The problem of asset allocation and investment is the key point for success operation of China’s new-born occupational pension plan reform. The research advances that the pension plan should consider the cash-flow characteristics of the sponsor company and choose the negatively correlated stocks with the sponsored enterprise to construct the portfolio. So it can hedge risk. The life-cycle investment strategy is appropriate for pensions’ asset allocation. Also the pension fund should choose value stock portfolio and revolve termly.
The research suggests that the responsibilities of China’s pension council should be increased. The council should be restructured and the outside council members should be imported.
The investment managers are responsible for investment of enterprise pension funds. And fee schedule is the most important factor which affects the managers. This research studies fee schedule and suggests that option fee schedule with some restrictions is a wise choice. By utility analysis, we find that the option fee schedule makes the managers’ investment goal consist with pension fund benefits’, and moreover, leads the managers to maximize the value as well as control the risks of enterprise pension funds.
The research gives out a forward design of China’s corporate pension benefit guarantee mechanism. The design is including the object, capital source, the compensation and also the internal governance of guarantee system.