Asia-Pacific’s seven top pension markets – Japan, Australia, South Korea, Malaysia, China, Hong Kong and India – saw their assets under management climb by 11.6 per cent in 2019, according to Thinking Ahead Institute’s Global Pension Assets Study released Monday.

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Japan is the largest of Asia’s pension markets, followed by Australia, with both countries in the top seven pension markets globally, the study said. “Asia Pacific (APAC)’s pension markets continue to be a hive of activity, with South Korea and Hong Kong experiencing the highest growth rates for total assets globally, and Australia ranked as the most successful pensions market worldwide,” Jayne Bok, head of investments for Asia at advisory Willis Towers Watson, said in the statement.

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“However, looking at 2019, growth of the seven largest APAC pension markets was slightly slower than the overall growth of the 22 largest pension markets. This is partly due to the lower allocation to equities and alternative investments within the region,” she said. Bok added that to sustain their growth, APAC pension funds will need to start embracing sustainability, ESG and long-horizon investing. “The region has lagged in this area for many years, but with sustainability and climate change becoming significant for the industry, such issues can no longer be ignored,” she said.

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