CHINA - The National Social Security Fund (NSSF) aims to grow to US$200bn in assets under management (AuM) within the next five to ten years, said its chairman.
Xiang Huaicheng, speaking at the Credit Suisse Asian Investment Conference in Hong Kong, said the fund, which had AuM of $36.2bn at the end of 2006, was targeting an annual rate of return of about 5%.
Huaicheng reportedly stated that the aging of China’s population would peak in 2035, when around $400bn would be needed to stem the shortfall in pensions.
By the end of this month the NFSS will have around $1.6bn, or around 5% of its assets, invested overseas – short of the 20% of total assets the Chinese government has decreed acceptable.
Foreign global investment management companies have managed overseas investments for the authorities since November. To date ten fund managers, including State Street, UBS, and Invesco, have been awarded mandates.
Johnson Controls International has appointed XPS Pensions as investment and actuarial adviser for two of its schemes, following a competitive tender process.
Merseyside Pension Fund has allocated an initial £400m of assets to a smart sustainability fund managed by State Street Global Advisors (SSGA).
This week's top stories included exclusive coverage of The Pensions Regulator's plans to require schemes to use professional trustees.
Buck has launched a solution to help pension schemes equalise guaranteed minimum pensions (GMPs) in a cost effective way with minimum hassle.