The National Social Security Fund, the mainland's largest pension fund, will invest more than 100 billion yuan this year, the highest annual amount since its establishment, as it races to cover the US$200 billion in pension requirements it expects by 2035, the fund's management council said. It said up to 30 per cent of the fund's holdings would be invested in overseas and domestic equities to help it meet a rate of return target of 'at least 3.5 per cent' this year. The biggest portion of the fund's total assets will still be put into domestic fixed-income products, although the fund will allow holdings in this segment to fluctuate at between 50 and 70 per cent of total assets, from 55 to 65 per cent last year. It expects fixed-income assets to return 3.5 per cent. 'The strategy is pretty good and safe. It is a very moderate return target for fixed-income investment,' said a corporate bond analyst at a Beijing-based insurer. In the statement, the council said it expected the fund to have a record amount to invest due to 'a majority of certificates of deposit maturing this year, plus new funds are being added to the pool'. As part of its share investment strategy, the fund would buy into initial public offerings and take opportunities to become strategic investors in mainland companies issuing H shares in Hong Kong, the statement said. A further 20 per cent of the total assets will go to private equity. Last year's rate of return was 9.34 per cent, boosted by the surging stock market as well as a spate of overseas listings, in each of which the fund gets a 10 per cent stake. At the end of last year, the fund had 326.8 billion yuan in assets under management, of which 45.86 per cent was in fixed income, 34.24 per cent in stocks, and the remainder in equities investment and cash or cash equivalents.