Measuring And Managing Separate Investment Risk Of Pension Funds

It is important to keep the investment of pension fund for the social security system. Pension fund are accumulating rapidly and coming into being a great power of capital. Because of this, how to evade and manage the investment risk become the main problem in the whole social security system. Basing on the development of the investment of pension fund, it follows a track as from single investment to separate investment in order to reduce risks.The endowment insurance system of China has broken away from the old system, more and more investment tools are being used in the pension fund investment. However, the investment risks of pension fund are also becoming distinct and multiform as the process of economy system reform. This status is mainly due to the faulty circumstance and management of investment in China. The separate investment of pension fund is the main way to keep away the investment risks, while it will introduce many new risks. Therefore, it needs to be controlled in a macrocosm point of view.The paper discusses the main contents of the separate investment of pension funds combining with its necessity and economic significance. Then the paper analyses the main risks in the main investment tools and the fabricate risks. Basing on the analysis, the paper analyses how to control and manage these kinds of risks. The paper's clue can be described as this: put forward the question (the main content of separate investment of pension fund), analysis the question (the factors of this kind of risk), and resolve the question (how to keep away and manage the risks). In the process of analysis, the paper uses many analytical methods such as criterion analysis, demonstration analysis, systems analysis, ration analysis and so on.The paper is made up of four parts: the first part introduces the main modes of the separate investment of pension funds including the reasons and its economic significance. The second part analysis the risks of the separate investment of pension funds, including saving fund and debenture, stock investment and fundmarket. The third part discusses how to control and manage these different kinds of risks, including the main principles of investment, risk management of the main investment tools. The fourth part analyses the method of management of fabricate risks and whole risk.