The China Investment Corporation (CIC) announced on Monday it earned a 17.59 percent net annual return on its overseas portfolio in 2017, that was also the fund's highest return since its establishment in 2007. 

The Chinese fund also said it would continue to invest in the US despite recent trade tensions.

The CIC is the sovereign wealth fund responsible for managing part of China's massive 3.1 trillion US dollars in foreign reserves. The staggering growth raised the CIC's assets to over 940 billion US dollars and its net cumulative annualized return to 5.94 percent for the past ten years. That return was more than double the yield of US ten-year treasury bonds, of which China holds about 1.1 trillion US dollars. 

"Our exceptional performance in 2017 was thanks to favorable global financial market conditions and our suitable investment strategies,” said Tu Guangshao, Vice Chairman & President of CIC.

A total of 43.6 percent of CIC's global investment portfolio was in public equities such as US stocks by the end of 2017. And 39.3 percent was in alternative assets, including infrastructure and real estate. Fixed income such as bonds accounted for 15.9 percent and cash 1.2 percent. 

"Our investment in public stocks enjoyed the fastest growth, followed by private equity and direct investment. Fixed income investment was the least profitable," said Li Wenping, managing director of CIC’s financial department.

Nearly half of the CIC's overseas portfolio last year was in US stocks and other assets. With the current trade tensions, the Trump Administration is scrutinizing Chinese investment in America. Tu said such tensions are short term while China's investments are for the longer run. 

"The Trump Administration encourages foreign investment to the US. CIC's US investment is only beneficial to the US economy, companies and jobs. CIC is a financial investor, only seeking financial return, so it will not involve in any company management. CIC is a long-term investor with a large investment, and that's what many companies would love to have especially infrastructure. So it's totally unnecessary to politicize CIC's investment in the US," Tu noted. 

Tu added the CIC is working with Goldman Sachs in a five-billion-US-dollar fund, established in November 2017 to invest in US manufacturing. So far, the fund-raising has been smooth. 

CIC said it would continue to invest in the US despite recent trade tensions. The Chinese sovereign fund says its investment in American stocks and the US manufacturing sector is important in its portfolio and that China-US trade and investment cooperation is for the long-term.