China Investment Corporation is looking for more resilient assets in markets battered by the coronavirus pandemic as the nation’s $941 billion (Dh3.4 trillion) sovereign wealth fund seeks to boost long-term returns, executive vice president Zhao Haiying said.
The Beijing-based company added to its investments in credit markets in recent months, especially investment-grade loans in the US, after the Federal Reserve eased a liquidity crunch, Ms Zhao said on Saturday. CIC, as the fund is known, also bolstered holdings in healthcare and information technology stocks, and added exposure in regions such as Asia, where there was “less uncertainty” about the spread of the virus, she said.
CIC, led by chairman Peng Chun, is fine-tuning its investment strategies. It thinks a diversified portfolio is the best way to weather its biggest test since inception in 2007. A plan to boost alternative and direct investments to 50 per cent of global assets by the end of 2022 remains unchanged, with the private portfolio – which includes real estate and private equity – avoiding any “serious damage” even as cash flows slow, Ms Zhao said.
“As a long-term investor, we want to invest in growth,” Ms Zhao said in Beijing. “Given the many external shocks, you need to be more focused on the more resilient areas, strategies and themes, and avoid fragile areas.”
CIC’s overseas investments returned about 17 per cent last year based on unaudited results, she said, as global stocks rallied. That comes close to a record 17.6 per cent gain in 2017 and reverses a loss in 2018, when equities tumbled.
The pandemic and the collapse in global oil markets have caused more serious disruptions to other sovereign wealth funds. Norway, for example, is planning to draw a record 382bn kroner ($38.2bn) from its wealth fund, forcing the world’s largest sovereign investor to embark on a historic asset sale to generate cash.
While the steep declines in global equity markets earlier in the year made stocks the hardest hit asset class for many investors, there has since been a “very good rebound”, Ms Zhao said. Fixed-income investments helped mitigate volatility in equities, and CIC’s hedge fund allocations, among the world’s largest, also played a “positive role” in absorbing the market impact.
As a long-term investor, we want to invest in growth
Ms Zhao said the situation is less stable in emerging markets. She called for more cooperation among governments and cautioned against policy missteps, citing rising geopolitical tensions and long-term issues like debt burdens.
“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.”
The biog
Hometown: Birchgrove, Sydney Australia
Age: 59
Favourite TV series: Outlander Netflix series
Favourite place in the UAE: Sheikh Zayed Grand Mosque / desert / Louvre Abu Dhabi
Favourite book: Father of our Nation: Collected Quotes of Sheikh Zayed bin Sultan Al Nahyan
Thing you will miss most about the UAE: My friends and family, Formula 1, having Friday's off, desert adventures, and Arabic culture and people
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BIGGEST CYBER SECURITY INCIDENTS IN RECENT TIMES
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A list of the animal rescue organisations in the UAE
Benefits of first-time home buyers' scheme
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ICC Women's T20 World Cup Asia Qualifier 2025, Thailand
UAE fixtures
May 9, v Malaysia
May 10, v Qatar
May 13, v Malaysia
May 15, v Qatar
May 18 and 19, semi-finals
May 20, final
How much do leading UAE’s UK curriculum schools charge for Year 6?
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UAE currency: the story behind the money in your pockets
Freezer tips
- Always make sure food is completely cool before freezing.
- If you’re cooking in large batches, divide into either family-sized or individual portions to freeze.
- Ensure the food is well wrapped in foil or cling film. Even better, store in fully sealable, labelled containers or zip-lock freezer bags.
- The easiest and safest way to defrost items such as the stews and sauces mentioned is to do so in the fridge for several hours or overnight.
MATCH INFO
Tottenham Hotspur 3 (Son 1', Kane 8' & 16') West Ham United 3 (Balbuena 82', Sanchez og 85', Lanzini 90' 4)
Man of the match Harry Kane
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At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Gothia Cup 2025
4,872 matches
1,942 teams
116 pitches
76 nations
26 UAE teams
15 Lebanese teams
2 Kuwaiti teams
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
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6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
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KILLING OF QASSEM SULEIMANI
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MATCH INFO
Liverpool v Manchester City, Sunday, 8.30pm UAE
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