Public Pension Reserve Funds Investment Management Strategies: International Comparisons And China's Implications

Public pension reserve fund is a long-term strategy reserve fund with which a nation cope with future financial payment crisis of social pension, so its investment management has a significant impact on a national's social security system's sustainable operation and development, while the effective' management and safe investment operation of Public pension reserve fund is the key of achieving the social security system's objectives. Therefore, at the new socio-economic environment of the challenges of population aging becoming serious, various countries' pension fund's financial crisis becoming more and more growing, how to efficiently invest Public pension reserve fund, scientifically and reasonably set out investment management strategy, and enhance investment and operation performance of the fund, in order to ensure that such a vast sum of money keep maintenance and revaluation, and achieve better social benefits, which has become a very practical problem in the social security field.The paper includes six parts. The first part briefly described background of the topics, research significance, research ideas and methods, by systematical analysis, basing on the background of paper's research systematically combed domestic and international research literature of the Public pension reserve funds, and pointed out that the papers may reach new points and shortcomings.The second part defined the concept, characteristics, function of Public pension reserve funds and its development status in the global.The third part briefly described several different kinds of investment management strategies of Public pension reserve funds, such as central management investment strategies and independent management investment strategies, sovereign pension reserve funds investment strategies and social security reserve funds investment strategies, single-objective investment strategies and multi-objective investment strategies.The fourth part researched and analyzed the profile of investment management system and investment experience of several major country's Public pension reserve funds, by international comparisons, This part focused on the four representative countries'(Ireland, France, Norway and New Zealand) specific practice in the Pension reserve fund and its investment management, respectively represented the investment management structure, investment and operations policy and regulatory thinking, and finally analyzed its commonalities in investment management experience, tried to explore some experiences and revelation which is beneficial to the investment management of the National Social Security Fund.The fifth part basing on the organizational structure, asset allocation, as well as the investment income of the National Social Security Fund's, analyzed the National Social Security Fund's investment management status, explored and interpreted some issues on the National Social Security Fund's investment and operations management, such as National Social Security Fund's ill-formed management structure and excessive administrative costs; the fund has not yet formed an effective and powerful oversight mechanisms; the phenomenon of the fund investors' "vacancy" and "offside" is existent; the fund's investment channels is narrow, its investment structure is irrational and its rate of return on investment is low.The sixth part suggested that we should revise and perfect the laws and regulations of National Social Security Fund; compile a fund's investment strategic plan which can adapt to the characteristics of fund's different periods; actively explore a diversified investment strategy and fund investment projects' innovative ways; introduce a competitive mechanism and select domestic and foreign fund investment and financial institutions through the open bid; increase the investment ratio of commissioned fund and perfect commissioned investment mechanism; perfect fund governance mechanism and set up a supervisory system that combines, checks and balances internal and external supervision, in order to provide more useful information and reference value in improving and perfecting the National Social Security Fund's investment management strategy, and further realize the unique role and great value of the National Social Security Fund in the whole social security system.