China Investment Corp, the sovereign wealth fund of China, has reportedly said that it had increased its overseas investment returns by 11% in 2012 after reporting a loss back in 2011. The reason for such growth is the diversification of the investment porffolio for the fund.

CIC Vice President Gao Xiqing was quoted by the official Xinhua News Agency saying that the fund's total assets have increased from US$482 billion in 2011 to US$500 billion in 2012. About 40% of those investment funds are located in investments overseas.

Gao reportedly said, "The investment return in the past five years has surpassed previous expectations a little bit, bit not that much."

The sovereign wealth fund was established back in 2007 and was given the task to undertake high risk high reward investments using the foreign reserves of China as its base funds. China currently has US$3.4 trillion in foreign reserves, making it the world's largest fund.

Back in 2011, the CIC had lost 4.3% of its international portfolio value because of the inherent weakness of the energy and resource stocks it held, compounded by the debt crisis in Europe and US credit rating downgrades that shook the market.