National Council for Social Security Fund (NCSSF), China’s pillar 1 pension management body, has recently announced its procedure to hire new overseas investment managers for 3 equity strategies: global responsible investment active equities, Japanese active equities and global technology active equities. This is the first time that NCSSF specifically searches for a responsible investment strategy.

NCSSF, one of the most important Chinese global allocators, started to recruit overseas managers in 2006 and have so far hired 4 batches of global managers in 2006, 2009, 2012 and 2015 respectively. Please refer to How Do International Asset Managers Benefit From Chinese Pension Growth? for more information about NCSSF and its overseas allocation history.

Announcement of the National Council for Social Security Fund on the Selection and Appointment of Overseas Investment Managers

In accordance with the “Interim Regulations on the Management of Overseas Investment by the National Social Security Fund” and the needs of the investment management of the Social Security Fund, the National Council of Social Security Fund (hereinafter referred to as the Social Security Fund) plans to select the 2020 National Social Security Fund overseas investment manager. The announcement is as follows:

1. Applicant Minimum Criteria

The applicant institution should meet the following requirements:

  1. Good financial stability and credit standing, meet the risk control requirement by rules and regulations and regulatory bodies in the country and region it is located;
  2. As of June 30, 2020, have operated asset management business for more than 6 years, and managed assets of no less than USD 5 billion (or equivalent in other currency);
  3. The employees meet the relevant qualification requirements of the country or region where they are located;
  4. Have a sound governance structure and internal control system, and a good business behaviour record;
  5. As of June 30, 2020, have not received major penalties from the supervisory authority of the country or region in the past three years;
  6. For those established and registered outside of China, the country or region where they are located has a sound legal and financial regulatory system, the regulatory body and the China Securities Regulatory Commission have signed a memorandum of understanding on regulatory cooperation and maintain an effective regulatory cooperation relationship.

2. Type of strategies to be commissioned

  1. Global Responsible Investment Active Equities;
  2. Japanese active equities;
  3. Global technology active equities

3. Application process

Institutions interested in participating in the selection, please send an email to the contact email of the Social Security Foundation listed in this announcement, stating the type of strategies they intend to apply for. After receiving the application, our contact will provide email confirmation within two working days and send the relevant application materials. Those who have not received the confirmation and application materials by then must contact us through the contact email. The deadline for submission of application materials is September 11, 2020.

Each applicant can apply for up to three strategies with one application for each strategy.

4. Contact Information of the Social Security Foundation

Contact email address: global_equity@ssf.gov.cn

National Council of Social Security Fund
August 21, 2020