12.01.2012 - Korean sovereign fund losses blamed on KICís purchase of Merrill Lynch stake
Korea Investment Corporation, Koreaís sovereign wealth fund, suffered a net loss of 3.3 percent in terms of average yield last year, hurt by the turmoil in the global financial market and a massive loss linked to its investment in Merrill Lynch, industry sources said Wednesday. The main culprit for the deeper loss is KICís poor stock investment, particularly concerning its holdings in Merrill Lynch. In early 2008, KIC bought $2 billion worth of Merrill Lynch shares, but the U.S. firm was later taken over by Bank of America in the aftermath of the subprime mortgage crisis. As a result, KIC came to own 69 million shares in BoA, but due to plunging share prices, the fundís losses stemming from its stake in BoA are estimated to have reached $1.3 billion...............................................Full Article: Source
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