home Latest News China sovereign wealth fund CIC profit rises 1.88 pct in 2016 – Nasdaq

China sovereign wealth fund CIC profit rises 1.88 pct in 2016 – Nasdaq

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* Investment income reaches $83 bln vs $76.7 bln in 2015
    * Global politics constitute main risk for 2017 -CIC

 (Adds executive comment, earnings details, context)
    BEIJING, July 11 (Reuters) - China's sovereign wealth fund
China Investment Corp (CIC)[CIC.UL] on Tuesday reported a 1.88
percent rise in 2016 net profit, boosted by stronger return from
its overseas portfolio.
    Profit rose to $75.3 billion, from $73.9 billion a year
earlier, its annual report showed. Total investment income was
$83 billion in 2016, compared with $76.7 billion in 2015.
    "Eight years following the global financial crisis, major
economies' rounds of easing policies and developed countries'
sluggish economic recovery lead to intensifying competition
among global funds, adding pressure on investment returns," CIC
Vice Chairman and President Tu Guangshao said in the report.
    "Potential risks are the rising uncertainties of global
politics and policies," he said, referring to the outlook for
    CIC, headquartered in Beijing, was founded in 2007 to help
China earn a higher return on its foreign exchange reserves. The
fund reported a 6.22 percent return on its overseas investments
in 2016, compared with a negative 2.96 percent in 2015.
    Its accumulated annualized investment return rose to 4.76
    The fund increased investment in alternative assets, and its
overseas investment arm signed 16 deals worth $5 billion, it
    Last month CIC signed the buyout of European warehouse firm
Logicor Ltd [IPO-LOG.L] from Blackstone Group LP <BX.N> for
12.25 billion euros ($13.95 billion), Europe's biggest private
equity real estate deal. [nL8N1IZ4YB]
    It also changed its investment program earlier this year,
opening an office in New York and shifting attention to the
United States. [nL4N1IM02F]
    Earlier this month, CIC joined a consortium led by TIAA
Private Investments and Antarctica Capital LLC to buy InterPark
LLC, the largest owner-operator of parking infrastructure in the
United States from Alinda Capital Partners LLC. [nASA09VOD]
    CIC started with initial funding of $200 billion. By the end
of 2016, its assets had surpassed $813.5 billion.

($1 = 0.8779 euros)

 (Reporting by Matthew Miller; Writing by Shu Zhang; Editing by
Stephen Coates and Christopher Cushing)
 ((shu.zhang@thomsonreuters.com; +86 10 6627 1271; Reuters
Messaging: shu.zhang.thomsonreuters.com@reuters.net))


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