Public Pension Fund Management: Best Practice and International Experience

As J apan's policymakers strive to reform the G overnment P ension I nvestment F und, this paper reviews the core principles and best practices of public pension fund management, with a particular focus on governance and investment philosophy, as distilled from the experience of some of the largest and most advanced institutional investors. It proceeds to compare and contrast three distinct models of institutional fund management: the N orway model, the Y ale/ A ustralia Future Fund model, and the C anada model. The paper concludes by making some preliminary recommendations for the G overnment P ension I nvestment F und reform.