forum
Long-horizon investing concept is not defined by holding period. It is more defined by having investment
governance & culture, mandates & goals; measures & incentives, mindset & skillset associated with thelong term – at least ten years, probably longer© 2022 Thinking Ahead Institute. All rights reserved.

50

Long horizon investing

The long horizon mindset is a key feature and when present
provides a key competitive edge
The long horizon mindset is associated with a number of asset owner traits

Sustainability
Aligned with long-termsustainability goals that mitigate
systemic risks

Mission sensitivity
Better aligned with the mission
by reference toliabilities/obligations© 2022 Thinking Ahead Institute. All rights reserved.

Recognising the regime
Sensitivity to the investment
regime and its transitions

Ownership andengagement
Able to generate value throughengagement/ active ownership

Total portfolio focus
Total portfolio approach in whichassets compete for capital basedon quality

Value creation
Focus on and search for longterm and sustainable value
creation53

Long horizon investing

The gaps/ slippages that characterise long horizon investing
Much research is framed in terms of failings that obstruct the delivery of long horizon effectivenessNarrow framing

Measurement• Analysis fails to capture multiple risk
facets, particularly tail risk, systemic risk,
impairment risks• Sensitivity to rotational vs trend shocks• Benchmark, attribution and risk metricchoices have shortcomings• Attribution fails to identify fundamental
return drivers

Agency issues

Mind-set issues• Agents manage their interests and are
not aligned with their clients• Performance attribution is storified not
qualified• Long horizon success needs joinedupness and a particular type of mindset
with diversity included – which are
difficult attributes to secure• Systemic risk is not addressed© 2022 Thinking Ahead Institute. All rights reserved.

54

Long horizon investing

Total portfolio thinking and approaches (TPA) are supportive tolong horizon success
The TPA supports the long horizon mind-set by preferring links to long-term performance objectives over benchmarks
A TPA can be thought of as reflecting greater levels of conviction on several components, as below:
Slider position

1

2

3

4

5

Performance assessed vs:Benchmarks

Fund goals

Success measured by:

Relative value added

Total fund return

Opportunities defined by:

Asset classes

Contribution to total
portfolio outcome

Diversification principally via:

Capital allocation toasset classes

Allocation to total
portfolio risk

Asset allocation determined by a:

Board-centric processusing ALM

CIO-centric process of
portfolio quality

Frequency of changes:

Infrequent changes
calendar-timeContinuous review,
changes in real-timePortfolio implemented by:Multiple teams
competing

One teamcollaborating together© 2022 Thinking Ahead Institute. All rights reserved.

Better decision
framing

Better decision
makingGreaterdynamism

55

Long-horizon investingThinking Ahead Institute’s published research on long-horizon
investing

Converting the 99

What you think, you become

Long-horizon investing beliefs

Building a long-horizon mindset:
practical guide from asset owners© 2022 Thinking Ahead Institute. All rights reserved.

The search for a longterm premium

Patience: not merely avirtue, but an asset

It’s about time
Total portfolio thinking andpractice

56

T A I A sse t Own e r 1 0 0

Section 12 | Ranking© 2022 Thinking Ahead Institute. All rights reserved.

57

10

Se ct io n 1

A O 1 0 0 r a n kin g

AO 100 ranking (in US$ million)
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Fund
Government Pension Investment Fund
Norges Bank Investment Management
China Investment Corporation
SAFE Investment Company
Abu Dhabi Investment Authority
National Pension
Federal Retirement Thrift 1
GIC Private Limited
Kuwait Investment Authority
APG
Hong Kong Monetary Authority Investment Portfolio
California Public Employees 1
Public Investment Fund/Sanabil Investments
Qatar Investment Authority
Canada Pension 2
National Social Security 3
Central Provident Fund
Mercer 2
CDPQ
California State Teachers 1© 2022 Thinking Ahead Institute. All rights reserved.

MarketJapan
NorwayChina
China
United Arab Emirates
South Korea
U.S.
Singapore
KuwaitNetherlands
Hong Kong
U.S.
Saudi Arabia
Qatar
CanadaChina
Singapore
U.S.
CanadaU.S.

