China Investment Corp., Beijing, on Tuesday reported that its global investment portfolio returned 11.7% in 2010, the same as the previous year.
Since its inception in September 2007, the sovereign wealth fund’s overseas strategy has returned an annualized 6.4%, according to the fund’s annual report. The global portfolio accounts for $135 billion, about 36%, of the CIC’s $374.3 billion in total assets; the remainder is invested in domestic financial institutions.
During 2010, fund officials drastically reduced cash holdings in the global portfolio to 4% from 32%according to the annual report. As a result, exposure to alternatives jumped to 21% from 6%, mostly investing in real estate, infrastructure and private equity. Equities also increase by 12 percentage points to 48%, while fixed income gained one percentage point to 27%.
Fifty-nine percent of the CIC’s global portfolio is managed externally. Geographically, 41.9% of the portfolio is invested in North America, 29.8% in Asia Pacific, 21.7% in Europe, 5.4% in Latin America and the remainder in Africa, according to the report.