China’s sovereign wealth fund experienced its best ever annual performance in 2017, Bloomberg reports, gathering a 17.6% return from its overseas portfolio.
China Investment Corp. (CIC), whose overseas assets are dominated by equities, benefitted from a 20% jump in MSCI’s World Index last year, although progress has slowed significantly in 2018 as trade frictions between the US and China continue to threaten global markets. The fund’s net income also surged last year to $103.6 billion – a 38% increase on 2016.
In its annual report, CIC said that it will be redirecting capital to direct and alternative investments for more stable returns and reduce its exposure to volatile public markets.