Global Public Pension Funds 2004-2014: How Public Pension Funds Change Strategies with Their Investment Portfolio
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Date
2016-05
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Publisher
The Ohio State University
Abstract
Applying public pension funds in eight countries—Canada (CPP), Denmark (ATP), Japan (GPIF), Netherlands (ABP), Norway (GPFG), South Korea (NPS), Sweden (AP), and the United States (CalPERS), I investigate backgrounds, changes in investment strategies, and performance from 2004 to 2014. With comparison among portfolio over the time periods, I find that: (i) public pension funds shifted investments from fixed income to equities; (ii) there is increased investments in global markets transferred from domestic markets; (iii) investments in public markets moved to private markets through alternative investments. Another administrative change in those pension funds is increased in-house management of their investments, and this change is to reduce fees and to exert better control. I also compare investment performances among three sub-periods, pre-crisis (2004-2006), intra-crisis (2007-2010), and post-crisis (2011-2014). The data indicate that all of the eight countries have the lowest returns in intra-crisis; and six out of eight countries represent higher investment returns in pre-crisis compared to post-crisis.
Description
Monthly Research Scholar Award
Keywords
Public pension funds, Investment strategies, Asset allocation, The 2008 financial crisis