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Singapore's GIC losses about 33 bln US dlrs: sources


Jerms
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SINGAPORE, Feb 17, 2009 (AFP) - Government of Singapore Investment Corp, which has helped bail out troubled global financial institutions, suffered an investment loss of about 50 billion Singapore dollars (33 billion US) last year, sources told Dow Jones Newswires on Tuesday.

 

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In late 2007 and early last year GIC injected billions of dollars into Swiss bank UBS as well as US banking giant Citigroup, both of which suffered massive losses from US subprime, or higher-risk, mortgage investments.

 

Subprime troubles later evolved into the worldwide financial slowdown.

 

"The loss on the investment portfolio last year is estimated at around 45 billion to 50 billion," one of two people familiar with the GIC situation told Dow Jones.

 

"But, GIC has no thoughts to sell down any of its major investments. They'll wait until they recover."

 

UBS this month posted an annual loss of 17 billion US dollars, the largest in Swiss corporate history, and announced 2,000 new job cuts.

 

A second person said GIC's investment loss last year was "recently estimated to be similar to Temasek's."

 

The portfolio of Singapore sovereign wealth fund Temasek Holdings, which helped bail out Wall Street icon Merrill Lynch, fell about 31 percent over eight months last year, Senior Minister of State for Finance Lim Hwee Hua told parliament last week.

 

She said Temasek's portfolio of investments fell to 127 billion dollars at the end of November, down 58 billion from 185 billion dollars on March 31 last year.

 

Lim said it was not the first time GIC and Temasek had seen major declines in markets, and that GIC had "creditable returns" over the 20-year period to late 2008.

 

Asked for comment on the Dow Jones report, a GIC spokesman said the firm did not comment on "speculative reports".

 

GIC, one of the world's largest sovereign wealth funds, in September said its nominal rate of return over the 20 years to March 31 last year was 7.8 percent in US dollar terms.

 

"Temasek and GIC are long-term investors, and should be evaluated as such," Lim said. "GIC and Temasek have the ability and resources to weather the ups and downs, over multiple economic and market cycles."

 

 

 

 

 

 

No wonder i see lesser bankers at newton getting drunk recently... business oso not so good for some bbq seafood store.

 

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i was reading this mins ago... wondering.... UIC & Damasay often say they have the $ capability to tide this & that.. i wondering where they got so much $ =\

 

cant be reserve what, reserve oso will use up... ....

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i was reading this mins ago... wondering.... UIC & Damasay often say they have the $ capability to tide this & that.. i wondering where they got so much $ =\

 

cant be reserve what, reserve oso will use up... ....

 

 

UIC? u mean GIC?

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Likes that..guess we need Mr. Prata Man to explain in full details to us why GIC lost our reserve monies.. [gossip]

Today Shits Times reported front page new on Mr. Prata Man explaining on using our reserve monies... [hur]

Wayang only... [rifle]

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Nothing new in politics.

 

Seems like our Tim Ma Sick and HIC to kan cheong to invest here and there then kenna snoot when the investments go up lorry.

 

Can they come clean and tell us what monies they have generated over the years vs the monies lost? I guess not if it is still in the red...

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GIC or Tamasek? Those are two different entity.

 

The article mentioned GIC, how does Dow Jones Newswires get its source? I suspect they mixed up the two.

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Aiya, market is cyclical. How to always make money ALL of the time? (I think only Buffet managed to do that?) They did say that their average ROI was 7+% before this downturn what. Give it a break lah. Look at it this way, we now own some of the world's biggest companies at least in part. Nobody said investment is without risk. Better than sitting on the money and waiting for inflation to erode its value right?

Edited by Blueegg
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haven't u wonder.....why CPF die die cannot withdraw even if the person is in dire poverty?

 

age to withdraw also slowly increase...

 

minimum sum also increase along the way.

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i was reading this mins ago... wondering.... UIC & Damasay often say they have the $ capability to tide this & that.. i wondering where they got so much $ =\

 

cant be reserve what, reserve oso will use up... ....

 

ever wonder where those money they collected from selling a piece of paper with validity of 10yrs that cost tens of thousands dollars goes to?..........when was it started huh?... at one period, it cost 100K a piece.... [sweatdrop]

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Neutral Newbie

ever wonder where those money they collected from selling a piece of paper with validity of 10yrs that cost tens of thousands dollars goes to?..........when was it started huh?... at one period, it cost 100K a piece.... [sweatdrop]

 

 

tat one separate account....

 

 

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Neutral Newbie

Aiya, market is cyclical. How to always make money ALL of the time? (I think only Buffet managed to do that?) They did say that their average ROI was 7+% before this downturn what. Give it a break lah. Look at it this way, we now own some of the world's biggest companies at least in part. Nobody said investment is without risk. Better than sitting on the money and waiting for inflation to erode its value right?

 

Anyone who invested last year are suffering paper losses. Even Warren Buffett company suffered losses.

'Warren Buffett's company has just reported a 64 percent decline in net income for its first quarter. Berkshire's net income of $940 million, or $607 per share, is down sharply from the $2.6 billion of last year's first quarter....'

 

 

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big brother got very pissed off that now the piece of paper can only generate $600.

must cut cut cut to support that piece of paper back to $6K -> $60K [lipsrsealed]

 

ever wonder where those money they collected from selling a piece of paper with validity of 10yrs that cost tens of thousands dollars goes to?..........when was it started huh?... at one period, it cost 100K a piece.... [sweatdrop]

Edited by Wt_know
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market down, so almost everyone lose money. it is expected with investments and esp since they play with equities. but what i cannot stand is lack of transparency with gic and temasek.

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GIC and temasek...has billion and billion of dollars.....

btw where these money come from huh?

are we still getting back our cpf money back at 65? or break into more installment?

Edited by Lv3338
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GIC and temasek...has billion and billion of dollars.....

btw where these money come from huh?

are we still getting back our cpf money back at 65? or break into more installment?

 

U get ya $ in installments. There are 4 choices in CPF Life. I wish there is a 5th choice - give me back my $.

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