Wealth fund aim modest

HONG KONG: China's sovereign wealth fund targets a modest single-digit rate of return and has adopted investment policies that are more akin to large public pension funds, according to China Investment Corporation's (CIC) Vice-President and Chief Risk Officer Wang Jianxi.

Wang said the CIC's new investment policies "define" the fund as a "large public pension or endowment fund" with eyes set on long-term goals rather than short-term gains for the large sum under its management.

Speaking at the Credit Suisse Asia Investment Conference luncheon yesterday in Hong Kong, Wang said CIC is "conservative" and aims at a prudent mid-single-digit rate of return. The chief risk officer said as long as CIC performs better than the foreign reserves in the long run, it will have achieved its mandate.