2 town councils invested S$12m in Lehman-related structured products

[toiletsiao]

SINGAPORE: Two out of 14 PAP-run town councils in Singapore have invested in Lehman-linked structured products.

Holland-Bukit Panjang and Pasir Ris-Punggol town councils have invested a total of S$12 million in DBS High Notes, Lehman Brothers' Minibond Notes and Merrill Lynch's Jubilee Series 3.

That's about 0.6 per cent of the total funds available for investments.

Senior Minister of State for National Development and Education Grace Fu gave this update in Parliament on Monday.

Town councils can invest up to 35 per cent of their sinking funds in corporate bonds and equities.

Based on the financial statements submitted to the National Development Ministry for 2007, Holland-Bukit Panjang Town Council invested about S$8 million or 6.7 per cent of its available funds while Pasir Ris-Punggol Town Council invested some 2.6 per cent totalling S$4 million.

Other town councils such as Aljunied, Ang Mo Kio-Yio Chu Kang, Hong Kah, Marine Parade, Tampines and Tanjong Pagar also have exposure to Lehman Brothers.

The fund managers appointed by these town councils invested S$4 million in Lehman Brothers through their investment portfolio.

These account for less than one per cent of each town council's funds available for investments. - CNA/vm

Channelnewsasia.com

why the hell are they investing sinking funds into equities etc...shouldnt it be invested into the estate to upgrade facilities or build new amenities etc..under their administration... .. Holland-Bukit Panjang Town Council is a substantial shareholder of CREATIVE TECHNOLOGIES too..according to the Annual Report for FY2007... WOW

[iScoupe]

who sign the proposal form? wow tanjong pagar ! hmmm DBS better pay the town council first & fast haha.. !

[kenntona]

Kiang tio ho, mai gay kiang !!!

Now, are these "fun" managers ignorant and negligent, or that the investment bankers at DBS, Lehman or Merrill so good that they could "con" our local talents?

Perhaps a case of investment went wrong?

[DoggieHowser]

Din MM Lee say case closed liao? They should have gone in with their eyes open.

[toiletsiao]

Originally Posted by kenntona

Kiang tio ho, mai gay kiang !!!

Now, are these "fun" managers ignorant and negligent, or that the investment bankers at DBS, Lehman or Merrill so good that they could "con" our local talents?

Perhaps a case of investment went wrong?

Its an honest mistake...

[Newcastle]

here..we go again.... when PAP town council do it..its call honest mistake..

when opposition do it..its call irresponsible, unfit for leading lack of capability...

oh....notice they only mentioned losses in lehmann bro minibonds, high notes, ...etc..

did they mention the losses in creative technology shares? or any other losses in investment?

these MP are good at replying answers but not giving u full picture to throw smoke bomb at you...

note that the 16 PAP town council control an estimated, $800 million - $1 billion in funds..

minibond losses is at $12 million..where else did they lose money??

why is low thia kiang and chiam see tong silent on it?"

[C3P0]

Originally Posted by toiletsiao

Holland-Bukit Panjang and Pasir Ris-Punggol town councils have invested a total of S$12 million in DBS High Notes, Lehman Brothers' Minibond Notes and Merrill Lynch's Jubilee Series 3.

That's about 0.6 per cent of the total funds available for investments.

Based on the financial statements submitted to the National Development Ministry for 2007, Holland-Bukit Panjang Town Council invested about S$8 million or 6.7 per cent of its available funds while Pasir Ris-Punggol Town Council invested some 2.6 per cent totalling S$4 million.

Other town councils such as Aljunied, Ang Mo Kio-Yio Chu Kang, Hong Kah, Marine Parade, Tampines and Tanjong Pagar also have exposure to Lehman Brothers.

The fund managers appointed by these town councils invested S$4 million in Lehman Brothers through their investment portfolio.

These account for less than one per cent of each town council's funds available for investments. - CNA/vm

why the hell are they investing sinking funds into equities etc...shouldnt it be invested into the estate to upgrade facilities or build new amenities etc..under their administration... .. Holland-Bukit Panjang Town Council is a substantial shareholder of CREATIVE TECHNOLOGIES too..according to the Annual Report for FY2007... WOW

I am a bit surprised the town councils invested in the instruments. These instruments were not considered very high risk previously. But....not exactly very low risk either...

I hate it when they say it is only 0.6% of their total funds available for investment. Smoke bomb. I think the key is the absolute amount. S$12m loss = many many months of contribution from each HDB household. Now all gone down in smoke. Don't think DBS will compensate town councils. Anyway, even if they do, it's left hand go into right hand.

Though to be fair to all, no one expected the two brothers to fall.

Jialat, my flat 10 years never paint already....now don't know must wait until when

[toiletsiao]

Originally Posted by C3P0

I am a bit surprised the town councils invested in the instruments. These instruments were not considered very high risk previously. But....not exactly very low risk either...

I hate it when they say it is only 0.6% of their total funds available for investment. Smoke bomb. I think the key is the absolute amount. S$12m loss = many many months of contribution from each HDB household. Now all gone down in smoke. Don't think DBS will compensate town councils. Anyway, even if they do, it's left hand go into right hand.

Though to be fair to all, no one expected the two brothers to fall.

Jialat, my flat 10 years never paint already....now don't know must wait until when

yes exactly...anyway doing some simple calculations... if 12million is 0.6% of the total funds for investment...their total(all town council) funds available for investment it 2BILLION!!!!!! looking at how the market is heading this few mths...i wouldnt be surprised this 2billion worth becomes 1billion...sad...really..and u wander why u need to pay for your lift upgrading...

[toiletsiao]

Originally Posted by DoggieHowser

Din MM Lee say case closed liao? They should have gone in with their eyes open.

Yes you are right... .

"Other town councils such as Aljunied, Ang Mo Kio-Yio Chu Kang, Hong Kah, Marine Parade, Tampines and Tanjong Pagar also have exposure to Lehman Brothers."

Someone's gone in with their eyes wide OPEN........

[Mockngbrd]

so that's where my hdb sammans go to