26 Oct
Singapore Fund to Invest in Distressed U.S. Assets
Posted in investing, market watch by 1 CommentA common theme throughout this blog is that the ongoing U.S. financial crisis brings with it investment opportunities. This message is one that resonates globally. GIC, a sovereign fund located in Singapore, hopes to uncover such opportunities, and is currently searching for distressed asset investments within the U.S.
The International Herald Tribune published an article last month that describes how GIC (Government of Singapore Investment Corp.) has already invested $18 billion of its $300 billion total assets in UBS Investment Bank and Citigroup, and intends to invest more in distressed assets.
Ng Kok Song, GIC’s CIO, affirms that “Problems in the U.S. would present very interesting opportunities in impaired assets…We are seeing a lot of opportunities both in public markets as well as private markets such as real estate.”
AMP Capital’s Shane Oliver, who heads AMP’s investment strategy, elaborated: “With shares already cheap and the risk of a meltdown and global depression likely to recede there is now a good chance that we have seen, or at least come very close to, the low for the bear market.”
Since no one is certain how much further the U.S. economy can fall, most experts caution investors to be both selective and patient in their investment strategies.
GIC’s move towards distressed assets anticipated by several days a similar move by investment bank Goldman Sachs, which allocated $10 billion (half of which originates from Warren Buffet’s Berkshire Hathaway company) towards distressed asset investment.
Send this to a friend.
Opportunity Looms in Asia | Smart-Stock.net
on November 17 2008
[...] asset opportunities in the coming year, and with nearly $500 billion in debt expected to mature on the Asian market, many more opportunities should arise as companies seek to get creative in their restructuring [...]