The Clean Energy Finance Corp missed its mandated investment return by a wide margin over the year to June 2016, producing a yield of 4.65 per cent versus a target of 5.95 per cent to 6.95 per cent. From 10 May 2016 the return target was set as the five-year Australian Government bond rate plus three to four percentage points per annum, before operating costs. For a newly defined Clean Energy Innovation Fund, the target is the five-year Australian Government bond rate plus one percentage point per annum. The CEFC's annual report explained that "from inception through June 2016, the portfolio benchmark return" of 4.65 per cent was "calculated in accordance with the May 2016 investment mandate."In the 2015 financial year, CEFC put its yield at 6.1 per cent, pointing out that this return "is lower than the figure of seven per cent from the corresponding period last financial year."With returns below par in 2016, the CEFC, via its annual report, "expressed the view that, while the one per cent reduction in the PBR target from 16 May 2016 was a welcome change, it remains an unrealistically high return target. "The board's view remains that targeting such a high rate of return requires the CEFC to seek out-of-market returns, which will be difficult to achieve."The CEFC put its surplus at A$21.1 million in the year to June 2016, down from $31.1 million the year before.At the end of 2016, CEFC put its portfolio of investment commitments at $1.7 billion, a 44 per cent increase on the previous year. "Every $1 of CEFC investment was matched by $1.95 of private sector investment, which compares favourably to a target of $1: $1," the report stated.