PAP must be upfront with CPF members on GIC’s investment losses

As CPF Board continues to embark on new propaganda measures to channel more funds to GIC, CPF members would do well to think very carefully and demand for more transparency before parting with their cash/topping up parents’ CPF accounts.

According to a trusted source – SWFI – GIC appears to have lost tens of billions during the past 2 years alone.

SWFI

In June 2015, GIC had assets valued at US$344 billion which increased to US$350 billion a year later. This translates into an annual return of only 1.7% which is clearly insufficient to pay even CPF OA rate of 2.5%.

But GIC did not merely earn poor returns: it actually lost money. This is because its assets should have increased by US$19 billion (S$314 bil – S$287 bil) from injection of fresh CPF funds as well as retained interest.

A year later in June 2017, GIC’s assets grew by US$9 billion. As can be see from the table above, its assets should have increased by at least US$22 billion (S$345 bil – S$314 bil) to account for injection of fresh CPF monies and retained interest.

If GIC had made zero return, its portfolio should be at least US$372 billion (US$350 + US$22 billion). That it had only US$359 billion confirms a loss of US$13 billion during the year.

However, GIC’s losses during the past 2 years are much larger because it also manages revenue from land sales which amounted to at least $25 billion.

The government should be upfront and not attempt to put on a brave front by shifting CPF goal posts to conceal investment losses.

Are losses so unmanageable that KFC to be appointed director and special adviser of GIC?

 

Phillip Ang

 

 

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18 Responses to “PAP must be upfront with CPF members on GIC’s investment losses”

  • karma:

    Special nowadays 20 in GateLang
    Jerk it out & cPeeF not pupils $$

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  • SG Bohchup is Shocking:

    The CPF concerns are so real and valid that its shocking that most singaporeans still rather die than voice up and question and demand for clarity and answers.

    Are singaporeans very timid ?

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  • Trust only myself:

    Such news in other countries there will be protests…
    Here in goonduland….everything is “not my money”.

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  • Not so fast:

    Philip should state where he got the numbers. Does the “total member’s balance” include the amount withdrawn to pay for housing (public and private)? If it does not then this could explain the “loss” of US$13b.

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  • patriot of Temesak:

    It is easier to ask the PM when he last slept with the Jinx in the same Bed

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  • pap selected INDIAN president:

    remember how departed pap evil lky lied about gic money temasick money NOT CPF money. then how all the way they lied until caught pants down by Mr Roy Ngerng. finally now everyone agrees gic money temasick money is CPF money.

    now we cannot speak for 70% sheep. we state categorically CPF money is our money. we are willing to go to pap court to fight this out if that pai ka pap Cb says CPF money is not our money.

    since pap has abused our CPF money without our permission the fair recourse is to be fairly, not the mousy cheating lying 2.5% and 4.0%.

    so Mr Phillip Ang by providing more and more information, is tightening the noose on pap liars. as soon as 70% sheep wakes up, and New Government forms, we shall ensure we are rightly compensated for loaning money, without our permission, to pap Ljs and pap Cbs.

    ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
    can pap be trusted? cannot. pap cannot be trusted. how to trust when inside is NOT within 200m? to to trust when an INDIAN is a malay?

    cannot. cannot trust pap. such liars. pap cannot be trusted. PERIOD.
    ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

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  • Tremendous:

    I ask you this. Don’t you think there should be a stronger sources to broadcast this message ? I suspect the reach for tre is not as high and so members of a certain party don’t bother with accountabilities. After all, what has TT done to earn the advisor and director role ?

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  • Ong PC:

    Sovereign wealth funds like GIC have a long-term focus. Year-on-year fluctuations are not as important as the returns GIC has consistently delivered on a 20-year horizon. If it is losing money now it can easily earn it back. And even if GIC has to realise losses it is very normal because without risk there will be no return. Furthermore, losses of a several billion are not consequential compared to GIC’s asset base of over $350 billion.

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  • oxygen:

    PART OF MY CPF HAVE LONG BEEN STOLEN FOR DECADES already except that no thief or thieves stepped forward to admit it.

