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.
PTL has appointed Karein Davie as a client director in its Birmingham office.
The level of interest rate hedging increased to £29.5bn of liabilities in the second quarter as pension funds continued to de-risk, according to BMO Global Asset Management's research.
UK inflation has risen for the first time since November to 2.5% in July, up from 2.4% in June, thanks to rising fuel costs and the price of computer games.
The number of DB pension scheme trustees targeting a buyout with an insurer has increased significantly in the past five years, latest research from Willis Towers Watson shows.