China sovereign wealth fund CIC boasts 10.6% return in 2012
BEIJING (AFP) - Sovereign wealth fund China Investment Corporation (CIC) boasted a 10.6 per cent return on its global investment portfolio last year, according to the company's annual report.
The rise is in marked contrast to the previous year, when the fund suffered a 4.3 per cent loss, the lowest return since it was launched in 2007. By the end of last year, the company's total assets stood at US$575.2 billion (S$722.9 billion), compared to US$482.2 billion by the close of 2011, the report which was put online Saturday stated. The figure brings the company's accumulative annualised rate of return since its establishment to 5 per cent.
The fund was set up six years ago with US$200 billion to make better use of China's colossal foreign exchange reserves which now amount to US$3.4 trillion. After initially posting 11.7 per cent rises in 2009 and 2010, the fund fared poorly in 2011, hit by difficulties in the global economy and the worsening euro zone debt crisis.
In a statement released with the annual report, Mr Ding Xuedong, CEO and chairman of CIC, said intense market research and effective risk management helped the fund see a good return by the end of the year.