Investment is very important to maintain and increase the value of pension and to cope with the increasing pressure of basic pension income and expenditure.
According to the report data, in 2019, the equity investment income of the basic endowment insurance fund entrusted by the social security foundation is 66.386 billion yuan, with an investment return rate of 9.03%. Among them, the realized fair value of assets was RMB 43.354 billion, of which the realized return on assets was RMB 23.354 billion.
In 2015, the State Council officially issued the basic endowment insurance fund investment management measures, which stipulates that the pension fund shall be market-oriented investment operation. After the balance of pension funds in each province, autonomous region and municipality directly under the central government is settled and a certain payment fee is reserved, the specific investment amount is determined and entrusted to the institution authorized by the State Council for investment and operation. At the end of 2016, the social security foundation, which takes on the fiduciary role, selected 21 asset management institutions to serve as the securities investment management institutions of basic endowment insurance funds, including professional pension insurance companies, public fund companies, insurance asset management companies and securities companies.
In this mode, the social security foundation adopts the combination of direct investment and entrusted investment to carry out investment operation. Direct investment is directly managed and operated by the social security foundation, mainly including bank deposits and equity investment. The entrusted investment is managed and operated by the investment manager entrusted by the social security foundation, mainly including domestic stocks, bonds, pension products, listed securities investment funds, as well as stock index futures and treasury bond futures. The entrusted investment assets are entrusted by the trustee selected by the social security foundation.
According to the data of this report, as of the end of 2019, the social security foundation has signed entrusted investment contracts with 22 provinces (districts and cities), with the total amount of entrusted contracts exceeding one trillion yuan, reaching 1093.036 billion yuan, all of which are committed minimum guarantee mode with a five-year entrustment period, and the actual funds received are 908.177 billion yuan.
Meanwhile, by the end of 2019, the total assets of the basic endowment insurance fund will be 1076.780 billion yuan. Among them, the direct investment assets are 405.401 billion yuan, accounting for 37.65% of the total assets of the basic endowment insurance fund; the entrusted investment assets are 671.379 billion yuan, accounting for 62.35% of the total assets of the basic endowment insurance fund.
Which side is the strong long-term capital investment?
Compared with the basic pension, social security fund, enterprise annuity and insurance fund are all long-term funds, although their sources and nature are slightly different. In 2019, which party has achieved a higher level of investment income?
However, the rate of return on investment of social security fund and pension fund is the highest in 2019, which is 3.06% and 8.03% respectively.
Source: first finance and economics sorted out according to the public data
Comparing the investment strategies of social security fund and basic pension under improving fund investment and operation ability in their respective reports in 2019, the first financial reporter found that the two are roughly similar, but the strategies of social security fund include increasing private equity fund investment and strengthening overseas market tracking research, optimizing overseas investment structure and enriching overseas bond investment strategy, However, neither company disclosed the specific asset allocation of major categories.
Although the long-term stability is the investment goal of these long-term funds, but due to the different assessment cycle, it will also cause changes in investment decisions. For example, some enterprise annuity investors told the first finance and economics reporter that the current assessment period of annuity plan is one year or even shorter, which will unconsciously increase the short-sighted investment behavior of most pension investment managers, hoping to extend the assessment cycle of annuity investment performance compared with the three-year assessment period of social security fund.
However, if we make a longitudinal comparison over a longer period of time, in addition to insurance funds, the yields of pension funds in the fields of basic pension, enterprise annuity, social security fund and other pension financial categories generally reach a new high in recent years in the market recovery of 2019. In addition to the basic pension, the return on investment of enterprise annuity and social security fund in 2019 has reached a new high in nearly four years.
According to the statistics of first finance and economics reporter, in 2018, when the capital market experienced turbulence, the rate of return of these funds inevitably declined compared with that in 2017. Among them, the negative investment return rate of social security fund was - 2.28%, and the investment return rate of enterprise annuity and basic pension also decreased to a large extent in this year. Although the rate of return on investment obtained by insurance funds in 2019 is lower than that of other types of funds, the volatility of investment return rate in recent three years is the smallest.