SINGAPORE - The Government of Singapore Investment Corp. (GIC) yesterday said it made a US$1.6bn profit on its $6.88bn investment in troubled bank Citigroup.
The news came as the sovereign wealth fund announced it had reduced it's holding in Citigroup to 5% from 9%.
In an announcement yesterday, the GIC said it had exchanged its holdings of convertible preferred stock for Citigroup common stock at a conversion price of $3.25 per share.
"This exchange resulted in GIC having a shareholding stake exceeding 9% in Citigroup. Following the exchange, GIC has reduced its stake to below 5% through open market sales. This was the level GIC had intended when it invested in Citigroup through the convertible security," the fund said in a release.
GIC chief investment officer Ng Kok Song said: "GIC has made a profit of US$3.2bn on our investment of US$6.88 billion in Citigroup."
He said a $1.6bn profit has been realised, but the fund's remaining investment in the bank has a $1.6bn valuation profit at the September 21 closing price of $4.43 per share.
GIC said it would continue to invest in Citigroup and that the fund was "confident of its long-term prospects".
HMRC has confirmed providers operating relief at source pension schemes can continue to collect automatic tax relief at a basic rate of 20% under new Scottish Income Tax rules.
The Pensions Regulator (TPR) is seeking "improved" powers to set a schedule of contributions in defined benefit (DB) schemes in the government's upcoming white paper, it has revealed.
New regulatory rules which require providers and advisers to produce annuity illustrations will not solve the problem of consumer detriment as they are "fundamentally" flawed, according to Retirement Advantage.
Paul Budgen is set to join financial technology and auto-enrolment (AE) firm Smart Pension as director of business development.