CIC diversifies investment portfolio

China Investment Corporation (CIC), the sovereign wealth fund which manages US$200 billion of China's foreign exchange reserves, has allocated an unknown amount of money for investments in private equity and hedge funds to external managers, market sources reported yesterday.

Different from the worldwide hiring of managers for CIC's traditional assets, the managers for this fund was recommended by CIC's consultants, according to Jesse Wang, CIC's chief risk officer.

Wang reinforced the assertation that CIC aimed to act as just a financial investor in its overseas investments. it will look for opportunities to maximize on returns instead of building up stakes in sensitive sectors.

Additionally, several sources disclosed that CIC would entrust approximately US$25 billon to those selected investment managers.