BEIJING -- Total assets of China's social security fund increased nearly tenfold over the past 10 years, as the government strives to keep high investment returns amid the country's high inflation.

The fund's total assets rose to 856.69 billion yuan ($131.7 billion) in 2010, up from 80.51 billion yuan in 2001, the National Council for Social Security Fund (NCSSF) announced Thursday.

This year the fund gained 32.12 billion yuan from equity investment with a yield of 4.23 percent, according to the NCSSF annual report.

By the end of 2010, total equity investment returns stood at 277.26 billion yuan, marking a 9.17-percent annual yield over the past ten years, 6.77 percentage points higher than the average inflation, the report indicated.

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The NCSSF, which was launched in August 2000 with a mission to preserve and increase the value of the country's social security fund, was designed to solve the challenges of an aging population and serve as a coffer for future social security expenditures.

NCSSF chairman Dai Xianglong expects the total assets of the fund to reach 1 trillion yuan by the year's end and 1.5 trillion yuan by 2015 through sounder and refined management.

Expanding investment

The fund has four primary capital sources: stock rights allocated from state-owned shares; a public welfare fund; and investment returns and funds earmarked by the government, according to the report.

It also plans to raise money through channels such as the state capital management budget and the profits of state-owned enterprises during the country's 12th Five-Year Plan (2011-2015) period, the report said.

The fund will increase by least 100 billion yuan in investments in 2011, fueled by the steady growth of its capital, Dai said.

The NCSSF currently allocates 45 percent of its capital in fixed income investments such as treasury and corporate bonds, 30 percent in stocks, and 25 percent in private equity (PE) funds and other sectors.