China’s $1.2 Trillion Wealth Fund Loses Another Two Directors

Bloomberg News, Bloomberg News

(Bloomberg) -- China Investment Corp., the nation’s $1.2 trillion sovereign wealth fund, has lost two more directors, adding to a string of senior departures in recent years.

Sun Bo, who was head of the dynamic asset allocation team, resigned last month, people with knowledge of the matter said. Qian Shichun, a risk management team leader for private investments, also quit recently to seek other career opportunities, the people said, asking not to be identified discussing personnel changes.

The latest exits add to an exodus that already includes more than 20 team leaders and managing directors in the past few years, prompting the fund to set up a leadership group for high-level recruitment in 2020 to replenish its talent pool. The government-owned institution is seeking to keep hold of talent as it competes with private asset managers that can pay employees more.

CIC reiterated its stance that personnel change is a “normal phenomenon for enterprises,” and that the fund is committed to building a “first-class team.” Sun and Qian didn’t immediately reply to requests for comment.

The leadership group hired managers last year including Yu Bin from Neuberger Berman as a managing director at the public equities department, and Wang Cuishan from Pacific Eagle Holdings Corp. as a director in the real estate department, Bloomberg previously reported.

Overseas Portfolio

As head of the dynamic asset allocation team, Sun was in charge of adjusting public market holdings in the fund’s overseas portfolio of about $300 billion in line with macroeconomic and market changes.

Sun worked at CIC for more than 10 years and previously oversaw allocations of private investments such as private equity and real estate, also in the asset management department, the people said. He took over his latest role from Tang Hujun, who left last year.

CIC has in the past two years reshuffled its asset allocation department and revamped investment committees, seeking to bolster its ability to navigate volatile markets. The world’s second-biggest wealth fund is also seeking to lift direct and alternative investments to 50% of its overseas holdings by the end of this year to improve long-term returns.

The company posted a 14.1% gain on its overseas investments in 2020, when it stuck to its position as a long-term investor despite market gyrations, Executive Vice President Zhao Haiying said last year. The fund has yet to release its 2021 annual report.

CIC’s appeal as an employer has been eroded by shrinking opportunities, sliding compensation competitiveness and rising restrictions, current and former managers told Bloomberg in 2020. At least seven senior managers left since last year, including three executives from its asset allocation department and four team leaders.