China’s sovereign wealth fund CIC has announced the appointment of Fan Kungsheng as president of its Hong Kong subsidiary and made several changes to key senior managers.
Fan, 53, has been with China Investment Corporation since 2008 when he moved to Beijing from the US. He is a member of China’s 1000plan, a top-level recruitment programme to source the best Chinese talent from around the globe.
Previously he headed CIC’s department of fixed income and absolute return (portfolios covering credit derivatives, hedge funds, multi-asset and commodities) and before that the department of special investment (focused on energy, mining, precious metals, agriculture and infrastructure sectors).
Experience in alternative investments will be a useful tool, given parent CIC moved to increase its allocation to these areas this year, including private equity, real estate, infrastructure and direct investment.
CIC also declared on its website that there had been senior management changes, although it did not disclose any more details.
It added that with key personnel on board, “CIC International (Hong Kong) will take a market-based approach under the principle of measured progress and professional commitment, in accordance with well-defined investment and risk management strategies guided by its clear mandate.”
CIC International (Hong Kong) was established in November last year as the sovereign wealth fund’s first subsidiary outside of mainland China.
It is mandated to expand and improve CIC’s cross-border investment operation. Its main business covers public market equity and bond investment, non public market investment and economic research.
Last year, CIC appointed professor Lawrence Lau as chairman of CIC International (Hong Kong). He had previously served as a member of its International Advisory Council.
Besides Hong Kong, CIC also opened a representative office in Toronto in January. It employed 497 staff globally as at the end of June this year.
CIC saw its assets under management swell by 23% in 2010 to $410 billion and its profits by 24% to $52 billion. That is double the 11.7% return its $135 billion international (ex-China) portfolio recorded last year after it reduced cash holdings, increased direct investment and further diversified.
In July this year, CIC appointed Li Keping, former vice-chairman of the National Council for Social Security Fund, as its new chief investment officer, replacing Gao Xiqing.