Two Australian asset owners are among the largest risers since 2017 in a WTW top 100 ranking while the research firm has identified a ‘Super 6’ of Australian super funds.
Research by WTW’s Thinking Ahead Institute of the Asset Owner 100 shows Australian Super has risen by 17 positions since 2017, making it the seventh-biggest gain in global rankings.
This was followed by sovereign wealth fund Future Fund which has risen five positions.
As of 2024, WTW said Australian Super now has US$212.3 billion ($320.5 billion) in assets under management to stand at 36th position while sovereign wealth fund Future Fund follows closely behind with US$204 billion in 40th position.
According to the results, the top 100 global asset owners now hold a record US$29.3 trillion in total assets, marking an 11.3 per cent increase from the previous year. It marks a second consecutive year of positive growth, following an 8.7 per cent decline in 2022.
Of the total assets in the study, pension funds manage 49 per cent, while sovereign wealth funds (SWFs) handle 40.8 per cent. The rest is divided between outsourced CIOs, master trusts, foundations and endowments.
However, growth varied sharply across categories: pension funds expanded by just 6.5 per cent year-on-year, while sovereign wealth funds (SWFs) saw the strongest gains, climbing 16.7 per cent over the same period.
Pension funds have represented a declining proportion of the AO100 in North America and Europe, Middle East and Africa (EMEA) since 2017, and this year continued that trend.
Australia’s Super 6
Regionally, WTW also identified a ‘Super 6’ in Australia as the six largest superannuation funds in the region, consisting of US$0.7 trillion. These funds are “shaping the direction of institutional investing, setting global investment trends, governance practices and sustainability standards”.
“While each fund operates within its own regional context and regulatory framework, they are increasingly converging in approach. Common themes include use of total portfolio thinking investing in global assets, a focus on risk and resilience, a business model in which investor partnerships are critical, and wide inter-connectivity of stakeholders,” WTW said.
This ‘Super 6’ consists of AustralianSuper, Australian Retirement Trust (ART), Aware Super, UniSuper, which all rank in the top 100 global asset owners, as well as Hostplus and Cbus which sit in the 100th to 150th range.
ART has US$186.6 billion while Aware Super has US$110.3 billion, sitting in 47th and 76th respectively. Hostplus has US$71 billion and Cbus has US$57.1 billion.
Martin Goss, co-head of governance and investments for Australia at WTW, said the rise in scale and global recognition underscores the growing importance of the Australian superannuation industry.
“The increase in scale of the Australian funds and the recognition of an Australian ‘Super 6’ cluster totalling USD $0.7 trillion by the Thinking Ahead Institute in this study demonstrates the continuing evolution of the scale of the superannuation industry in Australia,” Goss said.
He also commended the adoption of the total portfolio approach (TPA) across Australian funds, which he said is increasing momentum even despite super fund constraints linked to the design of the superannuation performance test.
“By encouraging collaboration across teams and clarifying accountability for total-fund outcomes, TPA enables more efficient use of capital at the total-portfolio level and supports stronger longer-term performance potential,” he said.
