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.
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Universities Superannuation Scheme (USS) members should be responsible for most of the cost of increased contributions if the scheme's defined benefit (DB) section remains open to accrual, Pensions Buzz respondents say.