CHINA - The China Investment Corp. (CIC) announced returns on its global portfolio of -2.1% in 2008 in the sovereign wealth fund's first publicly reported annual report since its inception.
The majority of CIC's US$298bn portfolio - 87.4% - sat in cash at the end of the year. The CIC's return on capital, which includes cash income and dividends from its domestic holdings, was 6.8% for the year.
The CIC also invested 3.2% in equities, 9% in fixed income and 0.4% in other investments.
CIC was formed in September 2007 with $200bn in assets. By the end of that year, it had made two highly-publicised investments in Blackstone and Morgan Stanley that combined totalled nearly $10bn.
But in 2008, the firm focused on setting up its capabilities and invested only $4.8bn.
The CIC said: "Because it was building its organization, infrastructure and capabilities, CIC had set relatively modest goals for deploying its capital in 2008. As the year unfolded, CIC made the decision to reduce the pace of its investing even further."
The firm said it was ready to deploy more cash this year and that "external managers selected for CIC's mandates will be an integral part of its investment management team."
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