A Study On The Impact Of Investment Returns Of Corporate Annuities From The Perspective Of Trustee

With the accelerated ageing of the global population,the social security for the elderly has become increasingly prominent.In order to meet this global challenge,the World Bank proposed a three-pillar pension system in 1994.which aims to build a diversified and multi-level system to safeguard the senior citizens’ life by allowing governments play the leading role,and enterprises provide welfare and individuals responsible for their own pension.China started to become ageing in 2000.Over 20 years of development,the total population was 1.412 billion by the end of 2020,with 191 million people aged 65 and above,and an old-age dependency ratio of 19.7%.To tackle this challenge,China has established the three pillars of pension scheme with reference to international practice:basic pension insurance for urban workers and rural residents,corporate and occupational pensions,and individual commercial pension insurance.However,the first pillar does not have enough funds for large clients;the second pillar do not have wide coverage;the third pillar do not innovate product,provide policy support and the taxation is weak."The 14th Five-Year Plan and the Long-Range Objectives Through the Year 2035 tried to develop a multi-level and multi-pillar pension system and expand the coverage rate of corporate annuities.From the perspective of trustee,this paper collects public market data and applies STATA software to analyze the return of corporate annuity pooled plans by exploring the influential factors including random and fixed effects models,the number of enterprises and employees,total assets,portfolios and policy.This paper also analyzes the return influenced by investment manager type,portfolio,total asset and policy by using the models of investment manager,individual random and mixed effects.Finally,trustee views are given based on empirical analysis:the first is to understand the risk appetite and select suitable trustees.To focus on various factors that have a significant impact on investment returns when evaluate the comprehensive plan.To pay attention to plans with larger assets and portfolios but small employees when evaluating the fixed income portfolios.To focus on larger annuity plans when it comes to equity-bearing portfolios portfolio company annuity with fixed income portfolios.The Second is to diversify risk and liberalize investment portfolio selection.To arrange both fixed income and equity portfolios in annuity plans based on market openness and returns of equity-bearing annuity.The third is to extend the assessment period and focus on long-term returns of funds.To provide advises based on the current annuity and empirical analysis:firstly,supportive laws and taxation policies for corporate annuity is important;secondly,to prudently liberalise investment policies and strengthen asset allocation;thirdly,to strengthen annuity information disclosure and enhance social participation.