China’s SSF notches up 6.29% return for 2013

08 April 2014   Category: News, Asia, China, Global   By Asia Asset Management

China’s supplementary pension fund, the Social Security Fund (SSF), delivered revenues of 69.6 billion RMB (US$11.13 billion) for 2013, which translates to an annualised return of 6.29%, according to a report from Shanghai Securities Journal

The National Council for Social Security Fund (NCSSF) announced at the National Social Security Fund Council Conference on March 26 that the pension fund’s AUM had swelled from 837.7 billion RMB in 2011 to 1.19 trillion RMB by the of the end of 2013.

Despite the SSF suffering a marked decline in its returns in 2011, to a disappointing 0.84% – stemming from the fallout from the European debt crisis – the fund’s investment yield improved significantly in the following years to generate returns of 7.01% and 6.29% respectively, beating the country’s inflation rate of 2.6% during that time.

Separately, the NCSSF assumed responsibility for the investments of the 100 billion RMB Guangdong provincial government national pension fund in early 2012 for two years. Local media have reported that the provincial government has decided to extend this appointment for another three years following the fund delivering a stellar return of 6.73% for 2012 and satisfactory result thereafter.