Singapore’s state fund GIC recently sold a large part of its UBS stake. The head of the fund has now said why it decided to do so.
The announcement in May that Singapore’s state fund GIC Private Limited had sold 93 million UBS shares worth about 1.5 billions Swiss francs had caught the headlines – finews.com reported on it.
Lim Chow Kiat (pictured below) says that the fund had sold the shares in bid to redeploy its capital, Singapore’s «Strait Times» reported today. The move however wasn’t to be seen as a lack of faith in the Swiss bank.
Lim has been in charge of GIC since the beginning of 2017. The fund still holds about 2.7 percent of the shares of UBS.
The fund of the Asian city-state has shifted capital into the private equity market over the past 12 months, the newspaper reported.
GIC bought its stake in UBS in 2007 and suffered a substantial of money on it, despite the gradual recovery of the stock. GIC had paid about 47 francs per share, which compares with the current price of about 17 francs.
