Pension funds are rightly viewed as an important source of long-term capital in many countries. Following the global financial crisis of 2008, the theme of long-term investment and the role of institutional investors as providers of domestic capital for economic development has been high on policy makers’ agendas. Despite generally positive findings linking pension system development and economic growth, there are also plenty of disappointments. In too many countries, pension fund investments remain highly concentrated in bank deposits and traditional government bonds. This lack of diversification can be explained by many factors, for instance, unsupportive macro conditions, shortage of investment instruments, poor governance, limited investment knowledge, and regulations with restrictive asset class limits and excessive reliance on short-term performance monitoring.