| China Investment Corporation(CIC),a representative of China's sovereign wealth funds,was established on September 29th 2007 to maintain and increase the value of foreign exchange reserve.However,it was criticized for huge book losses of several outgoing investments after its funding.As is known to all,appropriate asset allocation lays the foundation of gaining satisfied long-term risk-adjusted investment return.So this essay firstly reviewed basic theory of asset allocation and analyzed sovereign wealth fund's investment objectives,constraints and asset classes available for investment in consideration of sovereign wealth fund's features.Then,this essay compared and analyzed the actual strategic asset allocations of different countries sovereign wealth funds,and classified them into three categories with unique features.Moreover,this essay also analyzed the asset allocation differences and reasons for these differences between Government Investment Corporation(Singapore),Government Pension Fund-Global(Norway) and Temasek Holdings by case study,working out three ideas about how to judge the asset allocation of sovereign wealth funds.Last but not least,drawing on the experience of other countries,this essay gave suggestions on the improvements of China Investment Corporation's strategic asset allocation in order to increase the return of its outgoing investments. |
PDF Full Text Request