Analyzing On The Pension Funds Investment And Management Based On The Asset Allocation Model

Old-age insurance as an important of social system, is directly related to social stability and sustainable economic development. In recent years, since the increasing pressure of population aging, the partial "Idle Account" operation of personal accounts of pension funds has became a widespread concerned issue. Moreover, with the expansion of pension funds, the investment operational moralization has also been made a higher requirements. Coupled with the internal pressure, which is the volatility of the national capital markets, and the external pressure, which is the appreciation of RMB, the importance of the health continuing operation and the increase of value of the pension fund becoming more and more prominent.Firstly, this paper analyzed the international pension fund investment management model, on the basis of the operation of pension insurance funds and the current situation of economic development of our country. And then, based on the study of China’s old-age insurance system reform and the current benefits level, it made a research on the return on investment of our national pension fund by using the Portfolio Theory by Markowitz for choosing an appropriate investment method. Lastly, the paper presented the corresponding recommendations and adjusting measures to effectively keep and increase the value of pension funds and to better response to the pressure of paying for the pension fund caused by population aging. The combination of the qualitative analysis and quantitative analysis methods were employed in this research. The weighted average yield of the data of One-year Deposit rate, Five-year Treasury Bill rate, the Shanghai Composite Index and Shenzhen Composite Index, which is from1998until now, is the digital base of the research. By using the empirical analysis according to the portfolio model of Markowitz, this study has identified the proportion of the pension funds in different financial investment instruments to optimize the benefits, under the current investment environment and economic conditions. At the same time, an exploratory research on how to optimize the asset allocation of pension funds in the condition of relaxation of the restrictions on investment, for achieving the goal that increasing the yield of investment and improving both safety and liquidity as well.