CIC posts net return of 14.27% in US dollar terms last year

China Investment Corporation, China's major sovereign wealth fund, announced on Friday its overseas investments posted a net return of 14.27 percent in US dollar terms last year, and the annualized cumulative 10-year net return reached 8.73 percent in 2021, beating its 10-year performance target by 296 basis points.

As of the end of last year, CIC's total assets grew to $1.35 trillion, with net assets of $1.25 trillion. The total State-owned financial assets under the management of Central Huijin Investment Ltd, a subsidiary of CIC, reached 5.58 trillion yuan ($783.68 billion), up 7 percent from the beginning of the year, said CIC in its annual report 2021 released on Friday.

In 2021, CIC stayed the course, pursued progress while ensuring stability, and successfully achieved all main business targets set for the year, said Peng Chun, chairman and CEO of the company.

Currently, its global investment portfolio consists of public equity, fixed income, alternative assets cash products and others, accounting for 35.4 percent, 15.4 percent, 47 percent and 2.2 percent of the portfolio, respectively.

CIC further enhanced the resilience and quality of the total portfolio by optimizing portfolio construction and its investment footprint. It continued to adopt a more granular approach to managing public market investments, making proactive adjustments to investment styles and managers, and refining its processes around proprietary investments. The company stepped up investments in private markets and optimized the structure of its private market investments, Peng said.

He stressed that CIC strengthened its comprehensive risk management system and guarded against material risk events.

In its overseas investment business, the company made prudent adjustments to risk budget targets for the total portfolio and harmonized risk management practices at all levels, while working toward incorporating climate change factors into the risk management framework and strengthening the integrated overseas investment risk management mechanism.

In its management of State-owned financial capital, CIC stepped up the risk monitoring of Central Huijin's portfolio companies, guiding them to carry out risk checks in key areas, and proactively addressing and resolving existing risks to achieve stable and healthy development, he said.

jiangxueqing@chinadaily.com.cn