The Asset Allocation Study Of China’s Sovereign Pension Funds

With the advent of the era of aging-pension payments increasing financial pressure. Although the huge pension restructuring implicit debt will eventually gradually digested in the coming decades, the funding gap is gradually emerging and increasingly large.In this paper, it confirmed the necessity and feasibility of the establishment of a sovereign pension funds.The article made a comparative analysis of the Norwegian global pension funds and the Russian National Welfare Fund, summed up the useful experience for China. China can establish a sovereign pension funds, the source of funds is huge foreign exchange reserves. The Sovereign Pension Funds and Social Security Fund and personal accounts pension funds can build a complete pension system, responding to future demands for pension payments.According to the research report of foreign countries, the ninety-five percent of income of the fund can be explained by the asset allocation. So the article focused on the asset allocation of Sovereign Pension Funds. The monetary weight of Special Drawing Rights (SDR) can better reflect the composition of the global economy and trade flows. Thus article select the Americas, Europe, the emerging market countries as investment areas. The article concluded that, on the basis of the destination (such as Europe and the United States), Sovereign pension funds can share fully in the investment income of the emerging market countries. In Europe, the Americas, the emerging market countries, Sovereign pension funds can make Flexible asset allocation in the stock market, bond market, the global real estate market, and commodities market and so on.