Beijing names pension fund managers
30 November 2006
The National Social Security Fund (NSSF) has appointed 10 international institutions to manage overseas investments of its state pension fund, the Financial Times reported. The NSSF declined to unveil the size of individual mandates, but analysts believe managers will receive a combined initial allocation of about US$1.5 billion. The NSSF, established in 2000 by the central government as a pension fund of last resort, holds about US$27 billion in assets, according to its records, the bulk raised through a government policy requiring state-owned enterprises to give the fund 10% of the proceeds from overseas listings. Some 40% of its total assets are invested in Industrial and Commercial Bank of China, Bank of China and Bank of Communications; given the sharp rise of these shares in recent months, the fund's total assets are estimated to have jumped to US$40 billion.