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NSSF's 9-year investment performance beats inflation
2010-03-17 08:30:44Source:People′s Daily OnlineAuthor:
The National Social Security Fund (NSSF) has recorded 244.8 billion yuan in cumulative returns on equity investments since its foundation 9 years ago, with an average annual return rate of 9.8 percent, 7.7 percentage points higher than the average annual inflation rate during the same period, according to the third session of the third National Council for Social Security Fund.
The NSSF made 84.9 billion yuan in returns on investments in 2009, with a 16.1 percent rate of return. The size of the assets held by the NSSF stood at 776.5 billion yuan at the end of 2009, an increase of 38 percent from the previous year.
In light of the complicated market situation owing to the international financial crisis, the NSSF prioritized the safety of funds. The NSSF lowered the percentage of its investments in fixed-income products to total fund assets from 56 percent at the beginning of 2009 to 41 percent at the end of 2009, increased the percentage of domestic and overseas stock investments from 23 percent to 32 percent, raised the percentage of its industrial investments from around 15 percent to 21 percent, and decreased the percentage of cash and other investments from 7 percent to 6 percent.
With the approval from the state council, relevant departments under the state council announced June 2009 the transfer of 10 percent state-owned shares in listed companies to the NSSF. The 59.8 billion yuan worth of shares, which were held by the state prior to the announcement of the transfer, were already transferred to the NSSF by the end of 2009, marking the basic completion of the transfer of state-owned shares from central state-owned enterprises. The transfer of nearly 10 billion yuan worth of state-owned shares in local listed companies will be implemented in the first quarter of 2010.
The NSSF made 84.9 billion yuan in returns on investments in 2009, with a 16.1 percent rate of return. The size of the assets held by the NSSF stood at 776.5 billion yuan at the end of 2009, an increase of 38 percent from the previous year.
In light of the complicated market situation owing to the international financial crisis, the NSSF prioritized the safety of funds. The NSSF lowered the percentage of its investments in fixed-income products to total fund assets from 56 percent at the beginning of 2009 to 41 percent at the end of 2009, increased the percentage of domestic and overseas stock investments from 23 percent to 32 percent, raised the percentage of its industrial investments from around 15 percent to 21 percent, and decreased the percentage of cash and other investments from 7 percent to 6 percent.
With the approval from the state council, relevant departments under the state council announced June 2009 the transfer of 10 percent state-owned shares in listed companies to the NSSF. The 59.8 billion yuan worth of shares, which were held by the state prior to the announcement of the transfer, were already transferred to the NSSF by the end of 2009, marking the basic completion of the transfer of state-owned shares from central state-owned enterprises. The transfer of nearly 10 billion yuan worth of state-owned shares in local listed companies will be implemented in the first quarter of 2010.
