Financial Performance

Following CDC’s restructure in 2004, the UK government set rigorous five year targets for CDC’s investments in commercially sustainable businesses in poor countries. Targets were also set for attracting other investors into those countries by demonstrating financial success.

In the period 2004 to 2008, CDC has:

• invested £1.5bn in private sector companies in Africa, Asia and Latin America;
• outperformed against the MSCI Emerging Markets Index by 134%, representing average annual returns of 18% per annum;
• helped two of its fund managers, Aureos and Actis, attract over £2.3bn in third party capital for investment in poor countries;
• generated £2.5bn of portfolio cash for reinvestment in developing economies;
• committed over £2.7bn to funds, predominantly in Africa and Asia; and
• doubled its net assets from £1.2bn to over £2.3bn.

For more details of our 2004-08 performance go here.

2008 Performance:

Despite a challenging economic environment, 2008 was a record year for CDC’s investment in developing markets. A total amount of £436m was invested by CDC, with £194m going into Africa and £230m to Asia.

However, CDC’s results in 2008 inevitably reflect the extraordinary turmoil in global capital markets. The upheaval in emerging economies’ stock exchanges and falling company valuations have taken their toll on CDC’s portfolio. Unrealised valuation reductions led to a decline in net assets of £359m in 2008.

For a more detailed overview of CDC’s financial performance in 2008, and during the last investment period, go to page 34 of our 2008 Annual Review .