CIC expands global reach

The Chinese Investment Corporation will hire a throng of investment professionals to join its nearly 200-member global investment team, following the second meeting of its international advisory council in Shanghai this month.

A statement on the website of the $300 billion sovereign wealth fund said it was searching for “highly-qualified professionals worldwide to join us”, and news agencies report that will include up to 64 positions across asset allocation, financial analysts, credit and country risk analysts, hedge fund analysts, and private equity investment managers.

In its annual report last year, the CIC reported it had 194 staff in its global investment team, including 11 investment staff in the asset allocation and strategic research department, 14 in the public market investments department, nine in the tactical investments, 17 in private markets and 16 in special investments.

Those five departments report to the chief investment officer. Interestingly, both the CIO and deputy CIO, and a separate investment committee, report to the chief executive.

A 14-member international advisory council, which met for the second time this month, was formed in the middle of last year to advise the board and senior management on issues including portfolio development, strategy, and overseas investments.

In its second meeting – held in Shanghai from July 16-17 – council members exchanged views on global economic and financial trends, post-crisis investment pattern and opportunities, risk management and challenges, regulatory reform and legal compliance, and the role of sovereign wealth funds.

Two new members were recently appointed to the advisory council. John Mack, chairman and former chief executive of Morgan Stanley, and Joseph Yam, executive vice president of the China Society for Finance and Banking and former chief executive of the Hong Kong Monetary Authority.

They replace original members Arminio Fraga, former president of the Central Bank of Brazil, and Lawrence Lau, vice chancellor of the Chinese University of Hong Kong who resigned from the council due to “personal reason or concern on potential conflict of interest in business”.

Made up of academics and former central bankers from Asia, the Americas and Europe, the council is also tasked with advising on issues relating to corporate governance, investment and risk management strategies, policies and processes, regulatory policy issues, global economics and financial development and other issues impacting CIC’s business.

There are three European members of the advisory board including Nicholas Stern from the London School of Economics; Jean Lemierre, an advisor to the chairman of BNP Paribas; and president of RiskMetrics Group, and former chief executive of Norges Bank Investment Management, Knut Kjaer.