CHINA’S US$1 trillion sovereign wealth fund is restructuring how its decides on international investments as it tries to boost efficiency and make better progress on a goal of increasing the share of private assets in its global portfolio.

China Investment Corp. (CIC) formed two committees earlier this month to approve investments in public and non-public assets, replacing bodies at units CIC International and CIC Capital that previously had overlapping responsibility for the process, according to sources familiar with the matter.

The new structure for overseas investing should provide a clearer mechanism to implement asset allocation strategies, the sources said.

The change will help CIC lift direct and alternative investments to half of a global portfolio worth more than US$300 billion by the end of next year, a target set in 2018.

The fund’s efforts to limit exposure to volatile public markets have been complicated by market rallies that led to an increase in the value of its holdings of bonds and stocks.

The pandemic and a rise in protectionism also made private deals more difficult.

(SD-Agencies)