<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>May 19, 2009, 11.37 am (Singapore time)
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>GIC still bets on UBS, Citi
* GIC still puts faith in UBS, Citi after Temasek sells BoA
* GIC's Citi investment in the black after Citi shares rally
* Analysts say wealth funds refocusing on emerging markets
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SINGAPORE - Singapore's biggest sovereign wealth fund, Government of Singapore Investment Corp (GIC), is still sticking with its bets on Wall Street banks.
The GIC which has ploughed billions into Citigroup and UBS, told Reuters it was holding on to its investments.
'GIC is a long-term investor and will continue with its investments in Citigroup and UBS,' a GIC spokeswoman said on Tuesday. GIC is one of the world's largest sovereign wealth funds.
Last week, Singapore's other state investor Temasek said it had sold a 3 per cent stake in Bank of America at a hefty loss of over US$3 billion, stoking investor concerns that GIC and other sovereign funds might follow suit.
Singapore's two funds have suffered from the global market turmoil, with GIC's portfolio falling 25 per cent from a peak estimated at US$300 billion while Temasek's assets declined by 31 per cent during March to November last year.
Cash-rich sovereign wealth funds were thrust in the limelight in financial markets in recent years after high profile investments in ailing Western banks, but are now licking their wounds as the financial crisis hammered stocks.
After being hit by paper losses, GIC agreed to convert its preferred Citi shares at US$3.25 a share in February, compared with an original price of US$26.35 a share. But its investment is now in the black as Citi shares closed at US$3.64 on Tuesday.
'If you look at Citi, it turned out to be pretty good for them,' said a banker who has advised sovereign wealth funds on M&A deals.
The biggest fear over Citi earlier this year was a forced nationalisation, but analysts said those risks may have subsided.
'We think that the broad nationalisation concerns are behind us,' BlackRock's CIO Bob Doll told reporters in Singapore on Monday.
GIC's second major Western bank investment was UBS, which has a big regional private banking business in Singapore and plays an important role to cement the city-state's goal of becoming Asia's premier wealth centre.
'In the general financial malaise, SWFs are still one of the few remaining sources of capital willing to take on risk and opportunity amid the debris of depressed asset markets and lame banks,' Jan Randolph at IHS Global Insight said in a report this month on wealth funds. -- REUTERS
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</TD></TR><TR><TD vAlign=top width=452 colSpan=2>GIC still bets on UBS, Citi
* GIC still puts faith in UBS, Citi after Temasek sells BoA
* GIC's Citi investment in the black after Citi shares rally
* Analysts say wealth funds refocusing on emerging markets
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</TD><TD>Feedback</TD></TR></TBODY></TABLE>SINGAPORE - Singapore's biggest sovereign wealth fund, Government of Singapore Investment Corp (GIC), is still sticking with its bets on Wall Street banks.
The GIC which has ploughed billions into Citigroup and UBS, told Reuters it was holding on to its investments.
'GIC is a long-term investor and will continue with its investments in Citigroup and UBS,' a GIC spokeswoman said on Tuesday. GIC is one of the world's largest sovereign wealth funds.
Last week, Singapore's other state investor Temasek said it had sold a 3 per cent stake in Bank of America at a hefty loss of over US$3 billion, stoking investor concerns that GIC and other sovereign funds might follow suit.
Singapore's two funds have suffered from the global market turmoil, with GIC's portfolio falling 25 per cent from a peak estimated at US$300 billion while Temasek's assets declined by 31 per cent during March to November last year.
Cash-rich sovereign wealth funds were thrust in the limelight in financial markets in recent years after high profile investments in ailing Western banks, but are now licking their wounds as the financial crisis hammered stocks.
After being hit by paper losses, GIC agreed to convert its preferred Citi shares at US$3.25 a share in February, compared with an original price of US$26.35 a share. But its investment is now in the black as Citi shares closed at US$3.64 on Tuesday.
'If you look at Citi, it turned out to be pretty good for them,' said a banker who has advised sovereign wealth funds on M&A deals.
The biggest fear over Citi earlier this year was a forced nationalisation, but analysts said those risks may have subsided.
'We think that the broad nationalisation concerns are behind us,' BlackRock's CIO Bob Doll told reporters in Singapore on Monday.
GIC's second major Western bank investment was UBS, which has a big regional private banking business in Singapore and plays an important role to cement the city-state's goal of becoming Asia's premier wealth centre.
'In the general financial malaise, SWFs are still one of the few remaining sources of capital willing to take on risk and opportunity amid the debris of depressed asset markets and lame banks,' Jan Randolph at IHS Global Insight said in a report this month on wealth funds. -- REUTERS
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