Did our Sovereign Debt Fund lose money?

"Anonymous said... According to a Straits Times' report in July last year:

"Volatile stock markets took their toll on Singapore investment firm Temasek Holdings' portfolio value which shrank for the first time since the global financial crisis.

Its net portfolio value fell to S$242 billion for the financial year ended March 31, down from S$266 billion a year ago....

As last year's losses amounted to 9.02% of total of $266 billiion (prior to 2010 it was more than $300 billion), that means Temasek Holdings has lost $25 billion of taxpayers' money and CPF members' savings in 2017.

What about from April 2017 to March 2018? There is still no official report published. Speculation put the losses to be the worst in the history of Sovereign Wealth Funds Investments."

How much did our Sovereign Debt Fund, SDF, lost? This is the big question that everyone is asking and speculating.  My answer is very simple.  The SDF did not lose a single cent. You may think that because they refused to disclose any numbers so they can write their own books and can thus say they did not lose a cent. And on record they have been announcing billions of dollars of profits and paying themselves crazy with big bonuses. I could still remember the year they announced a 15% profit and all stuffed their pockets full with special bonuses.

But they did not lose or could not lose. If they lose, they would top up the losses with more taxes. Look at the humongous taxes they are raising since last year. And for them to put on a brave front and a blank face to take the people's life savings in the CPF, coffin money, you know how desperate they are. CPF is for retirement not for all kinds of compulsory schemes to buy insurance without the people's consent.

The SDF did not lose any money. Only the people lose money. The people have to top up by paying more taxes. It is heads I win tail you lose. When they made some profits, they rewarded themselves handsomely with big bonuses and went around boasting how clever they were. When they lost money, they still rewarded themselves with million dollar salaries but kept quiet. Then the losses would still have to be topped up, not by returning the big bonuses or big pay, but by the people paying more taxes, when money not enough.

Just ask one simple question. Why so many silly taxes over the last few months? To encourage people to walk to be healthy, they may want to introduce bicycle tax and taxes for taking buses and trains so that people would have to walk more. They don't even mind looking silly and talking silly and be laughed at for their silliness. Die die must tax the people to bring in more money, because somewhere, something is very wrong, when money is not enough.

The end result, the people will be made money not enough, money in their CPF also not enough.


Virgo49 said...

One time in Genting Old Town Cafe, a Nepalese cashier asked joking:"Uncle, to a Malay fine gentleman, ten cts change you want back or not"

The Malay gentleman answered: "Want, I want, Najib already gasak billions, I want my ten cents back"

Now Sinkieland hawker centre chai png stall owner: "Uncle, five cents change you want back or not"

Uncle: "Want, Sovereign Funds already lost billions, I want my five cents back"

Anonymous said...

You are right RB. What they lose are other people's money. Not their own.

The most cruel, inhuman and unconscionable thing is it is other people's blood and sweat retirement money and coffin money.

And the ridiculous part is when they make lots of money it is theirs to keep while their top guns get fat bonuses and citizens hear only the good stuff. When they lost money, it is citizens who will suffer more taxes. This kind of business I think my grandmother can do and would like to do. Not to say my grandmother, even the new 'orang-utan mascot' at the zoo can do.

Virgo49 said...

Anon 9.57

Hear what's good stuff. Don't even share the Good stuffs but cheated you even on your capitals outlays for them to punt to their heart's content.

For donkey years just return you 2.5% whilst they gasak your 6 to 7% dividends.

Surplus for their own pockets.

Hokkien saying: Soo, soo yours, Win, all mine.

Anonymous said...

Absolute power corrupts absolutely.

Sayings like these are never wrong.

I do not believe in exceptions.

Exceptions only starts at the beginning.

As time goes by, human's greedy nature takes over.

Accountability and transparency all go out of the window.

There is little to proof.

The facts speak for themselves.

We are living the reality!

Anonymous said...

In the past, we read that although there existed a Singapore Treasurys market, the S'pore govt actually do not have to borrow money because of its very healthy financials, and the Treasurys market existed for other purpose.

Recently, we are perturbed to hear for first time from PAP Minister that the govt has to borrow money for projects.

Anonymous said...

As the population ages and more people able to withdraw their savings from the CPF, the custodians of the CPF would feel pressure from funds redemption.

They would have to liquidate assets invested by the sovereign wealth fund (SWF) to raise funds to meet the increased redemption.

