Ping An Annuity’s Investment Management

Advantages of Ping An annuity’s investment management

  • Robust risk management system
    Risk Budget Process Policy implementation Post-event review and report Regular audit
    ALM Management
    Investment Strategy
    Risk budget
    Investment budget    		 Investment approval process
    Centralized Trading process
    Clearing & Delivery process
    Investment management process
    Real-time risk assessment
    Response to critical events    		 Rules on Compliance and inspection
    Rules on risk report
    Rules on risk control and audit
    Rules on asset protection
    Rules on risk assessment    		 Risk report
    Performance analysis
    Distribution and proportion    		 Internal analysis
    External audit
    Audit management
    Back
  • Outstanding long-term track record of pension fund investment
    Advantages of Ping An annuity’s investment management

    As at end-December, Ping An Annuity Co., Ltd. has total trusted assets of about RMB21.5bn and assets under management (AUM) of RMB13bn. It has over 2,000 clients with contracts signed or contracts not signed but bids won. About 1.8mn people have joined the related pension plans. The contracted enterprises of Ping An Pension are mainly in these industries: electricity, electric, tobacco, communications and transportation, chemical industry, non-ferrous metal, machinery, culture, etc. In January 2007, Shenzhen Corporate Pension Center started the transfer of RMB2.365bn of funds (and 878 clients) to Ping An Annuity Co., Ltd. for administration. Now, this transfer of inventory pensions (of the 2nd largest amount in China) is going smoothly. Government departments and clients are all satisfied with the professional service provided by Ping An Annuity.

    Demonstrations of investment performance of various investment products offered by Ping An:

    Fixed-income products
    • Fixed-income products and money market instruments will be the major investment targets of corporate pensions for a period in the future. In the domestic bond market and deposit market, Ping An has significant influences and outstanding bond investment performance.
    • Ping An, as one of the first T-bond underwriting syndicate members and the first CDB (China Development Bank) financial bond underwriting syndicate members, has won the titles of “Excellent Settlement Member by China Government Securities Depository Trust & Clearing Co., Ltd.” and “Excellent Trading Member by National Inter-bank Funding Center” for many consecutive years.
    • Ping An is a major player in the negotiated deposit market, and plays an important role in the process of interest rate marketization.
    • Ping An’s bond investment performance has ranked No.1 among peers for seven consecutive years.
    • Ping An is the first insurer in China allowed to conduct offshore investment, and has already built its capability for investing in offshore fixed-income products.
    Equity products

    Ping An has a large professional equity research team. Based on their forward-looking and in-depth research, Ping An has become the largest shareholder of circulating stocks of many key A-share listed companies, e.g. China Life, Shanghai Pudong Development Bank, Beijing Shougang, Daqin Railway, Shanghai International Airport, etc. Meanwhile, Ping An is among the top ten shareholders of circulating stocks of many listed companies.

    Money market instruments

    Money market instruments mainly include current deposits, short-term bond repo, central bank papers, money market funds, etc.

    Anti-risk

    Unlike retail investors, Ping An, as an institutional investor, always puts risk control at the first place, no matter if it is bear market or bull market. Our target is maximum risk-adjusted return, rather than absolute return in short-term. It is proved that our investment strategy demonstrates outstanding stability and profitability.

    Back
  • Diversified corporate pension investment products
    • Growth Pension Fund
    • Balanced Pension Fund
    • Defensive Pension Fund
    • Dynamic Pension Fund
    • Conservative Pension Fund
    • Target market

      The portfolio is targeting at the investors with middle-level risk tolerance and provides long-term stable value-add via dynamic asset allocation.

    • Investment target

      The target of the portfolio is to get long-term stable value-add while controlling risk through diversified investment and dynamic asset allocation. The portfolio will cover some equity assets so that investors can enjoy a relatively high return.

    • Investment scope
      Type of asset Investment scope
      Equity Stock, stock funds, UL insurance products focusing on equity market, etc
      Fixed-income T-bond, financial and corporate bonds with investable rating or above, convertible bond, time bank deposit (including negotiated deposit), bond funds, UL insurance products focusing on fixed-income market, etc.
      Money market vehicles Current deposit, short-term bond repo, central bank bills, money market funds, UL insurance products focusing on money market, etc.
    • Performance benchmark

      Performance benchmark=CITIC S&P300*15%+CITIC All-bond Index*35%+Current deposit rate in commercial banks within the period*50%.

      CITIC S&P 300 Index is a benchmark index describing China A-share market trend jointly launched by CITIC Securities Co., Ltd and Standard & Poor’s. The index consists of Top 300 companies in terms of market capitalization and liquidity among all listed companies in China A-share market.

      CITIC All-bond Index is a comprehensive and authoritative bond index reflecting Chinese bond market. It consists of all the major varieties of bonds publicly traded in Shenzhen and Shanghai Stock Exchanges and inter-bank bond market.

      Current deposit interest rate in commercial banks within the period: take the current deposit interest rate announced by the People’s Bank of China as the benchmark.

      Suggestions from experts:
      In a stable and sustainable economy where the investors are positive about the stock market, this portfolio can provide a relatively high investment return to the clients while controlling risk.

      Kind reminder:
      The risk is in director proportion to the return. Ping An pension experts kindly suggest you choose the pension funds based on your own risk tolerance.

    Back