Governance and Investment of Public Pension Assets Practitioners' Perspectives

The global financial crisis of 2008-09, increasing fiscal pressures, and aging populations have focused the attention of policy makers in many countries on public pension finances. In this context, what role can effective governance and optimal investment of public pension assets play in delivering affordable pensions? This book seeks to provide insight on these issues, drawing on the experience of more than 30 practitioners from every region of the world: senior public pension fund officials, policy makers, regulators, and experts on the governance and investment of pension and other institutional assets. Examples and case studies show: (i) The linkages between governance structures and investment outcomes; (ii) How to translate good governance principles into operational policies and practices; (iii) Options to manage longevity and investment risks of defined-contribution scheme members; (iv) The value of defining a pension fund's overall risk-return profile; (v) Ways to incorporate a pension fund's liabilities in the design of its investment strategy; (vi) The pros and cons of managing assets in-house versus outsourcing to external managers; (vii) The benefits of, and political impediments to, diversification into international markets; (viii) The importance of a sound and comprehensive currency hedging policy; (ix) Approaches to investing in alternative asset classes. Pension fund officials, policy makers, and regulators will find this to be an accessible guidebook. It provides practical, real-world examples of how to address challenges they may face in the governance and investment of public pension assets. Most importantly, the book will encourage an ongoing dialogue on how to deliver affordable pensions.