Research On Evaluation Of Investment Performance Of National Social Security Fund

Here comes a gigantic challenge for the social security system of every country that it becomes the hotpot and difficult point to do modern research on social security and National Social Security Fund as the global aging draws near. The core issue is how to achieve the goal of hedge and appreciation effectively by what means and through what strategies to cope with the aging crisis. The National Social Security Fund(hereafter called NSSF)is the vital strategic reserve serving as the reserve fund of national pension,which is led directly by the State Council and is mainly used to support the need of social security when the peak time of aging emerges.The NSSF has been put into the capital market and operated to invest for decades, yet no certain uniform standard is achieved to evaluate the investment performance, therefore, evaluation on the investment performance of NSSF is needed. This article evaluates the investment performance of NSSF by balancing its return and risk.This article is divided into6chapters, which are mainly about:Chapter One:introduction of the background of this thesis, and confirmation of the thesis topic.Chapter Two:summarizing certain literature of this field and introducing the view point of the researchers.Chapter Three:introducing and commenting on basic theory which is needed for evaluating the investment performance to establish the solid academic foundation of this thesis.Chapter Four:first provides a basic introduction of NSSF, the principles of investment and combinations of investment, etc are included. Then it illustrates that this article is on organizer’s point, evaluating the total capital performance, which is about the return and risk and confirming the evaluation standard as historical data and industrial data, fully considering the method of evaluating investment risk. Therefore it evaluates the investment performance of NSSF. Chapter Five:in the part of analysis on the return and risk of NSSF, evaluation on return is made from overall finance condition, total return and total rate of return. Calculation of systematic risk and non systematic risk of investment combinations has been figured through CAPM model. Finally evaluation on risk-adjusted return is made with Sharpe Ratio, Treynor Ratio and Jensen Ratio. Conclusion can be reached after comprehensive analysis that though the rate of return on investment is generally higher than inflation rate, certain obvious problems of risk exist, meanwhile compared with investment performance of the same type, it is not dominant in performance, suggesting that the ability of return and risk of NSSF needs to be improved.Chapter Six:providing policy suggestions on the improvement of NSSF by pointing at the problems that NSSF has and being analyzed above and contacting the current economic environment.This article contributes as follows:this article fully analyses the investment condition of NSSF, which indicates that we should transform from focusing on more steady model in the past to the pattern which both steady and appreciation are equally vital. Only in the condition that safety is guaranteed and appreciation of the fund is being made, can we solve the aged-care problem of our country fundamentally.Deficiency may occur as not deep enough when analyzing and not proper in the point of view, structure and logic of the thesis. There will be more directions to do research to be discussed and I hope this article may do certain contribution to the improvement of NSSF.