Canadian fund ranked sixth globally out of 20 at US$578.4 billion
The world's 300 largest pension funds grew assets under management by 13.4 per cent in 2025 to a record US$27.7 trillion, marking the fastest annual expansion since 2017, according to the Global Top 300 Pension Funds report from the Thinking Ahead Institute at WTW.
Growth was even sharper at the top of the ranking. The 20 largest funds saw assets climb 14.7 per cent to a combined US$11.9 trillion.
Canada's own CPP Investments ranked sixth globally at US$578.4 billion, the only Canadian fund in the top 20.
Norway widens its lead
Norway's Government Pension Fund crossed the US$2-trillion threshold for the first time, extending its position as the world's largest pension fund after overtaking Japan's Government Pension Investment Fund in 2024. At US$2.1 trillion, it is now 12.7 per cent larger than its nearest peer.
North America remains the dominant region, though, holding 44.7 per cent of the top 300's total assets, though that share slipped from 47.2 per cent the year prior. Over the five years to 2025, North American funds still posted the strongest annualized growth of any major region at 6.4 per cent.
Asia-Pacific gained ground, rising from 25.5 per cent to 26.6 per cent of total assets year over year. Funds in the region held the highest equity allocation among the major regions at 51.4 per cent, alongside 36.4 per cent in bonds and 10.5 per cent in alternatives. Europe also expanded its share to 24.6 per cent from 23.7 per cent, buoyed in large part by the Norwegian fund's milestone.
UK and Netherlands buck the trend
Not every market participated in the rally. The UK and the Netherlands were the only two to record negative asset growth over the past five years in both local-currency and US-dollar terms. Both remain Europe's largest pension markets, but their mature defined benefit systems face ongoing de-risking, benefit payouts, and structural change.
Europe continues to trail on defined contribution penetration, with just 13.2 per cent of assets in DC plans compared with 30.7 per cent in Asia-Pacific and 31.6 per cent in North America.
Scale breeds 'hyperscalers'
The report frames consolidation as a defining industry theme. The largest funds are not only growing organically but pursuing scale through strategic partnerships that bring access to new expertise, technology, and specialized capabilities.
“This is giving rise to a new generation of investment 'hyperscalers,'” Jessica Gao, director at the Thinking Ahead Institute, said, adding these are organizations borrowing a concept from the tech sector - leveraging scale alongside governance, relationships, and operational capability to deliver better outcomes.
“Scale and consolidation are among the defining industry themes of the moment. Not only are the largest funds getting larger, but organizations are also increasingly pursuing growth beyond traditional M&A through strategic partnerships, which provide access to additional expertise, technology, and specialized capabilities,” she said. “For pension funds, it is not just about getting bigger, but about making their scale work harder.”
AI ambitions outpace infrastructure
Gao also flagged a gap between aspiration and readiness on artificial intelligence. Pension funds see clear potential for AI to sharpen investment decisions and improve organizational effectiveness, but many still lack the underlying data architecture, workflows, and processes to deploy it meaningfully.
“The opportunity is significant, but progress will depend on strengthening the data, workflows and organizational foundations required to scale AI effectively,” Gao said.
