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Source: China Knowledge China Knowledge

CIC to spend US$2 bln buying U.S. distressed assets

Published: 06 Oct 2009 19:48:10 PST

Oct. 7, 2009 (China Knowledge) - China Investment Corp, the country's US$200-billion sovereign wealth fund, will invest US$2 billion in three U.S. funds to acquire distressed assets in sectors ranging from property to infrastructure, said sources close to the matter.

The unnamed sources said that the Chinese sovereign wealth fund plans to invest between US$600 million and US$700 million in each of the three distressed asset investment funds, one of which is managed by Goldman Sachs and another of which is managed by Oaktree Capital. However, the name of the third fund remains unknown.

The three funds that will receive investments from CIC will focus on debt-burdened U.S. assets, said the sources.

CIC in August reported a return of negative 2.1% on its global investment portfolio in 2008 due to the global financial crisis. In 2007, the fund's nominal annualized return on global investments stood at 0.2%, according to an earlier report from China Knowledge.

A senior official with CIC said earlier that the fund will become more active investing abroad as the economy improves and that it will continue to adhere to its prudent and secure investment principles in 2009.


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