Top executives resign from $941Billion wealth Fund
A senior executive has left China’s $941 billion sovereign wealth fund, following a departure of executives in recent months, according to people familiar with the matter.
Meng Chen, an apex leader in Beijing-based China Investment Corp.’s direct investment arm, has resigned according to the people, who objected to being identified as people familiar with the matter.
An email to CIC’s press department seeking comment wasn’t immediately answered. As Meng has kept mute.
How will this hinder the future growth of the company?
CIC investment is affected by the CHINA-USA trade war, Hong Kong’s favored trade status been revoked by Trump and Protectionism.
A string of executives resigning in the recent month sends an undertone to investors that there is a riff in management.
Susan Gao, who was in charge of global fundamental equities managing more than $10 billion, resigned in April, joining Wallace Yu, who had led the fund’s multi-asset group.
Continued losses of experienced managers could undermine CIC’s performance amid unprecedented volatility caused by the coronavirus outbreak.
CIC is looking for more resilient assets in markets battered by the pandemic as the company seeks to boost long-term returns, Executive Vice President Zhao Haiying said in an interview last month with Bloomberg.
What strategies are in place to avert disparities faced by CIC
The group's business strategy is honed on the notion that Global economic growth needs more investment and threathened by a rise of protectionism targetting china.
A plan to boost alternative and direct investments to 50% of global assets by the end of 2022 remains unchanged, with the private portfolio having avoided any “serious damage” this year, she said. CIC set up CIC Capital in 2015 to expand direct investments in a bid to bolster returns and reduce exposure to volatility in public markets.
CIC Capital committed $4.9 billion for 24 projects in 2018, spanning infrastructure, energy, Internet, consumer and medical areas, according to that year’s annual report, the latest available. That compares with $3.8 billion the previous year.
Meng extends a string of senior departures since 2017. Roslyn Zhang, who was in charge of hedge fund allocations, resigned at the end of last year. Other departures include Zhang Qing, who was executive vice president of CIC Capital, and Winston Ma Wenyan, who stepped down as head of the North America office in early 2018.