In 2020, the investment return rate of the social security fund will reach 15.84%——

Why is the social security fund's "performance" so good?

  The recently released "National Council of Social Security Fund Social Security Fund Annual Report (2020)" shows that in 2020, the social security fund investment income will be 378.66 billion yuan, and the investment return rate will reach 15.84%; the social security fund's annual average investment income since its establishment The rate was 8.51%, and the accumulated investment income was 1,625.06 billion yuan.

  In 2020, it will set the highest rate of return in the past ten years, outperform the Shanghai stock market, and the rate of return has been higher than double digits for two consecutive years...Why is the "performance" of the social security fund so good?

What are the "investment secrets" of the operating team behind it?

  Where did the nearly 3 trillion yuan come from?

  ——Including the National Social Security Fund, some personal account funds and local entrusted funds, as of the end of 2020, the total assets reached 2.922.661 billion yuan

  How big is the "plate" of the National Social Security Fund?

  It is understood that the National Social Security Fund was established in 2000 as a national social security reserve fund and an important part of the multi-level social security system. The National Council of Social Security Fund is its investment and operation agency.

Zhao Fuchang, a researcher at the Research Center for Finance and National Governance of the Chinese Academy of Fiscal Sciences, said in an interview with our reporter that the purpose of the establishment of the National Social Security Fund is to "prepare for a rainy day."

  At present, the funds managed by the National Council of Social Security Funds come from the following sources: One is the National Social Security Fund, which consists of central fiscal budget appropriations, state-owned capital transfers, fund investment income and funds raised by other methods approved by the State Council.

The second is to confirm the central subsidy funds for personal accounts (personal account funds), which are the central subsidies for basic pension insurance personal accounts entrusted and managed by the People's Government of relevant provinces (autonomous regions and municipalities) and their investment income.

In addition, it also includes the basic endowment insurance funds of some enterprise employees (local entrusted funds), basic endowment insurance funds, and part of the transferred state-owned capital.

  The content disclosed in the 2020 social security fund annual report is the investment operation and financial situation of the national social security fund, personal account fund and local entrusted funds, collectively referred to as "social security fund" in the report.

The report shows that as of the end of 2020, the total assets of the social security fund reached 2,922.661 billion yuan.

  Where did this money go?

The report shows that the investment scope of the social security fund includes: approved domestic investment scope includes bank deposits, bonds, trust loans, asset securitization products, stocks, securities investment funds, equity investment, equity investment funds, etc.; approved overseas investment scope Including money market products such as bank deposits, bank bills, large negotiable certificates of deposit, bonds, stocks, securities investment funds, and derivative financial instruments such as swaps and forwards for risk management.

  What does "performance" depend on?

  ——Adhere to the concepts of long-term investment, value investment and responsible investment, and have formed a relatively complete asset allocation system and a relatively sound risk management system

  In 2020, the investment rate of return of the social security fund will reach 15.84%, which is about 2% higher than the increase of the Shanghai Stock Exchange index in that year. It is also the period with the highest rate of return on fund equity investment in each reporting period after 2009.

This performance has attracted widespread attention not only domestically, but also overseas.

How is this rate of return achieved?

  It is understood that the National Social Security Fund Council adopts a combination of direct investment and entrusted investment to carry out investment operations.

The former is directly managed and operated by the National Council of Social Security Fund, which mainly includes bank deposits, trust loans, equity investment, equity investment funds, transfer of state-owned shares and indexed stock investment, etc.; the latter is managed by investment managers entrusted by the National Council of Social Security Funds The operation mainly includes domestic and overseas stocks, bonds, securities investment funds, and foreign derivative financial instruments such as swaps and forwards used for risk management.

  The reporter combed and found that since the National Council of Social Security Fund disclosed the proportion of direct investment and entrusted investment assets at the end of the reporting period in the annual report in 2003, the proportion of entrusted investment assets in the total assets of social security funds has been on the rise, from less than 1 in 2003. /4 rose to nearly two-thirds of 2020, with total assets exceeding 1.900 billion yuan.

  Industry insiders pointed out that the social security fund can achieve better "performance" related to its investment philosophy, asset allocation system and risk management system.

