Pension fund assets increased by 15% last year
Global institutional pension fund assets in the 13 major markets increased by 15% during 2009, from US$20 trillion to over US$23 trillion, said a new study.
The growth is in sharp contrast to a 21% fall in asset values during 2008 and brought assets back to 2006 levels.
The study also reveals that the global pensions balance sheet measured by asset values over liability values using sovereign bonds to discount liabilities strengthened by around 10% in 2009, compared to a 25% fall in 2008.
According to the Towers Watson's Global Pension Assets Study, pension assets now amount to 70% of the average global GDP, down from 76% a decade earlier, but substantially higher than the equivalent figure in 2008 of 58%.
Roger Urwin, global head of investment content at Towers Watson, said: "The global financial crisis was a huge wake-up call and problems of poor systemic design in the industry point to increased likelihoods of further periods of financial distress in future. While the recovery of markets will be welcomed, it is hoped that it will not stifle recognition of these as major issues for governments and companies to address. I fear that without exceptional leadership we will have another tough decade in the pension and investment world."
