The Research On Investment Instruments And Portfolio Of Occupation Pension Fund In China

TopicSince 1970’s, there has been a great surge of reform around the world in endowment insurance system after the appearance of aging crisis. Each country around the world has put forward the idea of setting up enterprise pension system and has put it into effect. Pension, is a supplementary endowment insurance, which is sponsored by companies for the purpose of improving employee’ retirement living standard according to national regulations and their economic conditions. The pension market is and will be prosperous in the foreseeable future.Under the impact of so-called "grey hair wave",the occupation pension system will play more important role as protecting the society from financial crises caused by increased pension expenditure. No matter what kind of asset management or supervising system it will choose, the pension fund should put priority to the expected return on investment. In this paper, we make a demonstration towards China’s pension fund investment income objects and investment portfolio. However, the performance of the occupation pension in China is much lower than that in the western countries. The limited investment instruments as bank debts and treasury bonds and extremely low investment return, and there is a great pressure of preserving and increasing the pension investment.Main Contents and Views of the ThesisThis text is divided into seven major parts. The structure is as follows: In chapter one, we give a brief introduction on the theories of the occupation pension, including the permanent income theory, life-cycle model theory, human capital depreciation and deferred wage concept. In the end, we put forward the object of the study in this thesis.In chapter two, we have a review of its development history, and, we analyze The Measures for the Management of Enterprise Annuities Fund.In the end, we focuses on the subject and rules on the occupation pension fund, and we get the conclusion that the. investment is a key process of occupation pension.In chapter three, we give a brief description of optional instruments of the occupation pension. In accordance with the categories defined by The Measures for the Management of Enterprise Annuities Fund, we analyze some instruments of optional. In this chapter, we also discuss in details the investment return and risks of bank deposit, bonds, stocks and insurance products.In chapter four, we analyze the investment tools of OECD countries, and find out the portfolio and rules of occupational pension in these countries.In chapter five, we discuss the return of China’s occupational pension, choose the VaRiable factors according to the regulations and make an empirical analyze on the investment return of our occupational pension, which is trying to find out the tendency and the influence factors of the current investment objects.In chapter six, we analyze the general situation of the financial market and the national policy on the occupational pension fund investment. Bases on the VaR model, this paper use some historic data to simulate the investment of occupational pension fund.At last, we make analysis about the result and put forward some advice.This paper is mainly talk about the investment tools of china’s occupational pension. We make quantitative analysis on main investment tools in present pension market for discovering factors influencing pension yield. It is found that nominal yield influencing actual yield positively, therefore an effective capital collocation should have relatively higher percentage of investment tools with higher yields when nominal yield falls. What is more, CPI has stronger influence on actual yield than nominal yield, therefore investment tools that can resist on inflation, is suitable for pension investment.The Methord of the ThesisThis paper sufficiently reviews both domestic and international theoretical studies and practical experiences regarding social insurance reforms, by using the method of incorporating theoretical framework and real issues as well as combining empirical and standard analysis.The Innovation of the ThesisThe major innovation of the article:First, we offer a different view and analysis method from investment factors, while most of the research now is focusing on systems and policies factor. Here, we analyze the value of the investment tools, and trying to find out a better way of investment portfolios in pensions. Second, based on the VaR model, this paper use some historic data to simulate the investment of occupational pension fund. Finally, we analyze the investment tools of occupation pension in OECD countries.Questions to be StudiedThere are still some questions to be discussed or further studied due to the limitation of the thesis structure and my competence. For instance, the regulation on occupational pension fund hasn’t been talked about due to the restriction of the thesis. The empirical analysis on occupational pension investment and the tools of the investment is not perfect because of the lack of information and data. In addition to this, the available of the tools of occupational pension investment should be more detailed.