SINGAPORE, Sept 19 Singapore sovereign wealth
fund GIC said on Monday the losses on its investment in UBS
were offset by good investment decisions, which has
helped its portfolio rebound to a level seen prior to the global
"In retrospect, we had said in late 2008 the timing for the
(UBS) investment could have been better," the Government of
Singapore Investment Corp said in a letter to a local newspaper
seen by Reuters.
"On the other hand, GIC also made good investment decisions
during the same period. These have offset the losses on UBS," it
GIC, which is UBS's biggest shareholder with a 6.4 percent
stake, did not comment on the latest news that the Swiss bank
had lost $2.3 billion on rogue equity trades.
It also did not disclose its paper losses on UBS or reveal
the size of its overall portfolio.
Analysts estimate GIC's portfolio at about $300 billion.
GIC's response came after Singapore-based Today newspaper
published a letter in which the writer urged the fund to
disclose the value of its holdings, including UBS.
The stake was worth around 2.5 billion Swiss francs ($2.86
billion), which means the sovereign wealth fund has lost about
77 percent of its 11 billion Swiss franc investment in UBS made
at the end of 2007, excluding dividends, according to Reuters
calculation based on UBS filings.
The net loss would be about 60 percent if coupon payments
from UBS worth about 2 billion Swiss francs were included before
the Singapore fund converted its notes to shares.
UBS Chief Executive Oswald Gruebel told Swiss television the
alleged fraud by a rogue trader would have consequences for
strategy and possibly for himself.
($1 = 0.875 Swiss Francs)
(Reporting by Saeed Azhar)