Wharton Pension Research Council Working Papers

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Working Paper

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Large publicly-held pools of assets are playing an increasingly prominent role in the global investment arena. We compare three distinct forms of such public funds, namely foreign exchange reserve funds, sovereign wealth funds, and public pension funds, to highlight their differences and similarities. We review previous studies on ways to better secure prudent and economically sound public fund management practices in these funds, as well as how to evaluate their governance and investment policies and how to better protect the assets from political interference. Drawing from the pension and corporate finance literature, we also link their management to governance practices and country-specific characteristics, and contrast those with empirical findings on linkages with corporate governance.

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Copyright/Permission Statement

©2008 Mitchell, Piggott and Kumru. All Rights Reserved.


Funding for this research was provided by the Economic and Social Research Institute, Cabinet Level-Government of Japan, the Pension Research Council, and the Australian Research Council. We are grateful to Eric Hou for his research assistance and for comments from Hideaki Tanaka, Yoshibumi Aso, Junichi Sakamato and participants at the 2008 ESRI meetings. Opinions expressed herein are those of the authors alone, and not those of any institution with which the authors are affiliated.

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Date Posted: 07 August 2019