• IP addresses are NOT logged in this forum so there's no point asking. Please note that this forum is full of homophobes, racists, lunatics, schizophrenics & absolute nut jobs with a smattering of geniuses, Chinese chauvinists, Moderate Muslims and last but not least a couple of "know-it-alls" constantly sprouting their dubious wisdom. If you believe that content generated by unsavory characters might cause you offense PLEASE LEAVE NOW! Sammyboy Admin and Staff are not responsible for your hurt feelings should you choose to read any of the content here.

    The OTHER forum is HERE so please stop asking.

154th GLOSS OVER SUBPAR GIC (CPF) INVESTMENT $269 MILLION CAPITAL LOSS

makapaaa

Alfrescian (Inf)
Asset
[h=1]MAINSTREAM MEDIA GLOSS OVER SUBPAR GIC (CPF) INVESTMENT $269 MILLION CAPITAL LOSS[/h]
<!-- /.block --> <style>.node-article .field-name-link-line-above-tags{float: right;}.node-article .field-name-ad-box-in-article {float: left;margin: 15px 15px 10px 0;}.node-article .field-tags{clear: both;}</style> Post date:
20 Oct 2014 - 1:42pm





<ins id="aswift_0_expand" style="margin: 0px; padding: 0px; border: currentColor; width: 336px; height: 280px; display: inline-table; visibility: visible; position: relative; background-color: transparent; border-image: none;"><ins id="aswift_0_anchor" style="margin: 0px; padding: 0px; border: currentColor; width: 336px; height: 280px; display: block; visibility: visible; position: relative; background-color: transparent; border-image: none;"><iframe name="aswift_0" width="336" height="280" id="aswift_0" frameBorder="0" marginWidth="0" marginHeight="0" scrolling="no" vspace="0" hspace="0" allowfullscreen="true" style="left: 0px; top: 0px; position: absolute;" allowTransparency="true"></iframe></ins></ins>


I refer to ST’s “GIC sells London property to Norway sovereign fund for $1.2billion” and GIC’s “GIC divests its 100% interest in the Bank of America Merrill Lynch Financial Centre (MLFC)”.

(I’m just expanding on this issue)

Both are simply announcements which have not disclosed the fact that the 7-year GIC property investment has yielded almost zero returns after costs.

In the ST article, it states the selling price of “£582.5 million (S$1.2 billion)” based on the recent exchange rate of about 1GBP=$2.06 and purchase price of “£480 million” in 2007. But why has the purchase price not been converted into Singapore dollar?

GIC had actually bought the property in June 2007 when the British pound was very strong against our currency at about 1GBP=$3.06. When converted into local currency, the purchase price would be a whopping $1.469 billion. GIC had therefore made a capital loss of about $269 million, a huge embarrassment to the government.

From June 2007 to October 2014, the British currency lost 33% against the Singapore dollar.

GIC would of course have made some rental gains which is nothing to shout about – the property was bought near the top of the stock market cycle and rental yields and property prices are inversely correlated. Any net rental gains would have probably been offset by the capital loss and transaction costs. Our CPF investment yielded close to nothing.


Shouldn’t the headline then read “GIC’s $269 million loss in UK property investment offset by net rental gains, took huge risks for peanuts”?

The ST has clearly tried to make the investment look fantastic by stating “GIC bought the 585,000 sq ft London office property from Merrill Lynch in 2007 for £480 million, beating investors such as Syrian-born tycoon Simon Halabi and Irish investor Derek Quinlan.” What’s so great about an investment yielding close to nothing/fixed deposit returns? The Syrian tycoon and Irish investor must be the ones having the last laugh and are glad that GIC had beaten them to the ‘fantastic’ investment!

When GIC bought the Merrill Lynch office building in 2007, GIC Real Estate’s president Seek Ngee Huathad described the property as “a strategic acquisition which meets our investment objective of maintaining a diversified portfolio of long-term assets across all property sectors in gateway cities around the world”. Seven short years later, “long-term” investing is no longer fashionable and its “strategic acquisition” is quickly disposed of because it has a new strategy?

Our $1,468,000,000 CPF investment has yielded almost nothing for 7 years. Is this the reason why our CPF returns continue to be the lowest in the world?




<ins id="aswift_1_expand" style="margin: 0px; padding: 0px; border: currentColor; width: 336px; height: 280px; display: inline-table; visibility: visible; position: relative; background-color: transparent; border-image: none;"><ins id="aswift_1_anchor" style="margin: 0px; padding: 0px; border: currentColor; width: 336px; height: 280px; display: block; visibility: visible; position: relative; background-color: transparent; border-image: none;"><iframe name="aswift_1" width="336" height="280" id="aswift_1" frameBorder="0" marginWidth="0" marginHeight="0" scrolling="no" vspace="0" hspace="0" allowfullscreen="true" style="left: 0px; top: 0px; position: absolute;" allowTransparency="true"></iframe></ins></ins>


GIC appears to have a very simple strategy to profit from our CPF – it invests in higher-yielding foreign assets, pay CPF members low returns and keep the balance for itself. It has ignored forex risks because the PAP has accorded GIC ‘private limited’ status which enables it to be unaccountable to CPF members.

