atans1

GIC’s loss on UBS and Citi can fund 13 YOGs

In Banks, GIC on 01/10/2010 at 6:17 am

The unrealised loss is S$5.5bn or 28.8% of the total investment in both banks. (S$18.1bn). This can fund slightly more than 13 of VB’s Kiddie Games and buy the poor (he berates) all the hawker and restaurant meals (sharks’ fin combs included) they will ever.

At last Friday’s closing price of US$3.90, Citi’s shares would be worth about US$4.4 bn, compared to the US$3.3 bn (S$4.3bn) cost. This gives ¬†GIC a paper profit of US$1.1 billion (S$1.5bn). Gd job GIC. And I didn’t take into account the profit it made selling part of its stake.

But GIC’s investment of 11 bn Swiss francs (originally convertible notes issued by UBS) or S$14.8bn is showing an unrealised loss of 4.9 bn francs (S$6.6 bn) based on last Friday’s closing price, even taking into the 2 bn francs it received in interest.

GIC now owns 3.8% of Citi’s common stock and 6.4% of UBS’s common stock, GIC said at a briefing on its latest annual report on Tuesday.

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  1. For investment returns, u should use a portfolio approach. If some of your shares lost money but some of your shares make money, u will still be a good investor if your total share portfolio is profitable.

    Mr cynical investor, how big is your share portfolio?

  2. [...] GIC: Waz the point of report? In GIC on 04/10/2010 at 5:14 am My dig at GIC and VB got a response that implied I didn’t know the theory about judging results by the entire portfolio¬†http://atans1.wordpress.com/2010/10/01/gics-loss-on-ubs-and-citi-investment/ [...]

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