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Public Funds Help Individual Pensions- Market Trends- Market Information Network

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Public Funds Help Individual Pensions- Market Trends- Market Information Network

Public Funds Help Individual Pensions

Market Information Network 2022-11-25 23:54:30 Source: Xinhuanet Comments:

On November 4, the Ministry of Human Resources and Social Security, the Ministry of Finance, the State Administration of Taxation, the China Banking and Insurance Regulatory Commission, and the China Securities Regulatory Commission jointly issued the “Personal Pension Implementation Measures”, which stipulates the personal pension participation process, fund account management, institution and product management, Specific regulations on information disclosure, supervision and management, etc. On the same day, the China Securities Regulatory Commission issued the “Interim Regulations on the Management of Publicly Offered Securities Investment Funds for Personal Pension Investment” (hereinafter referred to as the “Interim Regulations”), which clarifies the various market institutions and their business activities that participate in the personal pension investment public offering fund business. specification.

In the eyes of industry insiders, with the implementation of the personal pension investment public offering fund business, it is of positive significance for improving the multi-level and multi-pillar pension insurance system, meeting the growing pension investment needs of residents, and promoting the long-term stable development of the capital market. As a professional investment institution, public offering funds are also capable of contributing to the maintenance and appreciation of personal pension investment by giving full play to their own advantages in investment research.

Give full play to the professional advantages of public offering

Against the backdrop of my country’s aging population, it has become increasingly important to promote the standardized development of the third pillar and expand the scale of personal pensions, which is related to the vital interests of residents.

The release of the “Measures for the Implementation of Personal Pensions” marks that the personal pension system has entered a stage of substantive promotion. Deposits, wealth management products, commercial pension insurance, public funds and other financial products” also provide an institutional basis for personal pensions to invest in public funds.

As a supporting policy, the release of the “Interim Regulations” will guide public funds to better serve individual pensions, and also bring opportunities and space for the development of public funds.

Specifically, the “Interim Regulations” mainly stipulate the following three aspects: First, clarify the general principles and basic requirements for fund managers, institutions and other institutions to carry out personal pension investment public offering fund business, as well as the positioning of the fund industry platform responsibilities; Standards for fund products that personal pensions can invest in, and regulations on the investment management and risk management responsibilities of fund managers; third, clarify the business conditions for fund sales agencies, and provide information reminders, account services, publicity and promotion, and appropriate policies for fund sales agencies. Provisions shall be made on responsibilities such as sexual management and investor education.

The person in charge of China Europe Fund believes that the “Interim Regulations” comprehensively and clearly explained the principle of “investor’s interests first” in the personal pension investment fund business of the future fund industry, “asset security, operation stability, long-term investment, service “Convenience” and other basic requirements and the detailed rules for the development of various businesses are the general action plan for the fund industry to develop personal pension investment fund business in the future, which will help fund managers formulate investment strategies, product layout, portfolio operation management, and customer Provide high-quality funds and services for the personal pension business by following the corresponding norms in the service process.

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“In terms of pension management, public funds are wealth management institutions that meet the requirements of pension operations. They can give full play to the long-term fund attributes of pensions and the significant advantages of equity investment, and can also provide rich underlying products and tools for pension asset allocation. .” The relevant person in charge of China Asset Management told reporters.

Public funds have also accumulated rich management experience in pension investment. “As the main force of pension entrusted investment management, public fund companies are currently entrusted to manage various pension assets exceeding 4 trillion yuan, accounting for 50% of my country’s pension entrusted investment. Public funds have accumulated rich experience in pension investment. With its management experience and professional advantages, it can better play the role of equity investment in asset appreciation.” Yao Zeyu, chief analyst of non-bank financial industry and financial technology industry of CICC Research Department, introduced.

“Compared with other financial products that can be invested, public funds have many advantages in serving personal pension investment.” Li Zhan, chief economist of the Research Department of China Merchants Fund, believes that first, public funds participated in the pension and annuity business the earliest , Service practice more, with profound investment experience and insight. Second, the public offering fund has established a complete corporate governance and supervision mechanism, which can calmly deal with various risks. At the same time, the disclosure mechanism is more transparent, and it has both standardization and anti-risk capabilities; Products, in the future can meet the needs of individual customers for different products.

Steadily promote product expansion

On November 18, the China Securities Regulatory Commission released the first batch of personal pension investment fund products and sales agency directories, including 129 pension target funds and 37 fund sales agencies from 40 fund managers.

The China Securities Regulatory Commission previously pointed out that during the trial phase of the personal pension system, priority will be given to inclusion of qualified pension target funds, and subsequent experience will be summed up in a timely manner, and other funds suitable for the long-term investment needs of personal pensions will be gradually included in due course.

