GIC has internal communication problems?

In Corporate governance, GIC on 21/09/2011 at 8:25 am

I am pleased to read in today’s FT that GIC has in a statement (can’t find it to link to) expressed its concern to UBS abt the latest loss of US$2.3bn.

At least, it is concerned it bought us 6.4% in a dog with fleas.

Why these comments by me?

Yesterday I was appalled by this media statement to Today. GIC came across as saying, “So what if GIC lost money in UBS, it made money elsewhere, and that’s the important thing.” This was hedgie gunslinger talk, not that of a responsible fund manager.

True. performance should be judged on the performance of the entire portfolio,  not its individual holdings. But

– where a bigger than normal bet is made (GIC usually buys less than 5% of an investee),

– in a special deal for GIC alone,

– where it trumpeted very loudly its prowess at the time when the deal was made,

such such public insouciance by Jennifer Lewis Head, Corporate Affairs and Communications, is unacceptable.  Especially as GIC manages our money. (BTW, yes, she helped Tony Tan in the debacle of a campaign in her personal capacity.)

So I am glad to read that GIC is concerned abt its investment in UBS.

  1. PR exercise to appease the slavering & frothing netizens, since the nice little letters and press releases from corp comm didn’t seem to work.

    Let’s see if they force Gruebel out (how come I keep thinking about ‘Allo ‘Allo?) and whether they will spin off the investment banking arm. Doubtful as this is where the big bucks are and what will happen to all the oh so poor private bankers they’ve been hiring en masse in S’pore just recently? Don’t sound good to have newspaper saying retrenchment of high-class bank salesmen in the works. And besides will reduce GDP bonus by at least 1 month — that’s $300,000 for you lesser mortals.

  2. Just PR talks. “Concerned” but not enough to fire the CEO. Sources said he has the support of GIC to stay on and finish his restructuring. So concerned my ass..just for the public consumption. According to reuters, GIC has already lost up to 77% of its initial investment in UBS. So as a concerned singaporean, here’s I have to say. If Gruebel gets to keep his job, he better make sure that no Singaporeans are cut in the latest 3200 job cut announcement. Make it a small price for his stay, plus the interests he has to pay back to shareholders.

  3. […] Temasek State Funds Investments – Thoughts of a Cynical Investor : GIC has internal communication problems? – TOC: The rogue trader and his impact on […]

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