Public pension funds in many countries have suffered from poor investment performance due to weak governance, government interference, and lack of transparency. New funds in Norway, Canada, Ireland, and New Zealand have improved by focusing on independence, insulation from political pressures, and evolving investment strategies. Initially, they used external passive management but now also employ internal active management and invest in alternative assets. These changes have led to better performance and can serve as a model for other countries looking to modernize their public pension funds.