Rajkumar, SudhirDorfman, Mark C.2012-03-192012-03-192011978-0-8213-8470-1https://hdl.handle.net/10986/2553The impact of good governance on investment management and performance is immense. Several key factors contribute to good governance within pension funds, appropriate governance structures; well-defined accountabilities, policies, and procedures; and suitable processes for the selection and operation of governing bodies and managing institutions. Not surprisingly, good governance requires leadership by individuals with the expertise, professionalism, and integrity to navigate a fund's direction and withstand pressures from multiple constituencies. In the current context of aging populations in many countries, fiscal burdens on pension funds are increasing. At the same time, the necessity of delivering on pension commitments in contributory schemes means that governance, transparency, and accountability should be of utmost importance to pension fund managers. With these concerns in mind, part three of this book provides useful perspectives from senior managers of public pension funds, international pension authorities, and multilateral institution representatives on the structures, policies, and processes that aim to support good governance. Principally reflecting on the characteristics that have been conducive to good governance, including reform measures undertaken, they also consider policy and investment management measures taken to effectively manage fiscal risks, including those that emerged from the financial crisis.CC BY 3.0 IGOACCOUNTINGACCOUNTING STANDARDSALTERNATIVE ASSETASSET CLASSASSET CLASSESASSET GROWTHASSET MANAGEMENTASSET MANAGERSASSET VALUESASSET-LIABILITY MANAGEMENTAUDIT COMMITTEEAUDITSBANKING SECTORBASIS POINTSBENEFICIARIESCAPITAL MARKETCAPITAL REQUIREMENTSCASH FLOWSCODE OF CONDUCTCOLLATERALCONFLICT OF INTERESTCOPYRIGHT CLEARANCECOPYRIGHT CLEARANCE CENTERCORPORATE BONDSCREDIT RISKCURRENCYCURRENCY HEDGINGCURRENCY RISKDEFICITSDEGREE OF TRANSPARENCYDEMOGRAPHICDERIVATIVESDISCOUNT RATESDOMESTIC CAPITALDOMESTIC CAPITAL MARKETSDOMESTIC CURRENCYEMPLOYEES PENSIONEMPLOYEES RETIREMENTEQUITIESEQUITY INDEXEQUITY INVESTMENTSEQUITY MARKETEQUITY MARKET VOLATILITYEQUITY MARKETSEQUITY RETURNSEXPOSUREEXPOSURE TO RISKSFAIR VALUEFIDUCIARY RESPONSIBILITYFINANCIAL ASSETSFINANCIAL CRISESFINANCIAL CRISISFINANCIAL INSTITUTIONSFINANCIAL MARKETSFINANCIAL STABILITYFINANCIAL SYSTEMFISCAL BURDENSFLEXIBLE EXCHANGE RATEFOREIGN CURRENCYFOREIGN CURRENCY EXPOSURESFOREIGN EXCHANGEFOREIGN EXCHANGE MARKETSFOREIGN INVESTMENTFOREIGN MARKETSFUND MANAGEMENTFUND MANAGERSGLOBAL MARKETSGLOBAL PENSIONSGLOBAL PRIVATE EQUITYGOOD GOVERNANCEGOVERNANCE MECHANISMSGOVERNMENT BONDSGROSS DOMESTIC PRODUCTHEDGE FUNDHEDGE FUNDSHEDGE RATIOHEDGE RATIOSHEDGESHOLDINGHOLDINGSHOME CURRENCYHUMAN CAPITALHUMAN DEVELOPMENTILLIQUIDITYINFLATIONINFLATION RATEINFORMATIONAL ASYMMETRYINSTITUTIONAL FUNDSINSTITUTIONAL INVESTMENTINSTITUTIONAL INVESTORSINSURANCEINTEREST RATEINTEREST RATESINTERNAL CONTROLSINTERNATIONAL BANKINTERNATIONAL DIVERSIFICATIONINTERNATIONAL INVESTMENTSINVENTORYINVESTINGINVESTMENT CAPABILITIESINVESTMENT CAPITALINVESTMENT CHOICESINVESTMENT CORPORATIONINVESTMENT DECISIONSINVESTMENT FUNCTIONSINVESTMENT FUNDINVESTMENT GOVERNANCEINVESTMENT HORIZONINVESTMENT MANAGEMENTINVESTMENT MANAGERINVESTMENT MANAGERSINVESTMENT MARKETSINVESTMENT OPPORTUNITIESINVESTMENT POLICIESINVESTMENT POLICYINVESTMENT PORTFOLIOSINVESTMENT PROCESSINVESTMENT PROFESSIONALSINVESTMENT RISKINVESTMENT RISKSINVESTMENT STRATEGIESINVESTMENT STRATEGYLEVEL OF RISKLIABILITYLIQUIDITYLIQUIDITY MANAGEMENTLOCAL CURRENCIESLOCAL CURRENCYMACROECONOMIC STABILITYMARKET VALUESMONETARY AUTHORITIESMUTUAL FUNDOLD-AGE INCOMEOPPORTUNITY COSTSOPTIMAL INVESTMENTOUTPUTOUTSOURCINGPAYMENT OBLIGATIONSPENSIONPENSION ASSETPENSION ASSETSPENSION CONTRIBUTIONSPENSION FUNDPENSION FUND ASSETPENSION FUND ASSETSPENSION FUNDSPENSION LIABILITIESPENSION PRODUCTPENSION PRODUCTSPENSION PROVISIONPENSION SYSTEMPENSION SYSTEMSPENSIONSPOLICY RESPONSESPOLITICAL RISKSPORTFOLIOPORTFOLIO ALLOCATIONPORTFOLIO RISKPORTFOLIOSPRICE DISCOVERYPRIVATE EQUITYPRIVATE PENSIONSPRODUCTIVE INVESTMENTPROVIDENT FUNDPRUDENTIAL REGULATIONPUBLIC ACCOUNTABILITYPUBLIC COMPANYPUBLIC PENSIONPURCHASING POWERRATES OF RETURNREAL ESTATEREFORM PROGRAMREGULATORSREGULATORY AGENCIESREGULATORY CONSTRAINTSREGULATORY ENVIRONMENTREGULATORY STANDARDSREPLACEMENT RATEREPLACEMENT RATESRESERVERESERVE FUNDRESERVE FUNDSRESERVESRETIREMENT AGERETIREMENT SAVINGSRETIREMENT SYSTEMRETURNRETURNSRISK AVERSIONRISK DIVERSIFICATIONRISK FACTORSRISK MANAGEMENTRISK MANAGEMENT POLICIESRISK MANAGEMENT SYSTEMSRISK POOLINGRISK PREMIUMSRISK PROFILERISKY ASSETSSAFER ASSETSSAFETY NETSSAVINGSSAVINGS ACCOUNTSSECURITIESSOLVENCYSWAPSWAPSTAXTRADINGTRADING COSTSTRADING VOLUMETRANSACTIONTRANSACTION COSTSTRANSITION ECONOMIESTRANSPARENCYTREASURYTRUSTEETRUSTEESTURNOVERUSE OF DERIVATIVESVALUATIONVALUATIONSWorld Bank10.1596/978-0-8213-8470-1