I refer to “GIC pares stake in UBS at a loss; combined strategy with Citigroup sees positive return”. link
GIC should not attempt to mislead Singaporeans by linking an individual losing investment (UBS) to another profitable one (Citi). Fact: GIC never once mentioned any combined strategy in 2007 or 2008 when it speculated in both banks.
If the UBS and Citi investments were a combined strategy, then GIC must have also confirmed that it had been speculating with our CPF and reserves.
GIC had invested a total of about US$16.65 billion in UBS (US$9.75 billion) and Citi (US$6.9 billion). A S$23,000,000,000 ‘combined strategy’ in the banking sector at the height of the subprime crisis amounts to speculation.
Fund managers who risk a large percentage the portfolio and invest in companies merely because they were very good franchises/brand names instead of conducting due diligence should be fired for recklessness, ie GIC managers.
This ‘combined strategy’ thingy sounds really stupid. GIC has also not provided figures to substantiate its claim which has led many to logically conclude billions in CPF investments have been lost.