China’s Sovereign Fund: «Avoid Going Back to the ICU»
China’s sovereign wealth funds – CIC – will seek to add resilient assets in the current market environment to «avoid going back to the intensive care unit».
CIC, which has $941 billion in assets under management, will focus on assets from «more resilient areas, strategies, and themes, and avoid fragile areas», according to a «Bloomberg» report.
Executive vice president Zhao Haiying said that the fund had added investments in credit, especially investment grade fans in the U.S., alongside healthcare and tech stocks. It also added exposure in regions like Asia due to lower uncertainty caused by the pandemic.
«As a long-term investor, we want to invest in growth,» Zhao said.
Alternatives
Traditional assets aside, CIC intends to maintain its original plan to boost alternative and direct investment to 50 percent of global assets by 2022-end including unreal estate and private equity. Its existing hedge fund allocation already played a positive role in absorbing market impact from recent volatility.
«The liquidity crisis may be over and the darkest may be behind us,» she said. «But we must be very careful to avoid going back to the ICU.»
According to Zhao, CIC's overseas investments made around 17 percent in returns last based on unaudited results.
