China's SWF denies losses
CHINA - Sovereign wealth fund China Investment Corporation (CIC) has denied reports it incurred massive losses through an investment in the Reserve Primary Fund.
Reserve Primary Fund became the first money-market fund in 14 years to 'break the buck', after writing off debt issued by bankrupt Lehman Brothers.
In a statement, CIC said: "Currently CIC is a creditor, not a shareholder, of the fund. Although CIC had invested in the fund, it filed a redemption order before the fund announced the suspension of redemption; in addition the fund has confirmed in writing that CIC's investment will be redeemed at par.
"On legal advice, CIC is confident of its position with regard to the full recovery of its money."
CIC also said it was not subject to a 3% loss on principal as it filed its redemption order before the fund's suspension deadline.
It said it had been in contact with relevant parties in the US, including the Securities and Exchange Commission, to highlight the fund's promise of full repayment and CIC's legal rights.
Latest stories
Latest issue - 26 April
This week's edition of Professional Pensions is out now
Failure to legislate for default pension guidance 'leaves bitter taste'
MPs failed to place legislation into the Financial Guidance and Claims bill that would have made pension guidance default, which Just Group director Stephen Lowe said left a "bitter taste".
Govt 'should double' tax exemption on employer pension advice
Aegon has called for the government to double the tax exemption on employer-arranged pension advice, up from £500 to £1,000.
European investor confidence climbs as risk appetite growth prevails
Institutional investor confidence in Europe rose by 8.9 points in April with each region showing growing appetite for risk, according to State Street Global Exchange.
Most read
