According to the China Securities Journal, the annual report of the Social Security Fund of the National Council of Social Security Funds shows that in 2019, the investment income of social security fund equity was 291.718 billion yuan, and the investment yield rate was 14.06%. This is much higher than the social security fund’s average annual investment return rate of 8.14%since its establishment.
The relevant person in charge of the National Council of Social Security Fund said that the social security fund adheres to the philosophy of long-term investment, value investment and responsible investment, and conducts investment operation management in accordance with the principles of prudent investment, safety first, risk control, and increased returns to ensure Fund safety and value preservation and appreciation.
Investment income rebounds sharply
According to the report, in 2019, the social security fund equity investment income was 291.718 billion yuan, an increase of 7.12 times compared with 2018. Among them, the realized income was 94.480 billion yuan (realized yield rate of 4.64%), and the fair value of transaction assets changed to 197.238 billion yuan.
The relevant person in charge of the National Council of Social Security Fund said that in terms of investment operation and management, in 2019, the social security fund will closely track domestic and foreign macroeconomics, capital market situations and policy trends, strengthen analysis, research and judgment, and strive to enhance investment strategies The scientific nature of the company has continuously improved the effectiveness of asset allocation. In accordance with market development and changes, scientifically prepare and implement asset allocation plans, rationally arrange investment rhythm, strengthen active management, enhance predictability and forward-looking, implement effective dynamic allocation, and strive to increase excess returns.
“Social security funds focus on long-term investment and value investment in terms of investment style. Therefore, investment performance is reflected in long-term performance. Looking at the performance in recent years, overall, the volatility of the investment yield of social security funds has narrowed and dispersed The degree of convergence. This shows that the investment level of social security funds is constantly improving and the investment management concept is constantly maturing.” said Dong Dengxin, director of the Institute of Financial Securities, Wuhan University of Science and Technology.
Total assets continue to grow steadily
The annual report shows that at the end of 2019, the total assets of the Social Security Fund amounted to 2.628.566 billion yuan, an increase of 17.59%from the end of 2018.
In addition, at the end of 2019, the total social security fund equity was 2,422.560 billion yuan, including:national social security fund equity of 2,137,651 billion yuan, personal account fund equity of 157.137 billion yuan, and local entrusted capital equity of 127.772 billion yuan.
In terms of financial allocation to the National Social Security Fund, in 2019, 46.493 billion yuan was allocated to the National Social Security Fund. Among them:the central budget allocated 10 billion yuan, the lottery public welfare fund was 36.449 billion yuan, and the state-owned shares reduction fund was 44 million yuan.
As of the end of 2019, a total of 961.65 billion yuan of funds and shares have been allocated to the National Social Security Fund. Among them:the central fiscal budget allocates 339.836 billion yuan, state-owned shares reduction and transfer funds and shares 284.351 billion yuan (97.139 billion yuan in reduction funds, 102.857 billion yuan in domestic shares transfer, and 84.355 billion yuan in overseas shares), and 337.463 billion yuan in lottery public welfare funds .
Chen Wenhui, vice chairman of the National Council of Social Security Fund, stated at the 2020 Global Wealth Management Forum’s first quarter summit that the transfer of part of the state-owned capital to enrich the social security fund can not only make up for the”old people” and”middle people”. Insufficient payment or payment, and the need to pay in full after retirement, can alleviate the pension income and expenditure gap caused by the aging of the population, achieve intergenerational equity in pension security, and further support tax reductions. fee.
Source:China Securities Journal