    In retirement now, the anonymous thief or thieves still want to steal what is RESIDUAL miserable portion which belongs to me.

    I blame this on the 70% too stupid to even begin to discover they are stupid to impossibility.

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  • Life isnt fair:

    Scary isnt it?
    Covering it all up by making us pay more taxes n borrowing from us without permission..ie ourcpf.
    How despicable…yet gave themselves shamelessly humongous bonuses.
    Greed knows no bounds.truly!

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  • See. Pee. F:

    Not so fast:
    Philip should state where he got the numbers. Does the “total member’s balance” include the amount withdrawn to pay for housing (public and private)? If it does not then this could explain the “loss” of US$13b.

    Singaporeans are RULED BYBFEAR.

    THERE IS NO WAY THEY CAN CHANGE
    THE PIPED PIPER WILL LEAD THEM TO THEIR EGENTUAL EBD.

    SEEM PEE. FARK.

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  • Thingforothers:

    As what I use to say:

    “IT TAKES A THIEF TO CATCH THE THIEF”

    Simple as that!

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  • IB Ong:

    GIC stared in 1981, already 36 years, still lost US$13 billion!!!, even with injection of fresh CPF monies, retained interest and making zero return all those years.

    What 20-year horizon are you taking about?

    Normal for SWF or uniquely Singapore?

    Ong PC:
    Sovereign wealth funds like GIC have a long-term focus. Year-on-year fluctuations are not as important as the returns GIC has consistently delivered on a 20-year horizon. If it is losing money now it can easily earn it back. And even if GIC has to realise losses it is very normal because without risk there will be no return. Furthermore, losses of a several billion are not consequential compared to GIC’s asset base of over $350 billion.

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  • oxygen:

    @ Ong PC

    YOU PLAYING LIAR’S POKER with public naivety and gullibility again. GIC has consistently delivered on a 20 yr horizon? How come the PAPpys could only pay us 2.5% return on our CPF? The 30 yr bull market in bond is over with the onset of negative interest rate in 2016. And the credit market is unraveling. In good times they can’t return better than market average. Going forward, the Fed’s balance-sheet unwind spells trouble for equities.

    https://www.marketwatch.com/story/theres-overwhelming-evidence-that-the-us-stock-market-is-heading-for-disaster-2017-12-05

    Can they still deliver sub-par performance or sinking?

    Already, Singapore’s Sovereign-Wealth Fund Sees Lower Returns Ahead SINCE 2016 (as I pointed out of the point of inflexion in the bond market)

    https://www.wsj.com/articles/singapores-sovereign-wealth-fund-sees-lower-returns-ahead-1469656804

    @ Ong PC, you are lying or stupid?

    Ong PC: Sovereign wealth funds like GIC have a long-term focus. Year-on-year fluctuations are not as important as the returns GIC has consistently delivered on a 20-year horizon.

    and this nonsense?

    Ong PC: And even if GIC has to realise losses it is very normal because without risk there will be no return. Furthermore, losses of a several billion are not consequential compared to GIC’s asset base of over $350 billion.

    Your rationality of financial market behavior is dog swallowing its own vomit logic. When you lose your capital or trapped in ambulance stocks, how can your portfolio returns when market upturns except again sub-par return?

    GIC missed out on the bull-run in the commodities supercycle. Post GFC, it missed out on digital technology stocks. Instead it invested in losing banking stocks.

    GIC reduces stake in UBS, acquired during the Global Financial Crisis.

    http://www.gic.com.sg/newsroom?id=626&Itemid=159

    This comes from its own mouth confession – same as its warning in 2016 of lower returns forward.

    @ Ong PC, are you BOTH STUPID AND LYING at the same time?

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  • RDB:

    PAP upfront? They have only shown us their backsides ideals to fatten their incomes by any mean they can con through.

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  • Thingforothers:

    As what I use to say:

    “IT TAKES A THIEF TO CATCH A THIEF”

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  • Thingforothers:

    As what I mention in the previous email that

    “IT TAKES A THIEF TO CATCH A THIEF”

    AS SIMPLE AS THAT!

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  • Henry:

    CPF Life looks like a ponzi scheme.

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