| The essay focuses on investment of enterprise pension funds. In recent years, the severer aging of population and rigidity of basic endowment insurance triggers the trend of establishing and improving pension system in China. The current reforms on endowment security system in China and any other countries all go towards the model of three-pillar pension system, in which the enterprise pension is the second pillar to upgrade the low protecting level of basic endowment insurance and meanwhile to play an active role in market management. The enterprise pension market of China intends to develop at an increasingly high speed since the start in 2005 and shows a great potential for advancement. Whether the hedge and increment of enterprise pension investment can be realized will influence life standards for retirees directly. It has deep implications in practice to have a view of the real conditions of enterprise pension's application and the current problems in this field and to find more scientific methods to raise the level of application and investment of enterprise pension funds.The essay follows the principle of emphasizing both theories and practice and qualitative and quantitative analysis. According to the operating process of enterprise pension investment, the essay covers the following contents for study: financing management of enterprise pension for analyzing the initial channels through which enterprise pension comes about; the hedge and increment of enterprise pension which is the most important factor in the process of investment and operation, and whether pension fund could succeed on that aspect directly determines the activeness in participating in enterprise pension plan for employees, the living level of retirees and even the final effectiveness of the whole pension plan; implementing the effective inspection and management given the risk factors in enterprise pension investment; assessment and surveillance on performance of enterprise pension investment in which the contents and procedures related to performance assessment, the real nature and current situation for surveillance will be discussed.Because the data about investment and operation in the field of enterprise pension fund is not in public, the essay focuses on those related to profits and revenues for portfolio investment in each enterprise in a certain period through private materials. After considering the asset distribution, profit level and risk, the author analyzes the current condition on operation for enterprise pension funds in China and compares profits of them to those of security funds. It is shown that enterprise pension funds achieved a rather stable investment growth compared to equity fund in 2007 and 2008 when stock market experienced many severe fluctuations in China. The reasons why they had a relatively good performance are that there are several strict rules and principles for asset distribution and risk control for enterprise pension funds and also that the ratio for asset distribution in such funds is flexible which means a downturn to zero in equity assets and leads to stable profits. Therefore despite of the slump in stock market, scales of enterprise pension funds were expanding largely, which is opposite to the portfolio market situations.With the analysis on foreign enterprise pension investment, it is found that there are some problems in investment as follows. Firstly, lack of integral and uniform preferential policies of enterprise pension taxing has a negative effect on financing for pension funds. Secondly, the ineffectiveness in the capital market also functions negatively for operation of funds. Thirdly, it's rather difficult for medium-sized and small enterprises to establish pension plans to invest on their own. Fourthly, the investment tools for pension funds are to some degree few and of no large scale. Fifthly, there's no bottom line for investment security which means employers and employees must take risks; finally, there is no uniformed surveillance while in reality the situation is facing a system for surveillance from different sides and entities currently. Considering the problems mentioned above, the author has made some suggestions on how to improve the operation of enterprise pension funds' investment. One of those is to implement EET preferential policy for taxing to secure financing of pension funds. Another is to promote interactive development of markets in both pension funds and capitals. And furthermore, another efficient suggestion is to regulate the management on pension plans immediately to solve the problem of having difficulty in investment operation for medium and small enterprises. The fourth is to extend the scales of investment for pension funds so as to raise the profit level as well as to set up a reimbursing system for them in order to protect the rights of beneficiaries. At last, the author advises furthering surveillance on enterprise pension investment and establishing complete regulations on information publication and reports. |
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