China Sovereign Fund Praises 2012 Returns

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 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.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza