The China Investment Corp., China’s largest sovereign wealth fund, announced its annual results for last year. At the end of December 2022, the fund had $1.24 trillion in assets, a decline from $1.35 trillion the previous year. The fund reported an annualized 10-year return of 6.43%, beating its benchmark by 26 basis points.
As of December 31, 2022, the CIC allocated 28.60% of its portfolio to public equities, 14.94% to fixed income and 53.21% to alternative investments, while 3.25% of the fund’s portfolio was in cash. The fund hit its long-term goal of having at least 50% of assets allocated to alternative investments.
Founded in 2007, the CIC’s investments are distributed globally, with 59.18% of the portfolio invested in the U.S., 26.81% in developed non-U.S. markets and 14.01% in emerging markets. Nearly two-thirds of the fund’s assets (63.3%) are managed externally, and 36.7% are internally managed.
2022 was a rough year for asset managers overall, and as the CIC noted, it marked a paradigm shift, with the macro environment for outbound investment facing tailwinds such as higher interest rates, inflation and heightened volatility.
“We look forward to this new chapter in our journey towards building CIC into a world-class sovereign wealth fund and to making fresh contributions to global economic advancement,” said Peng Chun, the CIC’s chairman and CEO, in the firm’s annual report.
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Tags: China, China Investment Corp, CIC, Peng Chun, Sovereign Wealth Fund