China Investment Corporation (CIC), the world’s biggest sovereign wealth investor said 2012 was a much better year for the $482-billion fund, with returns of over 10 percent.
“2012 was a much easier year than 2011 and the returns are much better,” Chairman and Chief Executive of CIC, Lou Jiwei told CNBC on Monday. “[T]he final numbers have not come out…but we are confident our returns will be over 10 percent.”
Double digit returns would be a big turnaround for the fund, which suffered its first ever decline in profits in 2011. Net profit declined 6.1 percent in 2011 to $48.4 billion compared to 2010.
Performance was affected by losses in its stock holdings as rising oil prices, Japan’s tsunami disaster, Europe’s debt crisis, and the U.S.credit rating downgrade that rocked markets in 2011. The fund also reported a 4.3 percent decline in returns on overseas investment in 2011, its worst-ever performance since it started publishing annual reports in 2008.
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