Beijing-based China Investment Corp. says it has achieved annualized return of 10.6% for overseas investments in 2012. Through year-end 2012, its cumulative annualized return since inception in 2007 was 5.02%, according to its latest annual report.
Last year’s return came after a disappointing 4.3% loss in 2011. CIC’s best returns were achieved in 2009 and 2010, when it achieved 11.7% for both years.
The Chinese sovereign wealth fund’s total assets grew to US$575 billion at the end of 2012, up from 2011’s US$482 billion.
In the 58-page report, CIC also disclosed its global investment portfolio distribution. Long-term investments, which include private equity, energy, mining, real estate and infrastructure, took the biggest share of 32.4%.
Public equities accounted 32%, of which 49% is in U.S. equities. Fixed-income securities added up to 19.1%. Close to 55% of fixed-income securities were treasury bonds of developed countries.
Absolute return investments, which are primarily hedge funds, amounted to 12.7%, while cash and others took the remaining 3.8%.
CIC also says 36.2% of its assets were managed internally, with the rest being manged by external managers.
Net income also rose to US$77.4 billion from US$48.4 billion in 2011.
CIC was founded in 2007 with a registered capital of US$200 billion to diversify China’s foreign exchange holdings.
CIC has two subsidiaries: CIC International Co. and Central Huijin Investment. CIC International invests and manages overseas assets, while Central Huijin holds controlling stakes in Chinese state-owned banks.
By the end of 2012, Central Huijin holds 47.63% of China Development Bank, 35.46% of Industrial and Commercial Bank of China, 40.21% of Agricultural Bank of China, 67.72% of Bank of China and 57.21% of China Construction Bank.