Research Into The Fund Management System Of China’s Individual Pension Accounts

In recent years, with the aging of the world population and the extension of life expectancy, the pay-as-you-go pension system is confronting serious challenge on financial sustainability. Consequently, several countries began to adjust system parameters, such as reduce benefit level、increase the contribution rate and the retirement age. At present, the individual-account pension systems were starting to attract much attention at home and abroad, which were emphasizing individual responsibility、implementing full accumulation、having the assets management functions. As an important innovation, it firstly appeared in Malaysian central provident fund in 1951. Then Singapore established the similar system in 1955, Chile founded the privately-operated individual-account pension system in 1981 and Sweden built the nominal account system in 1994. Continuous explorations and innovations render the individual pension system, as a new institutional pattern, gradually guide the way for international pension system’s reformation and development.After we firstly put forward the conception of individual-account pension in 1993, we established the basic pension system, which was the combination of social pool account and individual account. Owning to the lower overall administrative level、the larger transition cost and all the issues made it long-term be in "combination、mixed management、empty account operation". Though we began trails to fully fund personal pension accounts, the government did not enacted specific investment and management procedures. Through the bank deposit and treasury bonds, the rate of return was much less than the rate of inflation thus caused serious welfare losses. It is undoubtedly that how to break the mechanism of individual pension fund’s management and utilization will be the key to the sustainable development of Chinese basic pension system.Therefore, this thesis emphatically introduced Singapore’s central provident fund、Hong Kong’s mandatory provident fund and Sweden’s mixed pension fund, in order to research the management system of Chinese individual pension fund. Through collecting a large amount of historical data, we made a comparative analysis comprehensively about them from investment restrictions、asset allocation、investment gains、operation cost and risk controlling, then acquired a lot of valuable experience for the reformation of Chinese individual-account pension system. At the same time, we also analyzed the internal and external institutional environment of perfecting the management system of Chinese individual-account pension fund. Finally, according to the history and the development tendency, we forecasted the accumulation scale of Chinese individual pension fund in the future 40 years. Then we constructed a new management system from investment、operation and risk control.