Increased scrutiny on public disclosures is “driving measurable improvements” in pension transparency, the fourth Global Pension Transparency Benchmark has revealed.

The benchmark compiled by Top1000funds.com and CEM Benchmarking, and consists of 75 funds across 15 countries, found that 69 per cent of reviewed organisations improved their total transparency score on the previous year. However, this is slightly lower than the 2023 index, when 77 per cent improved their score.

In 2024, the average fund scored 63 out of 100, versus 60 last year, and 55 in the year prior. Benchmark data shows that funds at the top of the rankings continue to improve the most. Nine of the top 10 most transparent funds scored the same or higher than the most transparent fund last year.

Despite Norway’s Government Pension Fund Global taking the top spot for a second year, Canadian funds finished first among the countries reviewed, with all five Canadian funds finishing within the top 11 funds globally. The Government Pension Fund Norway, which invests domestically, also finished in the top 10, at sixth place. Just one other European fund, finished in the top 10, the Netherlands’ PFZW, in tenth place.

“The performance of the most transparent funds and, generally, the improved transparency of responsible investing and governance disclosures are driving funds to new heights. The average scores for performance and cost disclosures haven’t changed materially since the first edition of the benchmark. Providing full cost transparency, especially for funds with externally managed private assets, continues to be a challenge,” benchmark analysis revealed.

This year, the survey was updated with three goals: Removing or improving overly interpretative questions; keeping the responsible investment survey current; and aligning the cost disclosure requirements consistent with reporting best practice as set out by CEM’s Global Reporting Principles. However, the change in methodology hasn’t materially impacted fund or country rankings.

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