China Investment Corporation’s first-ever disclosure of its direct US equity holdings reveals the fund’s cautious approach to investing in the US, according to a report by Shanghai-based research firm Z-Ben Advisors.
The SEC in the US requires investment managers with $100 million or more invested in securities overseen by the regulator to disclose their holdings annually on a form called 13F. CIC’s February filing of the form is a first glimpse into its US strategy, says the report, and offers interesting insights into the mindsets of the Chinese sovereign fund’s managers.
The Z-Ben report begins: "With a total of $9.6 billion in securities represented out of our estimated $110 billion total offshore investment pot, some of CIC’s long-term portfolio preferences can be discerned. However, a more careful reading of the report’s details shows remarkably...
