Comparative Study On Investment Income Of Enterprise Annuity In China

Since the reform on China’s endowment insurance system, pension fund investment rapidly entered into the visions of the public. With social aging problem became increasingly prominent and pension gap gradually expanded, people paid more attention to pension fund investment earnings. As the “second backbone” of China’s pension security, the investment earnings of China’s enterprise annuities still had great gap with that of world developed countries, not achieving general social expectations. The essential reason is that enterprise annuity earnings have close relations with multiple factors including market environment, investment style and investment level. Meanwhile, the development of China’s enterprise annuities just experienced 10 years, which is still at initial development period. In addition, the perfection extent of management system and professional level of investment managers have great gap with that of developed countries. Thus what on earth is the principal factor influencing enterprise annuities’ earnings shall be one issue deserving discussion.This paper firstly pointed out the phenomenon of low investment earnings rate of China’s enterprise annuities. Starting from the comparison with enterprise annuity conditions of that of other countries in the world, it analyzed the correlation between investment earnings rate of China’s enterprise annuities and market environment, and further demonstrated that the principal factor influencing its investment earnings is not market environment, while others. Later on, by virtue of large amounts of comparative analysis, it judged that the investment style of China’s enterprise annuities is conservative and elaborated its special historical reasons. In addition, it compared CNPC’s enterprise annuities and domestic similar bond funds by sampling method, evaluated the investment performance level of CNPC’s enterprise annuities relative to that of bond funds, thereby obtaining conclusion that the investment earnings stability of China’s enterprise annuities is strong, but difficult to achieve excess earnings. The final part of this paper explained the cause from investment decision-making process, investment strategies and investment instruments; and proposed suggestions on the development of China’s enterprise annuities.