  In terms of investment philosophy, the National Council of 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 the safety of the fund and achieve value preservation and appreciation.

  In terms of asset allocation, the National Council of Social Security Fund has formed a relatively complete asset allocation system in investment operations.

In this system, the strategic asset allocation plan aims to determine the medium and long-term target allocation ratios and ratio ranges of various assets; the annual tactical asset allocation plan determines the annual allocation of various assets within the range of the various asset ratios specified in the strategic asset allocation plan. Proportion: The quarterly asset allocation execution plan determines the specific quarterly execution plan and makes dynamic adjustments through the analysis of the situation and the review of the annual asset allocation plan.

  In terms of risk management, centering on the overall investment objectives, in view of the various investment risks that may arise in each link of management and operation, the risk identification, measurement, evaluation, monitoring and control response are carried out through special risk management methods and methods, covering all investment management activities. It has established a risk management responsibility system for business departments, risk management functional departments, risk management committees, and investment decision-making committees to form a relatively sound risk management system.

  Zhao Fuchang believes that a prudent investment philosophy is an important factor for the social security fund to maintain a relatively high level of return on investment.

For a long time, the National Council of Social Security Fund has always insisted on maintaining and increasing the value of the fund under the premise of ensuring the safety of the fund.

At the same time, compared with most institutional investors, the National Council of Social Security Fund has significant advantages in investment operations, risk management, and talent training.

"In general, institutional investors will generally perform well in 2020, but in terms of the huge size of social security funds, last year's investment yield was very impressive."

  Continue to grow bigger and stronger

  ——Focusing on the implementation of the national strategy of actively responding to the aging of the population, and better fulfilling the main responsibility of fund security and value preservation and appreciation

  Judging from the recent annual reports, the amount of funds allocated to the National Social Security Fund has been declining year by year.

  From 2015 to 2019, the fiscal funds allocated to the National Social Security Fund were 70.640 billion yuan, 70.60 billion yuan, 59.783 billion yuan, 57.377 billion yuan, and 46.493 billion yuan. In 2020, this number will be further reduced to 31.381 billion yuan.

  Zhao Fuchang analyzed that the changes in the scale of fiscal allocations to the National Social Security Fund depend on the fiscal revenue and expenditure of the year and the actual needs of the reserve fund.

At the same time, it should also be noted that although the scale of funds allocated to the National Social Security Fund from the government is decreasing, overall, in recent years, financial subsidies for pension, medical, unemployment and other social insurance have increased year by year, and the financial support for the social security system has not been strong. Change.

  With the intensification of aging, China's pension insurance is facing greater financial pressure.

Faced with the possible pension gap, how to take precautions?

Zhao Fuchang analyzed that in terms of "cutting expenditures", the state has clearly implemented measures such as gradually delaying the statutory retirement age and unifying the social security payment base and rate will play an important role.

In terms of "open source", in addition to adjusting the birth policy and developing the second and third pillars of pension funds, the expansion and strengthening of the National Social Security Fund is an important aspect.

  During the "14th Five-Year Plan" period, how to continue to expand and strengthen the National Social Security Fund?

  Experts suggest that the reserve function of the national social security fund should be highlighted, and the strategic reserve fund for social security should be optimized and strengthened.

Zhao Fuchang introduced that due to historical reasons, some provinces are currently under heavy pressure on pension payments, and need to upgrade the level of overall planning and strengthen mutual aid.

In the future, the National Social Security Fund's "underlying" function as a reserve fund should be consolidated.

At the same time, it is necessary to improve a standardized and effective state-owned capital transfer, undertaking and management mechanism to provide a guarantee for promoting the establishment of a fairer and more sustainable old-age insurance system.

  "Today, we should focus on improving the multi-level social security system and insist on the overall effort: "open source" and "cut expenditure" within the system, walk on two legs, and form the outside of the system by undertaking state-owned capital transfers, lottery public welfare funds and other fiscal transfers. It is a useful supplement to expand and strengthen the National Social Security Fund, and play a positive role in coping with the arrival of the peak of population aging." Zhao Fuchang said.

  Wang Wenzheng

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