Investing $264 billion of our CPF in a foreign currency contradicts the government’s policy of gradual appreciation of the local currency. Why would any government invest hundreds of billions of dollars knowing full well its policies will adversely affect its investment returns in future? Don’t CPF investments have to be eventually converted to Singapore dollar to be returned to CPF members?

But with the legislation of more than $200,000 Minimum Sum (OA and MA) by next year, it appears the PAP never had any intention of converting CPF investments into local currency and return CPF monies to their rightful owners.

It is a fact that there are tens of billions of dollars in CPF investments which are yielding ‘peanut’ returns/underwater. To allay CPF members’ fear and suspicions that all may not be well at the GIC, it should disclose how CPF members are paid – if there are huge capital gains from other investments, other investments yielding extremely high returns, etc GIC should disclose them to the public.

Transparency is key to citizens’ trust without which CPF members will continue to suspect there are many more subpar CPF investments in GIC.


Phillip Ang
*The author blogs at http://likedatosocanmeh.wordpress.com


leehsienloongpointingfingers_zpsefb36004.jpg


You are one hell of a smart Alex! But too bad for you, 60% Stinkees are firmly addicted to me ass hole!
 

halsey02

Alfrescian (Inf)
Asset
How are the ones who are making the money?, those who recommended the purchase & those "involved" in it too...more indirectly & discreetly...all above board...but "money flows like water"...
 

Papsmearer

Alfrescian (InfP) - Comp
Generous Asset
How are the ones who are making the money?, those who recommended the purchase & those "involved" in it too...more indirectly & discreetly...all above board...but "money flows like water"...

In June 2007 when the dumbass GIC bought this building, the Dow Jones Industrial Average was at about 13,590. Today, its about 16,400. In other words, its has gone up 20.67%!!. All they had to do was go to any bank and park the $1.469 billion back then in any index linked mutual fund, and today, they would have earned 20.67% more or $303 million. All without having to support a high overhead staff and office. If this is not a clear example of PAP spending tax payer money on cushy jobs like running GIC and than seeing it under perform drastically, then i don't know what is.
 

Narong Wongwan

Alfrescian (Inf)
Asset
You guys kpkb no make money or loss money....

By flipping this 'investment' only god knows how much in undertable commission they pocketed.....you say they gong? They laughing all the way to bank and back.....
 

sleaguepunter

Alfrescian (Inf)
Asset
You guys kpkb no make money or loss money....

By flipping this 'investment' only god knows how much in undertable commission they pocketed.....you say they gong? They laughing all the way to bank and back.....

Every investments is "strategic", every sales and purchases involve lawyers, underwriters, etc etc... All the kaki langs make money this way. Nobody care the farking investment make any money for ppl of Singapore.
 

laksaboy

Alfrescian (Inf)
Asset
You guys kpkb no make money or loss money....

By flipping this 'investment' only god knows how much in undertable commission they pocketed.....you say they gong? They laughing all the way to bank and back.....

You see... any money they lose is billed to us. Any money they earn they keep for themselves.

In any case, it is business as usual for the PAP govt and its 'take, take, take' way to extract money from us.

Either way, we are fucked.
 

laksaboy

Alfrescian (Inf)
Asset
Transparency is key to citizens’ trust without which CPF members will continue to suspect there are many more subpar CPF investments in GIC.

The PAP govt doesn't care about your trust. It prefers that you fear it, obey it, don't ask too many questions, keep your head down and resume your duties as a wage slave.
 

Papsmearer

Alfrescian (InfP) - Comp
Generous Asset
You guys kpkb no make money or loss money....

By flipping this 'investment' only god knows how much in undertable commission they pocketed.....you say they gong? They laughing all the way to bank and back.....

If they are laughing all the way to the bank, than they are stupid. There are 2 ways to steal money. there is the merit way. eg. if the PAP makes $10 billion every year investing shrewdly for Temasek and GIC and don't suffer any huge losses, than the people don't mind if they steal $1 billion. Its the cost of doing business, end of story.

Than there is the Ferdinand Marcos way, which is to steal every thing u can lay your hands on, and put into positions the most incompetent corrupt people and relatives u have in order to have them help you steal. This method leads to exile, banishment, confiscation of assets and refugee status. And if the oppo that wins the election is really mean, they will send hit squads out to kill them if they don't repay back what they stole.
 

hofmann

Alfrescian
Loyal
If they are laughing all the way to the bank, than they are stupid. There are 2 ways to steal money. there is the merit way. eg. if the PAP makes $10 billion every year investing shrewdly for Temasek and GIC and don't suffer any huge losses, than the people don't mind if they steal $1 billion. Its the cost of doing business, end of story.

No, this is in no way, shape or form even remotely acceptable. Maybe to you, but certainly not to normal people.
 

syed putra

Alfrescian
Loyal
In June 2007 when the dumbass GIC bought this building, the Dow Jones Industrial Average was at about 13,590. Today, its about 16,400. In other words, its has gone up 20.67%!!. All they had to do was go to any bank and park the $1.469 billion back then in any index linked mutual fund, and today, they would have earned 20.67% more or $303 million. All without having to support a high overhead staff and office. If this is not a clear example of PAP spending tax payer money on cushy jobs like running GIC and than seeing it under perform drastically, then i don't know what is.

You forgot USD depreciated by 20% in 2009. So whatever yield bought in the westor using western currencies before 2008 will not bring in the returns expected.
 
Top