China Investment Corp. reported a 14.27% gain on its overseas investments in 2021, while the sovereign wealth fund posted its biggest increase in allocations to alternatives.
The sovereign wealth fund said alternatives accounted for 47% of its overseas portfolio as of Dec. 31, up from 43% the year before.
Equities, meanwhile, fell to 35.4% from 38% while fixed income dipped to 15.4% from 17%. Cash edged up to 2.2% of CIC's international portfolio from 2%.
CIC's international investments are conducted through two of the fund's three subsidiaries: CIC International Co. and CIC Capital Corp., which oversee its public and private market allocations. The fund's third subsidiary, Central Huijin Investment, holds CIC's investments in big state-owned financial firms.
The annual report said the value of CIC's Central Huijin-held domestic assets rose 7% in 2021 to 5.58 trillion yuan ($875.5 billion), while total assets — overseas and domestic — grew to $1.35 trillion, up from $1.2 trillion the year before.
With the latest 14.27% gain, CIC's annualized returns on its overseas holdings for the 10 years through Dec. 31 came to 8.73%, almost 3 full percentage points above its performance target.