If they don't or can't do it for any reason, they would have to (1) raise the withdrawal age to defer redemption (eg raise retirement age to 67? 70? 75?), or/and (2) hike taxes (up GST? impose GST on online purchases? up all sorts of levies? create carbon tax, sugar tax?, up water prices? etc ) to raise funds to meet the increased redemption.

Anonymous said...


As of 31st March 2017, TH fund size is SGD275B.

Their annual report only comes out in July. Wait next month for the latest figures.

Remember that most of TH funds are in companies, both private & publicly traded on stock exchanges.

So will go up & down. More important is whether performance is good enough, since the staff of TH should be getting among the highest salaries in the world.

From 31/3/2008 to 31/3/2009, TH fund dropped from SGD185B to SGD130B due to GFC.
From 31/3/2015 to 31/3/2016, TH fund dropped from SGD266B to SGD242B due to collapse of oil & commodities.

Good comparison will be against Warren Buffett's Berkshire shares (more volatile but better long-term returns), and also against Norway's SWF which is the largest SWF and is very transparent & has good performance results over the years.

The most important question is .... Even if the bestest results in the world ... So what?!? Can Sinkies enjoy the fruits of their contributions & taxes??

Or is it going to be "give you a drumstick, but demand 2 whole chickens back"??

Anonymous said...

Besides the aged withdrawing monthly, those foreigners who left for good have taken out all they have in their CPF.

On top of that, younger members are practically emptying their monthly CPF contributions to service their housing loans. These are unlike the older generation, whose housing loans are much smaller because flats were cheaper, and monthly loan payments much less and they are therefore able to keep more of their CPF intact, albeit still untouchable for some.

If contributions cannot keep up with withdrawals, which is obviously the problem now, more taxes are needed. Or else they have to think of other ways like floating the idea that CPF should not be used for housing. Unlikely as it will affect HDB prices, but desperate situations require desperate measures. Never say never.

Anonymous said...

Someone said a report from New York Times or Wall Street Journal claimed that last year Temasek Holdings lost 61.1 billion dollars and GIC lost 42 billions. Is it true ? How to verify? Those responsible for running the two companies are keeping dead silent. The two sovereign fund companies should be honest and transparent and disclose the financial stature openly at the end of each financial year. Please don't again give the excuse that for security they will not disclose the reserves. All other foreign governments sovereign funds do. Why is Singapore so special?

Anonymous said...

By claiming security reasons they can do many things without having to account to anybody.

Things like ISA, detention without trial, prohibition of protest and unlawful assembly, out of bounds discussion of sensitive issues like race, language and religion and of course disclosing the true status of the sovereign funds.

One size fits all and you can do nothing about it.

Anonymous said...

If not for HuliJinx, Tummysick funds maybe $500bln or more. Losing n anyhow bet without proper skills n qualifications definitely is not meritocracy. Selfish Old Man, a great deception actor, got DoneNarBarLan to appoint the worst qualified FoxJinx on a trackrecord of zero global mkt experience n big loss in ....polis to head tummysick. The rest is a history of "chek ark", paying themselves millions n millions n losing billions, hundreds of millions here n there of sillyzrns blood sweat n tears coffin money. Like NapJeep no good end will come to such people. Now may dwell in great comfort n luxury but the evil done will come back n judgment will come. There is no escape unless repent n make restitution. Chek Ark deeds are not something to dismiss.

Anonymous said...

NapJeep Rosiman is cheaper to keep: one burkin bag is only $50000.
Loongie Hojinxman one loss is easily $50000000.
You tell me?
Matland had a better deal.

Anonymous said...

World stock markets were on the greatest bull market since 1970s. Average return is 7% to 10% a year in past 40 yrs. This should be the benchmark for fund managers to measured against for comparison. And if you are paid millions than you better out-perform the benchmark.

Anonymous said...

How to lose money on paper? Inherited so much sinkie assets at historical levels. Anytime revalued n sell some local assets can always patched up for buy high, sell low overseas losses neh. Can always have the cake n eat it. Even with super chew cheng no problem leh. Posb sold to dbs a song song sung sing.

Anonymous said...

How much is Ho Ching paid?

Sg Iron Woman said...

(A token) $1?

Anonymous said...

$1 multiply by X. And multiply again by Y, then multiply by Z. And add A, B, C and D. Then multiply by E.
Does that answer you question?

Anonymous said...

Cannot ask how much she is paid. This is also for national security reasons!