As a major institutional investor, pension fund is playing a more and more important role in international capital market. In China, fund accumulation mechanism was established in 1990s. So far we have a three-pillar pension fund system which includes state social security fund, enterprise annuity and commercial insurance. With the rapid growth of pension asset, the investment scope and influence of pension fund are increasing progressively. This article studies the operational pattern of pension fund from a global perspective, analyzes the investment policy and practice of state social security fund and enterprise annuity, and gives prediction of pension fund operation and investment. Looking ahead to the future, asset size of pension fund will continue increasing with the aging of society and the pension investment will participate in the capital market on a larger scale. <<