UK pharmaceutical company Glaxo has taken control of its investment portfolio, worth around L2 billion ($3.14 billion) out of the hands of its own investment management group based in Bermuda and given it to outside investment experts.
The move follows fears about the company having around half of its investment in the global bond market which has been suffering of late (Marketletter July 4). In recent months Glaxo is thought to have lost around L100 million through its investments, but has not confirmed this figure. Glaxo has said that from now on it will focus on pharmaceuticals as opposed to investment banking.
Around 10% of Glaxo's investment portfolio is made up of structured bonds, and the company is also thought to have had holdings in collateralized mortgage obligations areas which are believed to be behind the losses.
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