April 11, 2019
WASHINGTON, D.C. -- At the Annual Spring Meetings of the World Bank, the Responsible Asset Allocator Initiative at New America unveiled "The 2019 Leaders List: The 25 Most Responsible Asset Allocators," a ranking of the world’s top sovereign wealth funds (SWF) and government pension (GPF) funds. The study, developed in partnership with the Fletcher School at Tufts, analyzed 197 funds comprising $21 trillion in assets to identify 25 institutions that set a global standard for leadership in responsible, sustainable investing. This year’s ranking builds on the groundbreaking first release of the report under the auspices of The Bretton Woods II program at New America in 2017.
"The Responsible Asset Allocator Initiative provides a barometer of how the world’s largest financial actors are changing their behavior to address the planet's greatest challenges. The intense competition for inclusion on the 2019 RAAI Leaders List demonstrates that sophisticated investors are embracing a broader definition of fiduciary duty and, increasingly, adopting environmental, social and governance considerations into their portfolio decision-making," said Dr. Tomicah Tillemann, Chair of the RAAI program at New America.
“The world is shifting toward more socially aware and environmentally friendly investment practices and the RAAI Leaders and Finalists Lists highlight a powerful group of investors that are leading the charge. The responsible investing practices of these funds provide a benchmark of excellence for peers, potentially unleashing hundreds of billions of dollars to finance renewable energy, sustainable infrastructure, clean water, healthcare and education. Increasingly, the asset allocator community is recognizing that investing responsibly and sustainably is a better way to optimize returns, reduce risks, and identify opportunities for future growth, all while aligning portfolios with broader social and environmental concerns of stakeholders,” said Scott Kalb, Founder and Director of the RAAI at New America and Chairman of the Sovereign Investor Institute at Institutional Investor.
Researchers expanded the scope of coverage in 2019, evaluating 471 asset allocators and rating 197 of them, up from 121 ratings in 2017. The ten core principles for benchmarking funds remained the same, but the number of ranking criteria almost doubled, raising the bar for the 25 highest scoring funds that were selected for inclusion on the prestigious Leaders List. Funds ranked 26-50 were recognized as Finalists.
- Nine new funds were selected for the Leaders List in 2019
- Canada has the greatest number of funds on the list with five Leaders, followed by France and the US with three each
- AUM of the Leaders increased by one trillion dollars in 2019, rising to $5.9 trillion from $4.9 trillion in 2017, indicating that an increasing number of the world’s largest and most sophisticated investors are considering social and environmental risks when deploying their capital
- The total assets of the Leaders List funds are larger than the combined GDP of 145 countries and 44 times larger than the total loans and disbursements made by the World Bank Group in 2018
The 25 funds on the Leaders List are a unique group, comprising SWFs and GPFs from Africa, Asia, Australasia, Europe, and North America, with enormous influence in capital markets around the world. Where they go, government leaders, policy makers and institutional investors tend to follow, leading to real change in sectors critical to the environment and to society.
The Leaders List (in alphabetical order)
- Alberta Investment Management Corp. (AIMCo) (Canada)
- AP Funds (Sweden)
- APG Groep (Netherlands)
- Australian Super* (Australia)
- British Columbia Investment Management Corp. (Canada)
- Caisse de dépôt et placement du Québec (Canada)
- Caisse des Dépôts et Consignations (France)
- California Public Employees' Retirement System (CalPERS) (USA)
- California State Teachers' Retirement System (CalSTERS)* (USA)
- Canada Pension Plan Investment Board (CPPIB) (Canada)
- ERAFP (Etablissement de Retraite Additionnelle de la Fonction Publique) (France)
- Fonds de Reserve pour les Retraites* (France)
- Government Pension Fund – Global (Norway)
- Government Pension Investment Fund* (Japan)
- Khazanah Nasional Berhad (Malaysia)
- Strathclyde Pension Fund* (UK)
- New Zealand Superannuation Fund (New Zealand)
- Ontario Teachers' Pension Plan (Canada)
- PensionDanmark* (Denmark)
- PGGM (Netherlands)
- Public Investment Corp. (South Africa)
- RPMI Railpen* (UK)
- UC Regents Investment Funds* (USA)
- United Nations Joint Staff Pension Fund (Global)
- Victoria Funds Management Corp* (Australia)
* New addition to the Leaders List in 2019
About the Responsible Asset Allocator Initiative (RAAI)
The Responsible Asset Allocator Initiative is focused on mobilizing capital from the world’s largest institutions toward responsible investing and the achievement of the Sustainable Development Goals of the United Nations. It is a window into the future of investing, a world where global savings institutions deploy funds not only to achieve financial returns but also to address the broader social and environmental challenges we face today.
About New America
The RAAI was founded at New America, an organization dedicated to renewing America by continuing the quest to realize the nation’s highest ideals, honestly confronting the challenges caused by rapid technological and social change, and seizing the opportunities those changes create.