(1) Pension insurance funds’ investment in bonds From the moment pension funds were born, bonds have been their preferred investment tool.

The long-term liabilities of pension funds and the requirement for investment safety determine that long-term bonds must be part of the investment portfolio.

Since the main expenditures of pension funds will be for a long time in the future, such long-term liabilities determine that pension funds need to use long-term bonds as their main investment objects.

In this sense, pension funds are ideal “long-term investors”.

(2) Pension insurance funds invest in stocks. Although it is theoretically possible to construct the best bond investment group for pension funds, in actual operation, it is very difficult to find a perfect match.

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This is probably one of the reasons why 90% of pension funds in the United States do not invest 100% of their funds in bonds. Nowadays, stocks occupy a small share in the investment portfolios of many pension funds.

Its appeal mainly comes from the high yield of investing in stocks. Since the liabilities of pension funds are extremely long-term, the main expenditures occur for a long time in the future, which makes it more suitable for investment in long-term assets (including long-term bonds).

and stocks), in this case, the risk of stocks relative to long-term bonds naturally becomes an issue that should be taken seriously.

(3) In addition to investing in domestic financial assets, other investment methods of pension insurance funds include:

Overseas financial assets are also very attractive.

In addition to financial assets, tangible assets (such as real estate, etc.) should also become the investment objects of pension funds.