China’s SSF posts return of 6.2% for 2013

02 July 2014   Category: News, Asia, China, Global   By Asia Asset Management

China’s supplementary pension fund, the Social Security Fund (SSF), managed to beat the country’s 2.6% inflation rate by delivering an investment return of 6.2% for 2013, while increasing its total AUM to 1.24 trillion RMB (US$198.6 billion) as of the end of December, according to a report from China Securities Journal.

The National Council for Social Security Fund (NCSSF), the SSF’s supervisory body, remarked that the fund’s accumulated revenues amounted to 418.7 billion RMB since its inception in October 2000. This equalled an annualised return of 8.13%, outperforming the average inflation rate of 2.46% during the period.

Last year, 46.05% of SSF’s total AUM, or 571.7 billion RMB, was outsourced to external managers, while the remaining 53.95% of assets were managed internally. 

Meanwhile, the SSF realised revenues of 205.57 billion RMB from its equities investments, equivalent to 6.73%.

The return was partly attributed to the fund’s long-term and fundamental investment strategies, in which it takes stakes in more than 300 frequently traded A-share companies. Half of those stocks have been held for more than three consecutive quarters, including equities from outperforming sectors including medical and pharmaceuticals.