Singapore's CPF ranked 9th pension fund in the world

Singapore's CPF ranked 9th pension fund in the world

By: 
Samantha Chiew
03/09/18, 04:53 pm

SINGAPORE (Sept 3): Singapore’s Central Provident Fund ranked 9th in the global provision fund, according to the latest global 300 research from Willis Towers Watson’s Thinking Ahead Institute.

The city state maintained its position from the previous year with its assets amounting to US$269.1 billion ($369 billion).

This year, Asia featured prominently with a total of seven pension funds in the top 20. Apart from Singapore, Japan’s Government Pension Investment also maintained its top spot with its assets totalling US$1.44 trillion.

South Korea’s National Pension came in third, up one spot from last year, while China’s National Social Security kept its spot at 6th.

Jayne Bok, head of investments for Asia at Willis Towers Watson says, “Strong performance gains especially in this region during 2017 helped boost many Asian pension funds. However, uncertainties over geo-political and economic events that led to increasing market volatility in 2018 are seen as headwinds to Asia and some emerging markets.

“We are living in a world with no easy answers for investors and plenty of stormy seas ahead. As the economic cycle continues to mature and the risks of a recession increase, funds with a long-term horizon should consider a broader opportunity set by looking beyond their home region and mainstream asset classes in order to maximise diversity and create resiliency. It is a good time to review portfolios now and how they would perform under different risk scenarios.”

The combined assets under management (AUM) for the seven Asian countries in the top 20 accounted for US$3.3 trillion, surging by 25.6% during 2017 and representing 44.3% of assets in the top 20.

Within the Global 300, the AUM of all 49 Asia Pacific pension funds increased by 20% to almost US$5 trillion in 2017, outpacing the Global 300 funds’ overall increase of 15.1%.

And among the Asia Pacific pension funds, including corporate pension plans in the Global 300, sovereign and public sector pension funds with a total of 32 funds had combined assets of US$4.4 trillion in 2017 and accounted for 24.5% of the total assets. There are 14 domiciled in the Asian (ex-Japan) region, 10 in Japan, seven in Australia and one in New Zealand.

“The past 12 months has been a period of change for large pension funds. We saw Asian sovereign and public sector pension funds seeking or taking actions to diversify investments as reflected by new mandates awarded to their asset managers,” says Bok.

Looking beyond quarterly fluctuations in ST Engineering’s growth story

SINGAPORE (Nov 17): ST Engineering’s latest third-quarter results have shown improvements in profitability in three of its four key business units of aerospace, electronics, land systems and marine. In addition to the main four, there is an “others” unit, which lumps together shared services, new ventures and other related activities. It reported a loss of $7.3 million. ST Engineering’s latest third-quarter results have shown improvements in profitability in almost all its business units. The marine unit, on the other hand, suffered a 35% y-o-y drop in earnings to $12.8 millio....
Read More >>

iFAST founder Lim confident China business will be exciting

SINGAPORE (Nov 16): Lim Chung Chun, chairman and CEO of iFAST Corp, believes long-term diversification is the best strategy to grow its assets under administration (AUA). Indeed, the company’s AUA has grown 18.7% y-o-y to hit a new record high of $8.5 billion as at Sept 30. Although the expansion of its unit trust platform into a wealth management solution distributing stocks, bonds, exchange-traded funds (ETFs) and insurance has been pretty successful, its geographical expansion into the mainland Chinese market for his B2B wealth management solutions hasn’t quite hit its marks yet. ....
Read More >>

How IoT in agriculture could present new opportunities for investors

SINGAPORE (Nov 16): Earlier this year, Avarga, formerly known as UPP Holdings, said it was acquiring a 23.08% stake in local start-up Archisen for up to $1.5 million in three separate tranches. Ian Tong, Avarga’s executive director, is on ­Archisen’s board. Tong is also the executive director of The Edge Media Group, which publishes The Edge Singapore. While indoor farming is not new, high-tech IoT-enabled farm Archisen is drawing on technical expertise from its partners to improve tis production within a controlled environment, shielded from the vagaries of weather that have t....
Read More >>
BMW charges up an 'electrified future'

Christopher Wehner, managing director of BMW Group Asia, explains how electric cars such as the BMW