Research On The Prudent Obligation System Of Basic Pension Fund Investment Managers

Under the background of the increasing aging population,it is an inevitable choice to relieve the pressure of social security to realize the goal of efficient operation,long-term stable operation and sustainable development of China’s basic endowment insurance fund.Market-oriented investment management is an important way to solve the sustainability problem of basic pension funds.Given the basic pension fund of the dual nature of the trust and the trust and basic pension fund investment,the trust trust model entrusted to the State Council authorized institutions—— National Council of Social security funds,trustee can invest operation,but generally entrusted to professional investment managers investment operations.In the investment and operation of the basic pension fund,the performance of the prudent obligations plays a decisive role in realizing the goal of maintaining and increasing the value of the fund.Therefore,under the background of the increasing aging population and the sudden increase of pension payment pressure,how can the investment managers effectively fulfill the prudent obligation and achieve the goal of maintaining the long-term stable return rate of the basic pension fund is an urgent problem to be solved.Although the prudent person obligation system of basic pension fund investment manager in China has been established initially,there are many problems: first,the lack of specific standards of prudent obligation.China’s relevant laws and regulations only stipulate the principle of the prudential obligation,did not make specific and detailed provisions,the content is relatively vague,the applicability and maneuverability are low.Second,the prudent duty obligation system does not fully reflect the rationality of value investment.The prudential obligation system does not require investment managers to follow the law of value investment,and investment managers do not establish the concept of value investment,and replace long-term value investment with short-term speculation,which is easy to cause operational risk and moral hazard.Third,the lack of prudent obligation system under the trend of responsibility investment.The prudential obligation rules of the investment manager do not clarify the concept of responsible investment.Pension funds have failed to play a positive role for institutional investors aimed at promoting enterprises to assume social responsibility and serve green development.Fourth,the lack of the civil liability restraint mechanism that violates the prudential obligation.The prudential obligation system does not clarify the type of civil liability,liability principle and scope of civil liability compensation of the investment manager violating the prudential obligation,which will reduce the illegal cost of non-prudent behavior of the investment manager,and is not conducive to the goal of maintaining and increasing the value of the basic pension fund.Therefore,China should base itself on the actual system and cultural soil,learn from the relevant system experience of overseas countries,and improve the prudential obligation system of basic pension investment managers.First,improve the standards and content of prudential obligation.China can draw lessons from the Unified and Prudent Investors Law of the United States to specifically refine the content of prudential obligations and define relevant standards,and refine the legal provisions in principle.With the strengthening of the sense of social responsibility,the scope of prudential obligation has also expanded,and the concept of value investment,responsible investment and green investment has also been incorporated into the prudential obligation rules,which enriches its connotation.The second is to establish the rule of prudent obligation centered on value investment.The basic pension investment manager practices the value investment concept,becomes the value digger,discoverer and leader of the capital market,and becomes an important cornerstone and stable force for the development of the capital market.Third,improve the prudent obligation rules for responsible investment.Long-term is a typical feature of basic pension fund,responsibility investment mainly through the economic environment,social development and enterprise management and other long-term risk causes of comprehensive consideration,investment to produce real value of listed companies,provides long-term stable income for pension,this is the investment managers should follow the prudent obligation rules.Fourth,we will improve the civil liability restraint mechanism for violations of prudent investment obligations.Encourage investment managers to abide by the rules of prudence obligation by establishing the type of civil liability and strengthening the responsibility of the investment manager to the beneficiary,so as to realize the long-term and stable income of the basic pension fund.By sorting out the defects of the prudential obligation system,targeted suggestions are put forward,in order to improve the level of prudential obligation of investment managers and achieve the goal of maintaining and increasing the value of the basic pension fund.