Every reporter:Ren Fei, every editor:Xiao Ruidong
The latest 2019 National Social Security Fund Annual Report shows that the social security fund’s investment yield of 14.06%has exceeded the historical level again, and the income from the securities price difference The return of equity investment funds has become the two major sectors with the highest returns of all investment projects. Not only does it play a role in the allocation of funds of funds in the primary market, it also injects more long-term and stable capital into the secondary market.
Some analysts pointed out that the social security fund not only forms an organic combination from the capital level slice to the governance level FOF structure in the field of equity investment, but also connects other long-term capital to the long-term A-share investment in the secondary market. Set an example.
The growth rate of equity investment income exceeds 100%
On September 11, the National Social Security Fund’s 2019 Annual Report (below The report (referred to as the report) announced that as of the end of the reporting period, the total assets of the social security fund were 2.63 trillion yuan, and the direct investment assets were 1.04 trillion yuan, accounting for 39.60%of the total assets; the entrusted assets were 1.59 trillion yuan, accounting for about 60.40%of the total assets.
From the perspective of investment performance, in 2019, the social security fund equity investment income was 291.718 billion yuan, and the investment yield was 14.06%. Among them, the realized income was 94.480 billion yuan (realized return rate of 4.64%), and the fair value of transaction assets changed to 197.238 billion yuan.
It is worth noting that since the establishment of the Social Security Fund, the average annual investment return rate is 8.14%, and the cumulative investment return is 1.25 trillion yuan. The investment return rate in 2019 has greatly exceeded the historical average. Every reporter found that the return of equity investment funds rose sharply that year, and the rate of return rose by about 127%year-on-year.
Social Security Fund Income Statement (2019)
Picture source:National Council of Social Security Fund
According to the investment method of the social security fund, the equity investment fund is operated by the social security fund through direct investment, which is equivalent to the investment form of the fund of funds. According to data from Qixinbao, there are currently 28 funds invested by the Social Security Fund, including the Shanghai State Investment Cooperation Development Equity Investment Fund Partnership (Limited Partnership), Mianyang Science and Technology City Industrial Investment Fund (Limited Partnership), and China Government-Enterprise Cooperation Investment Fund Co., Ltd. etc.
From the LP attributes and GP qualifications of related funds, it is not difficult to find that most fund managers have a background in government-enterprise cooperation, and they also have a specific industry layout. From the perspective of investor structure, it is not entirely the source of state-owned assets.
In this regard, Wang Zhongmin, the former vice chairman of the National Council of Social Security Fund, once publicly stated that from the perspective of capital, only the fund of funds at the top level can combine state-owned capital, social capital, private capital, Family wealth and even the wealth of natural persons can be organically combined at the LP level by nature, scale, and structure, which can be invested layer by layer, forming an organic combination from the capital level to the governance level of the fund of funds structure.
In addition, social security funds have also made substantial profits by directly investing in a large number of state-owned enterprises, central enterprises, and even high-quality private enterprises. According to known data, the Social Security Fund has made 51 project investments in the direct investment sector, with an average annual investment of about 4. Among the 28 investment events for which the amount can be queried, the social security fund has invested a total of nearly 82.932 billion, with an average single investment of about 2.962 billion, 15 with a single investment of more than 100 million, and 7 with a single investment of 10 billion or more , The maximum investment amount is as much as 15.52 billion.
Related projects mostly focus on strategic financing, private placement and A rounds, but the amount invested generally exceeds general market investment. Coupled with the requirement that the total investment of the social security fund does not exceed 20%of the monetary assets allocated to the fund based on the cost, the direct investment of the social security fund is often”stopped” without actual holding.
Securities spread income increased by 679%year-on-year
In addition to the substantial benefits from equity investment, the social security fund’s securities spread income increased year-on-year Nearly 679%. For a long time, as a symbol of long-term funds, social security funds have been regarded by market participants as an important basis for investment decisions. According to the reporter’s statistics, as of the end of last year, a total of 818 stocks have positions in social security funds behind them.
Among them, a total of 188 stocks have been added to the position, the largest change is the Agricultural Bank. Wind statistics show that the National Council of Social Security Fund increased its positions in Agricultural Bank of China by 13.7 billion shares last year, and the market value of the positions increased by 52.9 billion yuan. In addition, the Social Security Fund has also lightened its position on 163 stocks and built a new position of 300 stocks. Among them, Industrial and Commercial Bank of China and PICC received 12.3 billion shares and 3.8 billion shares respectively, and the market value of their positions increased by 72.5 billion yuan and 28.9 billion yuan respectively.
From the statistics of sector distribution, social security funds have invested the most in the main board; followed by the small and medium-sized board, the ChiNext board and the science and technology innovation board. In terms of industry, social security fund holdings are mainly concentrated in the financial and insurance, pharmaceutical and biological, chemical, and electronic industries.
Judging from the operating data of the investee company’s 2019 annual report, the profit scale of the financial sectors such as Industrial and Commercial Bank of China, Construction Bank, and Agricultural Bank is among the top; in terms of the year-on-year growth rate of net profit, Wanji Technology, Ginza and China National Offshore Oil Services Corporation has the largest growth rate, which is 13997%, 5216%and 2751%respectively. A total of 587 stocks achieved a year-on-year increase in net profit, accounting for more than 70%of all social security fund participating companies.
Analysis of industry insiders, the accelerated entry of social security funds into the market will play a value discovery function. Dong Dengxin, director of the Institute of Financial Securities of Wuhan University of Science and Technology, stated publicly, “Social security funds focus on long-term investment and value investment in terms of investment style, so investment performance is reflected in long-term performance. Looking at the performance in recent years, overall, the investment income of social security funds The rate volatility is narrowing, and the degree of dispersion is converging. This also shows that the investment level of social security funds is continuously improving, and the level of investment management is constantly maturing.”
Dong Dengxin analyzed that social security funds are long-term funds and are also A shares. The most scarce type of funds in the market. The A-share market is”not bad for money,” but it lacks long-term institutional investors. In this regard, the social security fund has played a demonstrative and leading role. The scale of long-term funds represented by the social security fund will become larger and larger, which is essential for the A-share market to change the pattern of”short and long bears”.
Daily Economic News