By OMFIF

The inaugural edition of Global Public Pensions, sponsored by Citi and Capital Group, builds on the seven-year track record of OMFIF’s benchmark Global Public Investor annual report and aggregates the portfolios of 100 leading global public pension funds.

In total, global public pensions have more than $17tn of assets under management – more than twice as much as sovereign wealth funds, according to OMFIF research. This new report captures 77% of those investable assets.

The research reveals that:

Public pensions are continuing their long-term shift away from fixed income into equities and alternatives, based on a sample of 100 asset allocations making up 77% of investor group assets
Listed equities now make up 33% weighted average of total assets; real assets and private equity are at 7.7% and 5.4% respectively
Only 42% of public pension fund assets remain in fixed income instruments on a weighted average basis. The median portfolio holds only 25% of assets in fixed income
The average actuarial return target among sample has decreased between 2015-19 but remains higher than returns.Most of the decline coming from revised inflation assumptions.
The report also features analysis from decision-makers in state pension funds from across Europe, Asia, and North America. OMFIF describes how these institutions are ‘at the intersection of demographic change, technological upheaval, and tumultuous investment landscape’.

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