China's pension fund reports lower investment return-Xinhua
BEIJING, June 28
BEIJING, June 28 (Reuters) - China's National Social Security Fund (NSSF) earned 68.6 billion yuan ($11 billion) from its investments in 2013, implying a 6.2 percent return on investment, the Xinhua news agency said on Saturday.
The rate of return was lower than 7 percent recorded in 2012, which was the highest in three years.
The NSSF, which manages the country's biggest pension fund, had total assets of 1.24 trillion yuan by the end of last year, with an average investment return of 8.1 percent since the inception of the fund in 2000, Xinhua said.
Despite the steady investment return, the fund was found to have incurred some losses due to mismanagement, the agency said.
It cited a recent reported by the National Audit Office as saying that losses incurred by "irregular management and unwise decisions" at the fund totaled 17.5 billion yuan between 2010 and 2013.
China is trying to shore up its pension system to cope with the huge demographic challenge of an already shrinking working-age population as it looks to turn the economy into one driven by consumption and services rather than investment and exports.
($1 = 6.2180 Chinese yuan) (Reporting by Judy Hua and Kevin Yao; Editing by Matt Driskill)