Total Assets$1,730,900$1,402,000$1,222,000$980,000$829,000$797,968$774,176$744,000$738,000$630,358$587,000$496,820$480,000$445,000$426,746$406,787$374,990$370,168$329,000$313,940

Type of Fund
Pension Fund
SWF
SWF
SWF
SWF
Pension Fund
Pension Fund
SWF
SWF
Pension Fund
SWF
Pension Fund
SWF
SWF
Pension Fund
Pension Fund
Pension Fund
OCIO
Pension Fund
Pension Fund58

10

Se ct io n 1

A O 1 0 0 r a n kin g

AO 100 ranking (in US$ million)
Rank
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

Fund
PGGM
Investment Corporation of Dubai
Mubadala Investment Company
Temasek Holdings
New York State Common 1
New York City Retirement 1
Local Government Officials
Employees Provident Fund
Goldman Sachs 2
Florida State Board 1
Korea Investment Corporation
AON 2
BLF
Texas Teachers 1
MN Services N.V.
Ontario Teachers
Future Fund Management Agency
BlackRock 2
Russian National Wealth Fund
State Street Global Advisors 2© 2022 Thinking Ahead Institute. All rights reserved.

MarketNetherlands
United Arab Emirates
United Arab Emirates
Singapore
U.S.
U.S.
Japan
Malaysia
U.S.
U.S.
South Korea
U.S.
TaiwanU.S.
Netherlands
CanadaAustralia
U.S.
RussiaU.S.

Total Assets$304,000$302,000$284,000$283,000$267,756$266,702$248,572$242,602$239,932$213,792$205,000$204,683$202,000$196,727$192,000$191,140$185,000$184,528$182,590$181,704

Type of Fund
Pension Fund
SWF
SWF
SWF
Pension Fund
Pension Fund
Pension Fund
Pension Fund
OCIO
Pension Fund
SWF
OCIO
Pension Fund
Pension Fund
Pension Fund
Pension Fund
SWF
OCIO
SWF
OCIO
59

10

Se ct io n 1

A O 1 0 0 r a n kin g

AO 100 ranking (in US$ million)
Rank
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60

Fund
WTW 2
Russell Investments 2
AustralianSuper 4
CDC
Public Service Pension Investment Board
Washington State Board 1
Public Institute for Social Security 3
British Columbia Investment
Public Investment Corporation 5
ATP
MPFA
Wisconsin Investment Board 1
Boeing 1
Employees' Provident 3
New York State Teachers 1
North Carolina 1
AlectaCalifornia University 1
Bayerische Versorgungskammer
Ohio Public Employees 1© 2022 Thinking Ahead Institute. All rights reserved.

MarketU.S.
U.S.
Australia
FranceCanadaU.S.
KuwaitCanadaSouth Africa
Denmark
Hong Kong
U.S.
U.S.
India
U.S.
U.S.
SwedenU.S.
Germany
U.S.

Total Assets$181,071$175,913$169,055$166,000$162,000$161,517$159,963$158,000$157,000$155,351$150,000$147,915$147,210$144,972$144,396$137,116$136,653$125,333$122,000$121,574

Type of Fund
OCIO
OCIO
Pension Fund
Pension Fund
Pension Fund
Pension Fund
Pension Fund
Pension Fund
SWF
Pension Fund
Pension Fund
Pension Fund
Pension Fund
Pension Fund
Pension Fund
Pension Fund
Pension Fund
Pension Fund
Pension Fund
Pension Fund60

10

Se ct io n 1

A O 1 0 0 r a n kin g

AO 100 ranking (in US$ million)
Rank
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80

Fund
AT&T 1
National Federation of Mutual Aid
IBM 1
National Development Fund
Universities Superannuation 6
Virginia Retirement 1
Pension Fund Association 2
Raytheon Technologies 1
ADQ
Michigan Retirement 1
Aware Super 4
Royal Dutch Shell 7
New Jersey 1
Minnesota State Board 1
PFA Pension
Alberta Investment Management Corporation
KLP
Kaiser 1
Georgia Teachers 1
SEI Investments 2© 2022 Thinking Ahead Institute. All rights reserved.

Market
U.S.
Japan
U.S.
Iran
U.K.
U.S.
Japan
U.S.
United Arab Emirates
U.S.
Australia
Netherlands
U.S.
U.S.
Denmark
CanadaNorway
U.S.
U.S.
U.S.

