A Study on the Risk-Return Evaluation of Corporate Annuity Portfolios in China

Abstract

Purpose - The purpose of this study is to evaluate the risk-return of China’s corporate annuity portfolio. In addition, it aims to enhance the quality of corporate annuity principals to strengthen corporate annuity control and risk-return evaluation by setting performance benchmarks to evaluate the investment portfolio mechanism of the investment manager. Design/Methodology/Approach - This study combines modern portfolio theory, financial regulation theory, and risk management theory to analyze the risk-return of corporate annuity portfolios of Qiming Venture Partners. The three analysis methods, VaR, Mean-Variance, and Sharp, were used to establish a risk-return analysis mechanism for the portfolio of corporate annuities and securities. Findings - The results of the study show that the risk-return prediction evaluation model is useful for the preinvestment and post-investment risk-return evaluation of annuity portfolios, and for companies to evaluate the effectiveness of investment manager portfolios. Research Implications - Corporate annuities need to be cautious in launching new products. They should prioritize the allocation of equity assets with more mature portfolios, and relax country-specific allocation limits. The number of investment portfolios should be increased, the types of asset allocation portfolios should be enriched, and the risk regulation system should be actively applied.