A Research On The Duty Of Prudent Investment Of The Manager Of Pension Fund

Based on the context of the social security system for senior citizens, this article revolves around the duty of care and the duty of loyalty included in the duty of prudent person imposed on the manager of the pension fund, deals with issues and the legal significance of the application of rules in the management of pension fund investments.This article extensively adopts approaches of abstract generalization,jurisprudential exploration, comparative and economic analysis,which follows the structure of the introduction,main body and conclusion and falls into eight parts.To smoothly develop the subject of the dissertation in a broad context, the introduction briefly covers the aspects of the origin,development and theoretical basis of the social security system for senior citizens,that is,the idea of welfare state.Chapter one of this article introduces the concept of the pension fund, the significance of the pension fund investment and its existing state in China.What is more,this section centrally treats the characteristics of pension funds and its convergence with trust,and attempts to demonstrates that the inherent characteristics of trust is conducive to the development of pension fund.In Chapter two,the article develops analyses from a wider perspective. Firstly,the manager of the pension fund is the person that has the fiduciary duty,and the duty of the prudent person falls into the fiduciary duty in equity taw,which demonstrates the distributive justice.Secondly,the section suggests that the duty of the prudent person serves as the essence of the fiduciary duty,sets up the highest standard of acts,and hence assuming the significance in moral sense,functioning as the legal standard of the duty of care and having advantageous institutional function.Last,the section deals with the evolutionary process of the duty of the prudent person as the legal standard of pension fund investment.The next chapter examines the duty of care in the duty of prudent person,and primarily involves two parts:first,based on the development of the financial theory,this section depicts the evolutionary process of the prudent investor rule and demonstrates the close relationship between the prudent investor rule and the financial investment theory;second,this chapter focuses on legal issues of the duty of the prudent person from the aspects of objectivity,procedural reasoning and risk management.Chapter four examines the standard of the duty of loyalty of the prudent person,and then discusses the legal requirements that the prudent person rule imposed for the manager of the pension fund from the aspects of altruism,exclusiveness,economy and fairness.In Chapter five,the article closely explores the legal requirements for the duty of prudent person in the process of diversified investments, authorization management and the execution of the voting right of shares.Chapter six examines the possibility of the transplant of the duty of prudent person and the insights it may shed on the management of pension fund investment in China.The last section concludes,firstly,that the duty of prudent person combines the prudent and the fiduciary aspects,which depicts the figure of a lawman making every endeavor to act for the interest of others and sets up the highest standard in the legal field.Secondly,the section concludes that the duty of prudent person demonstrates the requirements of the values of efficiency and safety.In the meantime,the duty of prudent person may achieves the goals of maintaining and increasing the value of the pension fund,serving as the legal foundation of the regulating system in the management of the pension fund investment.Thirdly,the last section concludes that the evolutionary process of the duty of prudent person is accompanied with that of the modern financial theory.The content of the duty of prudent person sufficiently absorbs and expresses the latest research achievements of the financial theory,indicating the potential of the economic reasoning embedded in legal rules.The analysis and exploration of the duty of prudence owned by the manager of the pension fund in the Anglo-American law system not only benefit the construction and improvement of the legal institution of the pension fund investment in China,but also perform the function of richening the idea of general private law and correctly understanding the social law theory.