Total Assets$119,539$117,055$115,427$115,000$111,190$110,014$109,824$108,864$108,000$107,959$107,511$104,495$104,452$102,914$102,709$102,000$102,000$101,035$100,922$100,691

Type of Fund
Pension Fund
Pension Fund
Pension Fund
SWF
Pension Fund
Pension Fund
Pension Fund
Pension Fund
SWF
Pension Fund
Pension Fund
Pension Fund
Pension Fund
Pension Fund
Pension Fund
Pension Fund
Pension Fund
Pension Fund
Pension Fund
OCIO
61

10

Se ct io n 1

A O 1 0 0 r a n kin g

AO 100 ranking (in US$ million)
Rank
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100

Fund
Oregon Public Employees 1
Danica Pension
Northern Trust 2
Massachusetts PRIM 1
Qsuper 4
General Motors 1
Ontario Municipal Employees
Ohio State Teachers 1
AP Fonden 7
Healthcare of Ontario
General Electric 1
Bouwnijverheid
United Parcel Service 1
N. M. Superannuation Proprietary Limited 4
United Nations Joint Staff 1
Emirates Investment Authority
Lockheed Martin 1
Rothesay Life
J.P. Morgan Asset & Wealth Management 2
TCorp (NSW Treasury Corporation)© 2022 Thinking Ahead Institute. All rights reserved.

MarketU.S.
Denmark
U.S.
U.S.
Australia
U.S.
CanadaU.S.
SwedenCanadaU.S.
Netherlands
U.S.
Australia
U.S.
United Arab Emirates
U.S.
U.K.
U.S.
Australia

Total Assets$100,410$99,872$98,733$98,458$96,534$96,077$95,671$95,134$94,424$90,524$90,464$88,548$86,833$86,241$86,196$86,000$85,742$84,444$83,919$83,000

Type of Fund
Pension Fund
Pension Fund
OCIO
Pension Fund
Pension Fund
Pension Fund
Pension Fund
Pension Fund
Pension Fund
Pension Fund
Pension Fund
Pension Fund
Pension Fund
OCIO
Pension Fund
SWF
Pension Fund
Pension Fund
OCIO
SWF
62

10

Se ct io n 1

Notes:

Sources:

1 As of September 30, 2021
2 As of March 31, 2022
3 Estimate
4 As of June 30, 2021
5 Public Investment Corporation (PIC) was included in the

ranking as it is the appointed investment manager for
GEPF, which owns the majority of the PIC assets
6 As of March 31, 2021
7 Global figure© 2022 Thinking Ahead Institute. All rights reserved.

A O 1 0 0 r a n kin g▪ Willis Towers Watson▪ Pensions & Investments: A leading US investment newspaper▪ Global SWF: a leading financial boutique providing the most up-to-date and reliable dataaround State-Owned Investors▪ Pension Funds and SWF data was sourced from the P&I 300 and GSWF, OCIO figures weresourced from P&I research center and Australian Prudential Regulation Authority (APRA),
while F&E and Insurers data was sourced form annual reports, websites, and directcommunication with organisations▪ New sources of information were used for some countries in 2021

63

T A I A sse t Own e r 1 0 0

Limitations of reliance© 2022 Thinking Ahead Institute. All rights reserved.

64

Limitations of reliance

Limitations of reliance – Thinking Ahead Group 2.0
This document has been written by members of the Thinking Ahead Group 2.0. Their role is to identify and develop
new investment thinking and opportunities not naturally covered under mainstream research. They seek to encourage
new ways of seeing the investment environment in ways that add value to our clients.
The contents of individual documents are therefore more likely to be the opinions of the respective authors rather
than representing the formal view of the firm.
Limitations of reliance – Willis Towers Watson
WTW has prepared this material for general information purposes only and it should not be considered a substitutefor specific professional advice. In particular, its contents are not intended by WTW to be construed as the provisionof investment, legal, accounting, tax or other professional advice or recommendations of any kind, or to form thebasis of any decision to do or to refrain from doing anything. As such, this material should not be relied upon forinvestment or other financial decisions and no such decisions should be taken on the basis of its contents without
seeking specific advice.
This material is based on information available to WTW at the date of this material and takes no account ofsubsequent developments after that date. In preparing this material
we have relied upon data supplied to us by third parties. Whilst reasonable care has been taken to gauge the reliabilityof this data, we provide no guarantee as to the accuracy or completeness of this data and WTW and its affiliates andtheir respective directors, officers and employees accept no responsibility and will not be liable for any errors or
misrepresentations in the data made by any third party.
This material may not be reproduced or distributed to any other party, whether in whole or in part, without WTW’s
prior written permission, except as may be required by law. In the absence of our express written agreement to thecontrary, WTW and its affiliates and their respective directors, officers and employees accept no responsibility and will
not be liable for any consequences howsoever arising from any use of or reliance on this material or the opinions wehave expressed.
Contact details
Jess Gao
Jessica.Gao@wtwco.com
Website: www.thinkingaheadinstitute.org
LinkedIn: Thinking Ahead Institute
Twitter: @InstituteTAG© 2022 Thinking Ahead Institute. All rights reserved.

65