According to the requirements of the “Interim Regulations”, personal pensions can invest in public offering fund products including the following product types: First, the pension target with a scale of no less than 50 million yuan at the end of the last four quarters or a scale of no less than 200 million yuan at the end of the previous quarter fund. The second is stock funds, hybrid funds, bond funds, funds of funds, and other funds specified by the China Securities Regulatory Commission that have stable investment styles, clear investment strategies, and sound operation compliance, and are suitable for long-term investment in personal pension funds.

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Pension Target Fund is a fund product with medium and low volatility and equity assets. It aims at pursuing the long-term stable value-added of pension assets, encourages investors to hold them for a long time, adopts mature asset allocation strategies, and reasonably controls the risk of portfolio fluctuations. At this stage, the fund-of-funds (FOF) form is the main form. Since the launch of the first product in 2018, pension target funds have continued to expand steadily. According to Wind data, as of the end of June this year, there have been a total of 181 elderly care FOF products (calculated by combined share) in the whole market, with a total scale of 106.4 billion yuan.

Regarding the arrangement of giving priority to pension target funds, Li Zhan believes that my country’s public offering funds serving individual pensions are still in their infancy, and giving priority to eligible pension target funds is conducive to risk prevention and stable development. At the same time, the prudent determination of participating institutions and products is a manifestation of my country’s adherence to the general tone of “seeking progress while maintaining stability”. my country’s personal pension system is more social in nature, while public funds are relatively more market-oriented. The combination of the two needs to go through a period of “run-in” “. By prudently determining products and achieving the goal of maintaining and increasing value as much as possible, the concerns of participating investors can be reduced, otherwise it will affect the attractiveness of public funds for pension investment.

People in the industry generally believe that with the accumulation of experience and the maturity of conditions, it is expected that more other types of fund products will be included in the investment scope, and more public offering institutions will be given opportunities to participate, thereby providing richer opportunities for personal pension investment. Product choice.

“In terms of increasing the attractiveness of public funds to personal pension investment, we must continue to improve the product line of public funds.” Yao Zeyu suggested that in addition to the optimization of pension FOF products, public funds should also supplement various types of funds with clear styles and sustainable performance. Mature and high-quality products to meet the diverse needs of investors. At the same time, improve the sales service system of elderly care products. Public offering managers can cooperate with various institutions to expand their business radius and provide diversified investment advisory services to enhance investors’ sense of gain. In addition, investment education publicity should continue to be carried out to improve investors’ awareness of pension financial products.

The person in charge of Xueqiu Fund said that promoting the development of personal pensions will help meet the diverse pension needs of the public. As one of the first batch of personal pension fund sales agencies, Xueqiu Foundation actively leverages its own advantages to create unique pension services, and at the same time strengthens investor education so that users can understand and invest in personal pension funds Don’t worry.

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Promising to bring in long-term funding

Personal pensions implement a unique account system, closed management, and no early withdrawal… Many features will help guide individual investors to invest in long-term and value investments. Public funds are expected to usher in a long-term stable source of funds and promote the steady development of the capital market.

The “Interim Regulations” clearly encourage relevant institutions to make long-term investments. It is mentioned that fund managers and fund sales agencies should establish a long-term assessment mechanism, and the assessment period for personal pension investment fund business, product performance, and personnel performance should not be shorter than 5 years. Fund evaluation institutions shall adhere to the principle of long-term evaluation, the performance evaluation period shall not be shorter than 5 years, shall not use a single index for ranking or evaluation, and shall not conduct short-term income and scale rankings.

“Pension funds naturally have the attributes of a long investment period and low short-term liquidity requirements. They are suitable for long-term investment to obtain stable returns and relatively avoid short-term market fluctuation risks.” Yao Zeyu believes that, therefore, public offering managers should pay more attention to long-term investment and avoid For problems such as style drift and unstable performance caused by the pursuit of short-term scale and performance, the assessment period of fund managers should be extended to improve long-term investment capabilities and enhance product robustness.

According to the “Research Report on the Third Pillar of Pensions in China” issued by the Insurance Association of China in 2021, in the next 5 to 10 years, my country will have a pension gap of 8 trillion to 10 trillion yuan, and there is an urgent need for commercial pensions. Complementary financial products. “Personal pension investment public offering fund business will not only solve residents’ pension investment needs, but also bring a batch of stable incremental funds to the stock market, which will help improve the current situation in my country’s capital market where the proportion of individual investors is too high and the risk of volatility is high. , to promote the mutual development of the public offering fund industry and the capital market.” Li Zhan said.

Yao Zeyu believes that the personal pension investment public offering business is expected to bring long-term stable funds and become the “ballast stone” of the capital market. The personal pension investment public offering business will become a new long-term stable source of funds for the direct financing system of the capital market, which will help to smooth out market fluctuations, boost technological innovation and economic transformation, and will better serve the development of the real economy and at the same time facilitate the realization of The interaction mechanism between pensions and the benign development of the capital market. (Reporter Ma Chunyang)


Editor in charge: Liu Jiaming

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