Study On The Investment Risk Of Enterprise Annuity Fund In China

It is an important measure for many countries to establish enterprise annuity plan,which can cope with the aging of the population, including our country. In the early90’sof the last century, China has put forward the enterprise annuity system as the secondpillar pension system. With the aging of the population，China already had66120enterprises to establish the enterprise annuity, benefiting20.56million workers andaccumulating fund about603.47billion yuan by the end of2013. It is very important torealize the safety and high return investment of enterprise annuity fund.The enterprise annuity system started relatively late in China and the capitalmarket’s development is not perfect, so that the enterprise annuity fund investment isoften influenced by all kinds of risk factors. Except that it is difficult to avoid marketrisk, interest rate risk, inflation risk and system risk, China’s enterprise annuity is easilyinfluenced by non system risk including the agency risk, credit risk and etc. because oftaking the mode of trust.The author studies by typical survey and literature search methods. Firstly, itreviewed home and abroad scholars’ mainly theory to study the current situation ofChina’s enterprise annuity development, containing the accumulation and income status.Secondly,the author uses VaR models to describe the necessity of using investmentportfolio to raise enterprise annuity fund’s revenue and discovery that how thedisposition proportion portfolio will influence the risk. Have analyzed the typical case–Changjiang Pension’s Golden Collective Plans, the author identifies the actual assetallocation situation and the risk of enterprise annuity in China. The equity assets have aclose combination with market, so they may face with more market risks. Fixed incomeportfolios have the pursuit of security and are more easily affected by inflation risk andinterest rate risk. The enterprise annuity plan that takes up the split mode wouldencounter complex principal-agent risk. At last, the author absorbs the domestic andforeign advanced areas’experience and lessons, and then puts forward some suggestionsand countermeasures to improve the management system of enterprise pension fundinvestment in China. This author upholds the comprehensive risk management principle and controls therisk by preventing, process controlling and paying. The first is prevention. We mustaccelerate improving the relevant laws and regulations, mobilize the trustee’senthusiasm fully, and identify the specific warning line and warning index system. Thesecond is to improve the enterprise annuity fund investment risk monitoring and controlsystem. We can select the appropriate mode of regulation and supervision system toensure that the external supervision and internal control are effective. Next, we shouldestablish the multi-level information publishing and reporting system, and constantlyoptimize the asset allocation. The third is to implement the risk reserve system strictly.Have learned the advanced experience of the United States and Hong Kong, it is time toimprove the compensation mechanism about the enterprise annuity fund investment risk.