China’s sovereign wealth fund China Investment Corp (CIC) reported a dollar-denominated net return of negative 2.96% on its overseas investment last year, due to volatility in international financial markets and foreign exchange losses triggered by an appreciating U.S. dollar.
The negative return drove its accumulated annualized investment return to 4.58% since inception in 2007 until the end of last year, according to its newly released annual report.
CIC reported a 5.47% return on its overseas investment in 2014.
As of the end of 2015, CIC’s total assets surpassed US$810 billion. Its annualized growth rate of state-owned capital reached 15.30% since 2007, it disclosed for the first time in this year’s annual report.
In CIC’s global investment portfolio, public equity, fixed income, absolute return, long-term investments, and cash and others accounted for 47.47%, 14.44%, 12.67%, 22.16%, 3.26% of its total portfolio respectively.
CIC says it has been exploring new business opportunities and refining its corporate governance.
Last year, it launched a specialized direct investment platform, CIC Capital Corporation, to share responsibility with CIC International Co., Ltd. on overseas investments.
Central Huijin Investment Ltd. continues to make equity investments in state-owned financial institutions in China.
Singapore’s Temasek Holdings recorded a negative 9% annual return in 2015, it said earlier this month.