China Investment Corp., Beijing, recorded a 17.4% return on its overseas investments for the year ended Dec. 31, while its assets broke the $1 trillion mark, the sovereign wealth fund reported Friday.
The fund's overseas portfolio lost 2.4 % in 2018.
Total investment income was $121.4 billion in 2019, up 79% from a $67.8 billion gain in 2018, according to the fund's annual report.
The size of the overseas portfolio was not disclosed.
The wealth fund's total assets grew 11.6% to $1.05 trillion over the year, up from $940.6 billion a year earlier.
CIC's annualized 10-year net return was 6.6% as of Dec. 31, which beat the 10-year performance target by 92 basis points, Peng Chun, chairman and CEO, said in the report.
The wealth fund has three investment subsidiaries: CIC International, which runs the equities, bonds and alternative assets; CIC Capital Corp., which makes direct investments and manages bilateral, multilateral and platform funds; and Central Huijin Investment, an equity manager that invests in state-owned financial institutions in China.
Central Huijin invested in 18 financial institutions in China, with capital under management of 4.78 trillion yuan ($684.7 billion) as of Dec. 31.
The wealth fund's global investment portfolio had a 42.2% allocation to alternatives, including hedge funds, private equity and real estate. The allocation fell from 44.1% as of Dec. 31, 2018.
Equities accounted for 38.9% of the portfolio, up from 38.3% a year previous, while fixed-income exposure grew to 17.7% from 15.2%. The remaining 1.2% was held in cash and other exposures, down from 2.4% in 2018.
By geography, 52.2% of the global portfolio was invested in the U.S., 32.7% in non-U.S. developed markets and the remaining 12.1% was invested in emerging markets and other countries as of Dec. 31.
The proportion of assets run internally grew to 47.8%, up from 42.1% a year earlier.
Regarding 2020 and the outbreak of the COVID-19 pandemic, Mr. Chun said executives "quickly activated an emergency management mode for dealing with extreme market scenarios" within its overseas investment business. "This included an 'Information Superhighway' mechanism to step up communication with and information flows from international institutions. We are closely tracking and analyzing the status of our total portfolio and investments in different asset classes, and have timely lowered our total portfolio risk target," he said in the report.
Mr. Chun said the fund grew exposure to the digital economy theme and to credit and took "a carefully calibrated approach to managing our investments in non-public markets," which allowed it to beat its benchmark in the first half of 2020. Further details could not immediately be learned.