The Dutch pension asset manager's Asia Pacific head of real estate says his team has just had one of its busiest years ever and that 2021 is looking similarly promising.
Japan û which has a 15% share of total pension fund assets worldwide û is still home to the largest pension funds in Asia-Pacific and is still ranked second in the world next to the US, which has a 43% share. Although Japan has maintained its standing in the world rankings for pension funds, its share of the total has been sliding from 21% in 2004 and 17.6% in 2005.
JapanÆs Government Pension Investment Fund is still the worldÆs largest pension fund û a position it has held since 2002 û with $936 billion in assets. A far second is NorwayÆs Government Pension with $286 billion, followed by South KoreaÆs National Pension with $203 billion, South AfricaÆs Government Employees Pension Fund with $178 billion, and TaiwanÆs Postal Savings Fund with $128 billion.
Sovereign pension funds accounted for $2.4 trillion in assets, or around 23% of the total worldwide. The latest figure is a sharp increase from just under $1 trillion three years ago.
ôSovereign funds are becoming increasingly influential investors,ö Watson Wyatt notes in the report.
The top 20 pension funds account for $3.8 trillion in assets, or around a third of the total worldwide. Other Asian pension funds in the top 20 are MalaysiaÆs Employees Provident Fund ranked seventh with $82 billion in assets, SingaporeÆs Central Provident Fund ranked eighth with $70 billion in assets, ChinaÆs National Social Security ranked 12th with $36 billion in assets, and IndiaÆs Employees Provident ranked 13th with $32 billion in assets.
In its second annual sustainable investment report, the sovereign wealth fund says it invested $1.79bn in ESG bonds. Experts say asset owners next need to consolidate their standards.
Senior executives at the Taiwan financial group and Canadian pension fund believe that companies have to make an ESG transition, and may not have a choice in a few years.
Record low borrowing costs in Australia are feeding demand for the country's real estate, with domestic and global investors raising their allocations into the sector.
Experts have a diversified view on the appeal of private assets across the region, but one thing's for certain - inflows are rising, particularly into China and the US.