Endowment Insurance Fund Operation Investment Model Research

After entering the new century, the speed of aging of population in China tend to be faster, which makes pension funds expenditures greatly increased. In recent years, the level of China’s inflation rate become higher and more volatile, not only effect the depreciation of the pension funds, but also lead to rising living costs, while the growth of retirement benefits are rigid, those who want to maintain the basic standard of living will need more pension funds, so that the pension fund expenditures must be increase. At present, the investment channels of the Pension Funds in China is relatively narrow, can only buy treasury bond and deposit in bank. The data show that in November2000to December2001, credited to the pension funds in the state’s financial capital was60.726billion which invest in bank deposits, treasury bonds, the cumulative investment income was only928million. From2003to2008,within five years, the investment income of the Pension funds in China was2.18%, in the same period the average of inflation rate was2.2%, the actual investment income rate was negative. How to change the low income status of the Pension funds in China, reduce or eliminate the payment pressures caused by aging and financial crisis brought by the inflation has important theoretical and practical significance.Private Equity has the characteristics in period and income rate which can match with problems of the insurance funds, in countries with relatively mature private equity, pension funds, insurance funds become the primary source of funding.In recent years, private equity funds in China has made considerable progress, but it still in the early stages, there are many problems in exit channels, market access, regulatory system, professional personnel training. This paper presents invest the development of pension fund in Private Equity to cope with the financial crisis, and pointed out the main problems and propose appropriate countermeasures, ensure the pension funds in high yield under the premise of the safe to maintain and increase their value.On the basis of analysis pension funds theory and situation, this paper make a demonstration towards China’s pension fund investment options, investment income objectives and investment portfolio, then discuss the investment risks and regulatory issues on the pension funds. There are total6sections.Chapter1, Introduction:A brief statement to the purpose and significance of the topic,research the result in home and abroad,point out the Innovation of this paper.Chapter2,summaries of pension funds investment theories and concepts from the investment principles and investment models prospective.Chapter3,study the related issues of China’s pension funds investment,discusses the operation of China’s pension investment scale, the do a detailed analysis of the present situation, and evaluate the situation. Finally, analysis the constraints and the causes in the development of China’s pension fund investment.Chapter4,Focus on comparison and analysis of China’s pension fund investment model. Through a portfolio income risk empirical research on investment tools, draw a conclusion:add the way of investment to meet the needs of China’s basic pension fund in keeping and increasing the value.Chapter5, propose the feasibility of private equity investment, and build the optimal portfolio of the new model of China’s pension fund.Chapter6,conclusions and suggestions, through the three levels:Improve and perfect capital markets, pension insurance, the legal system and strengthen supervision of pension fund investment...