has gone through 18 years since the National Social Security Fund was established in 2000. By 2018, it has gone through 18 years. During this period, no matter how turbulent China's capital market was, the social security fund could always remain in an "invincible position." However, what the outside world does not know is how much revenue the National Social Security Fund has earned in total for society's life-saving money during these 18 years. Wang Zhongmin, the former vice chairman of the Social Security Fund who retired in December last year, appeared at the Peking University Guangyun Wealth Forum hosted by the Peking University Finance Alumni Association and hosted by Guangyun Wealth on September 2. He disclosed the investment income of the Social Security Fund over the years to the outside world. and operational details.
"The National Social Security Fund initially received an initial operating capital of 20 billion yuan from the central government. By 2018, its total assets exceeded 2.2 trillion yuan, and its investment rollover income reached 1 trillion yuan in 18 years. In the capital market, especially the investment proportion of the equity market And the return on investment reaches an annualized income of 8.4%, which is very valuable and meaningful. is one of the most valuable. Typical years are 2007 and 2007, when the social security fund's investment return in the secondary market reached 450%, and the total asset return reached 47%. However, such opportunities are obviously not many. For social security funds, they can achieve continuous gains. Relatively impressive returns still come from direct equity investment, using the operation method of fund of funds to find stable and suitable investment channels for social security funds,” Wang Zhongmin said in an interview that day.
Beautiful annual report and natural tax-free body
As the former "second boss" of the National Social Security Fund, Wang Zhongmin served as the vice chairman for 13 years. Before retiring, he also submitted a beautiful annual report to the society's life-saving funds. , and also brought a perfect end to his resignation.
On July 31 this year, the "National Social Security Fund Council Social Security Fund Annual Report (2017)" was officially released. According to data, the investment return rate of the National Social Security Fund in 2017 reached 9.68%, and the equity investment income was 1846.14 billion, with an average annual investment return rate of 8.44%. As of the end of 2017, the total assets of social security funds reached 2.22 trillion yuan. Among them, the domestic investment assets of social security funds accounted for 92%, and the overseas investment assets accounted for 7.53%.
In Wang Zhongmin’s view, the reason why social security funds can achieve returns that far exceed market returns over a long period of time is closely related to the fact that social security funds are natural tax-free entities.
In fact, Wang Zhongmin was also a witness to the share reform of China's financial institutions. He also led the social security fund to participate in the share reform of state-owned financial institutions. Especially during the share reform of large state-owned banks and financial institutions, the social security fund invested a large amount of direct equity. And it was quickly securitized and achieved a 4-5 times return on investment.
When interviewed, Wang Zhongmin also revealed that the most beautiful market-oriented equity investment he has made is the strategic investment in Ant Financial . This newspaper learned that in July 2015, the Social Security Fund strategically invested 5% in Ant Financial, becoming the largest external shareholder introduced by Ant Financial. This was also the first time that the social security fund directly invested in an innovative private enterprise. At that time, Ant Financial was valued at US$35 billion to US$40 billion. Today, Ant Financial’s valuation has reached US$150 billion.
"Three years ago, the social security fund spent more than 7 billion to invest in Ant Financial. Based on the valuation at the time, Ant Financial gave the National Social Security Fund a certain discount. Today, the strategic floating profit is almost 40 billion yuan. This is social security The fund has the highest single return among alternative investments," Wang Zhongmin said.
The mother of funds model has become the "killer weapon" for making money
In an interview, Wang Zhongmin said frankly that social security funds, whether for private equity investment or equity investment in the secondary market, have greatly defeated today's fixed income returns and returns on cash management. , that is also because of the advantages of the Social Security Fund as the leading asset manager.
“The social security fund is actually a fund of funds. It uses the form of fund of funds to not only solve the problem of insufficient incentives, but also achieves the development of symbiosis, mutual benefit and mutual growth for all parties involved in the same ecological system.If a huge social asset or social wealth is to grow or develop, even if you seize the opportunities of financial marketization, capitalization, and securitization through direct investment, you may still make mistakes, and when the scale is too large , one mistake can lead to subversion. "Wang Zhongmin also said.
However, in Wang Zhongmin's eyes, the social security fund has done very well, but it still has not done better.
"In overseas markets, there are Apple with a market value of nearly 1 trillion US dollars, and Amazon with a market value of 900 billion US dollars. ; China's , Tencent , and Alibaba are valued at around US$400 billion. These market leaders have contributed countless things such as social platforms, wearable products, and e-commerce to contemporary mankind. In China, Tencent’s initial investors are overseas South African funds; among the two shareholders of Alibaba are Japan’s Softbank Son Masayoshi , but the justice of the capital has been taken away by them. The initial investors of these giants All come from venture capitalists, and they are the ones who get the real return on capital. Even if we look back like this, we will find that at that time, the natural person LP in RMB was rich and mature enough. If the social security fund could be deployed in advance, today’s returns would not be those of the two overseas investors. We would definitely bring benefits to the social security fund. Greater capital gains. "Wang Zhongmin said frankly.
As for the investment value of the previously popular "unicorn" companies, Wang Zhongmin pointed out in an interview that currently half of the world's unicorns are 60% in China, but for social security funds, it is necessary to examine unicorn back Whether the latter private equity and venture capital are based on the RMB investment logic, if there are natural person LPs among them, these companies will definitely spawn good companies facing the real economy. Social security funds have already seen the value of this and its contribution to society. basic meaning .
Wang Zhongmin also optimistically pointed out in the end that the snowballing logic of compound interest, the logic of tax cuts, and the operation of fund-of-funds will allow social security funds to have a powerful wealth accumulation effect. This wealth accumulation effect will make people more confident about their future retirement and future. Social security is more confident. (This article is from China Times, the content is slightly abridged)
What do you think of the performance of the social security fund?
