Key Takeaways
- • The fourth edition of the Global Pension Transparency Benchmark found that 69 per cent of reviewed organisations improved their total transparency scores, after 77 per cent did so in the prior edition.
- • The average fund scored 63 out of 100, up from 60 last year and 55 in the year before, according to the benchmark.
- • The Government Pension Fund Global topped the rankings for the second consecutive year, narrowly ahead of CPP Investments, with both funds improving by roughly 15 to 25 points since 2022.
- • Canadian funds ranked first among countries for the fourth straight year, with all five Canadian funds placed within the top 11 globally; Australia ranked second.
- • Full cost transparency for externally managed private assets remains a persistent challenge, while performance and cost disclosure scores have changed little since the first edition.
Summary
The fourth edition of the Global Pension Transparency Benchmark indicates that heightened scrutiny of public disclosures is producing measurable gains in transparency. Of the organisations reviewed, 69 per cent improved their total transparency scores this year, following 77 per cent in the previous edition. The average fund scored 63 out of 100, compared with 60 last year and 55 in the year prior. The benchmark notes that the highest-ranked funds continue to improve most quickly, with nine of the top 10 scoring at least as high as the most transparent fund of the prior year.
The Government Pension Fund Global retained first place for the second consecutive year, narrowly ahead of CPP Investments, as it did last year. According to the benchmark, CPP Investments, which topped the rankings in the first and second editions, has improved its score by 15 points since 2022, while the Government Pension Fund Global has improved by 25 points over the same period.
At the country level, Canadian funds finished first for the fourth year running, with all five Canadian funds in the global top 11. Australia ranked second this edition, up from fourth in the first edition. The Dutch funds were cited for providing the best public disclosures on costs, and the Nordic funds were recognised for improving transparency scores through strong responsible investing reporting.
The benchmark reports that average scores for performance and cost disclosures have not changed materially since the first edition. Full cost transparency, particularly for funds with externally managed private assets, remains a challenge. Gains have been driven mainly by better disclosures, with some attributable to improved processes and governance.
This year's survey was revised with three objectives: removing or improving overly interpretative questions, keeping the responsible investment section current, and aligning cost disclosure requirements with CEM's Global Reporting Principles. The benchmark states that these methodology changes did not materially affect fund or country rankings. Individual fund scores have been published since 2022, and funds have become more engaged in the review process, which the benchmark says has been fine-tuned as it matures.
The Government Pension Fund Global retained first place for the second consecutive year, narrowly ahead of CPP Investments, as it did last year. According to the benchmark, CPP Investments, which topped the rankings in the first and second editions, has improved its score by 15 points since 2022, while the Government Pension Fund Global has improved by 25 points over the same period.
At the country level, Canadian funds finished first for the fourth year running, with all five Canadian funds in the global top 11. Australia ranked second this edition, up from fourth in the first edition. The Dutch funds were cited for providing the best public disclosures on costs, and the Nordic funds were recognised for improving transparency scores through strong responsible investing reporting.
The benchmark reports that average scores for performance and cost disclosures have not changed materially since the first edition. Full cost transparency, particularly for funds with externally managed private assets, remains a challenge. Gains have been driven mainly by better disclosures, with some attributable to improved processes and governance.
This year's survey was revised with three objectives: removing or improving overly interpretative questions, keeping the responsible investment section current, and aligning cost disclosure requirements with CEM's Global Reporting Principles. The benchmark states that these methodology changes did not materially affect fund or country rankings. Individual fund scores have been published since 2022, and funds have become more engaged in the review process, which the benchmark says has been fine-tuned as it matures.
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