BEIJING, June 8 China's sovereign wealth fund,
China Investment Corp (CIC), said its return on overseas
investment swung to around 11 percent in 2012 from a loss in
2011, in part due to its diversified investment portfolio.
Gao Xiqing, vice-president of CIC, was quoted by the
official Xinhua News Agency as saying that the total assets of
the fund have increased to $500 billion from $482 billion in
2011, 40 percent of which are invested overseas.
"The investment return in the past five years has surpassed
previous expectations a little bit, but not that much," Gao was
quoted as saying.
Created in 2007, the sovereign wealth fund was tasked to
earn higher returns from riskier investments using part of
China's foreign exchange reserves, which at $3.44 trillion are
the world's largest.
On a cumulative annualised basis since CIC's founding, the
fund's overseas return was above 5 percent by the end of 2012,
In 2011, the CIC suffered a 4.3 percent loss on its
international portfolio partly due to weakness on energy and
resource stocks as the European debt crisis and U.S. credit
rating downgrades roiled markets.
Gao said CIC could manage more funds in future as its
capital amount has yet reached the optimum point.
The fund received $30 billion in new funding in 2011 from
the State Administration of Foreign Exchange, the country's top
foreign exchange regulator.
The fund is still seeking a chairman after Lou Jiwei left to
become China's finance minister.
(Reporting By Xiaoyi Shao and Jonathan Standing; Editing by