China Investment Corp, the $200 billion sovereign wealth fund, has agreed to invest about $1 billion in Los Angeles-based Oaktree Capital Management, the Wall Street Journal reported on its website on Friday.

Oaktree is expected to use the funds to invest in distressed debt and other fixed income assets, the Journal said, citing unnamed sources.

Oaktree declined to comment. CIC could not be reached immediately.

The sovereign wealth fund is also expected to invest another $2 billion directly into other hedge funds, but it is pressing for lower fees, the Journal said.

The paper said other funds that could get CIC money include Winton Capital Management, Lansdowne Capital, Och-Ziff Capital Management and Canyon Partners.

Last month, sources told Reuters that the sovereign wealth fund planned to invest up to $2 billion in U.S. mortgages.

(Reporting by Paritosh Bansal)

Investment