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CIC Earned Over 50 Billion Dollars Last Year &Nbsp, And The Annual Yield Reached 11.7%.

2011/7/27 9:35:00 46

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CIC's US $50 Billion Annual Rate Of Return

In July 26th, China's sovereign wealth fund investment company released the 2010 annual report, which showed that CIC achieved a net profit of 51 billion 560 million US dollars in 2010, and CIC's global investment portfolio was full year.

Rate of return

Up to 11.7%, the cumulative annualized rate of return since the inception of the company is 6.4%.

New investment of US $35 billion 700 million

In 2010, the global economy gradually recovered, but the development process was very uneven. The growth of emerging economies, especially the BRICs, was strong, but the recovery of the developed economies was very slow.

In this market environment, CIC reduces the proportion of cash in the portfolio, increases direct investment and increases long-term asset investment.

The annual report shows that the proportion of CIC's cash portfolio in the total portfolio dropped from 32% at the beginning of the year to 4% at the end of the year, with a new investment of $35 billion 700 million, basically realizing full warehouse operation.

In its portfolio, equity investment accounts for 48%.

fixed

Earnings accounted for 27%, alternative investments accounted for 21%, cash and cash products accounted for only 4%, while fixed income, government bonds accounted for the highest proportion of investment, as high as 38%, corporate bonds accounted for 32%.

It is worth noting that CIC focused its attention on alternative investments in 2010 (such as real estate, securitisation assets, hedge funds, private equity funds, commodities, artworks, etc.), and the proportion of alternative investments in its global investment rose from 6% in 2009 to 21%.

Investment assessment period extended to 10 years

In terms of industry, equity investment in CIC's global portfolio is dominated by financial sector (17%) and energy (13%), while material, information technology, industrial and non essential consumer goods industries account for CIC's dispersion.

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10% (or more) of the portfolio.

CIC also disclosed that CIC held a board meeting in January 2011 and has decided to extend the investment appraisal cycle from 5 years to 10 years, taking the 10 year rolling yield as an important indicator of performance, in order to better balance the relationship between short-term behavior and long-term returns.

This is the third annual report released by CIC since its inception.

In 2008, due to the turmoil of the financial crisis, CIC was out of commission, and the rate of return on overseas investment was -2.1%.

In 2009, with the global economic recovery, CIC's return on investment was also positive, with a return of 11.7% on the global portfolio.

In 2010, it maintained a 11.7% level of earnings.