Private Investment Funds earn their keeps by offering their expertise to the super rich. They named a price and the private investors would decide who to park their money with. If the Funds could not perform, the investors would pull out and look for better performance Funds to invest their money. There is fierce competition for customers in terms of returns on investment and cost of investment.
Sovereign Wealth Funds are a totally different kettle of fish. They acquired funds by involuntary means, mostly nation's reserves or citizens' savings to invest. It is like, here is the money, go and do what you like with it. They, the fund managers, decide who would be the fund managers, how much to pay themselves.
The investors are passive, ie country's reserves plus CPF money in Singapore's case. Actually all the money belongs to the people one way or another. The glaring difference in SWF and PIF is that in the former, the owners of the fund did not have a say in anything. The owners cannot appoint who to be the fund managers, who should be hired or fired if not performing. They cannot decide how much to pay or reward the fund managers or to reduce their pay for bad performance. They cannot fire the fund managers. They are totally not involved, not informed, kept in the dark. And in Singapore's case, they did not know how much of their money are invested in the funds and did not know how much the funds made or lost. They are told by the fund managers what the fund managers wanted them to know and have to take them at good faith.
Another glaring fact of SWF is that many of the owners of the funds are barely able to pay for their medical bills as their savings are stuck and subject to the rules of their savings fund. In other words many of the owners are poor people or relatively poor.
On the other hand the fund managers are completely independent of the owners of the funds and are free to do whatever they want with the funds, how much to pay and reward themselves. Thus, the fund managers are extremely rich and comfortable and could party all the time, like Napoleon and his 2 legs are good, 4 legs are better friends in the Animal Farm.
Life is like having a ball for the fund managers in SWF. The fund managers are rich but the owners are poor. The owners of the money cannot sack them or move out their money. Where got such favourable employment terms on earth? Now you know why the owners are getting poorer and the fund managers, the self appointed employees, are laughing all the way to the banks. When they lose, it is OPM. Anyone to check and verify the accounts, whether it is profit or loss?
Where is the accountability? The owners of the money just have to trust them and what they say. How much of the profits, if any, goes to the fund managers? How much goes to the owners of the money?
Sovereign Wealth Funds are actually corruption in a massive scale at the national level. Whether it violates the laws, we lay people do not know. But all the legal professionals are keeping quiet. So we presume that such nationally managed funds/schemes are not illegal.
ReplyDeleteHowever, I believe it violates the Constitution in one way or the other.
Sovereign means u can't touch it or given have it. So SWF is juz like tat. But a ang moh few days ago kena charge in court for not wearing mask as he said he was sovereign, woah, can't touch him u know, the judge asked him go see the psychologist and be charged later. So the owner's fund made sovereign is like untouchables and should have open up for owners to see but sadly here the owners got no rite at all due to 61% already given away their rites to the whites men, therefore forever can't even touch or smell it, only way is the dafts wakes up & de throne the white men votes then only got some hope, else it's all tan ku ku.
ReplyDeleteSame modus operandi as per TT Durai NKF fame. 90% of donations/profits go to the Company and only 10% of donations/profits go to the legal rightful beneficiaries.
ReplyDeleteThot we got opposition MPs to ask such questions ?
ReplyDeleteHow are the foreigner managers of our CPF money compensated ?
ReplyDelete"Hatchet Man" implies criminal man, working against the law, like a mafia gangster.
ReplyDelete"Hatchet you" means kill, assassinate or murder you.
So the whole thing you said is about criminals carrying out their crimes.
Heheheheh, we managed your money without your permission, don't have to tell you anything. Tell you only what we want to tell you and you lan lan don't know what we told you is truth or lies. You can only keep guessing but would not have any clue.
ReplyDeleteWe only tell you we are making a lot of money. You can only wonder if we are telling the truth or lying to you. We may be making losses but told you we are making money and then pay ourselves more bonuses and increase our salary some more.
You know how many billions we are paying ourselves every year with your money?
How many years have we been paying ourselves with your money?
Heheheheheh.
We have the best jobs in the whole wide world. Playing and gambling with your money. Win we pay ourselves. Lose, we lose your money.
Everyday frightening the oldies with unvaccinated seniors in ICU or death.
ReplyDeleteHow many vaccinated in ICU or dead not disclosing. People died after vaccination claimed not related to vaccines.
Still refused to use Chinese vaccines, still playing politics and monkeys.
Aiya CPF is not unit trust. CPF is like company pension fund. You dont decide where your pension fund invest.
ReplyDeleteBasically, since 2004, after the Lizard took over, Singaporeans have been fcuked left, right, centre and behind.
ReplyDeleteThis Lizard not only sucked your money but also brought shame to the country.
Unable to select the right type of leaders to help him build up the country. Only surrounding himself with useless balls-carriers and running dogs.
Possibly also kena black mails or black magic until lost control of the country.
No direction given. Only goes round in circles.
Singapore is definitely on the decline now. Once day, soon, very soon, it will implode and go down the drain.....
CPF is not a pension fund, not meant to be. It is the people's life savings to be used for retirement.
ReplyDeleteThe fun part, or the fund part, is when they took it out to put into the sovereign funds to invest without the permission of the CPF owners. Then again they said they did not take from the CPF. They took from the government that took from the CPF that they called it the country's reserve. How did the people's life savings become the country's reserve? No the people's money but country's money?
That's why it's called Con People For fun (fund) lah, suka suka change scheme to suck more monies into someboli account, lose u pay win they keep, what a wonderful scheme for them ho boh.
ReplyDeleteWhere's the logic? If CPF is a retirement fund not a pension fund, then the people should get back exactly what they put in. Why should they get extra 2.5%? Also what should happen to the money in the fund until retirement? Who decide? If the people vote on where the money goes (many people are lousy investors anyway), and the fund loses the money for whatever, who should compensate the people who didn't vote for where the money goes? Ridiculous.
ReplyDeleteHow many people lost money on CPF?
You PAP? Sounds like one.
ReplyDeleteNever voted for them in my life. How about you answer a few of my questions, or at least think about it (if it isn't too taxing)
ReplyDeleteWhy don't you compare CPF with Norway SWF (the world's biggest and best run) and see what features you want from them to be included with CPF. I think no need to compare with CIC (China Investment Corp), right?. They are even less transparent, and maybe even put you in re-education camp if you dare to question them.
"The fund managers are rich but the owners are poor. "
ReplyDeleteIf the fund manager poor, who will trust him. ? ๐๐๐
The fund managers were poor but given so much money to play with, they grow very fat.
ReplyDeleteWhere on earth got such a wonderful deal? Given billions of dollars to gamble, oops, to invest. Then you decide how much to pay yourself first. Then when make money you reward yourself more with bonuses, telling the world how clever you are.
Then when lose money keep quiet and continue to collect big fat pay. No pay cut.
Then wait for another round of big gains, don't care how the big gains come about. True or not no body knows. Just report big big gains even if no one believe you. Just buat bodoh and pay yourself big and bigger bonuses.
Too good to be true. But again it is true for these fund managers. Don't grow fat also cannot.
Poor owners, all can see but cannot touch and getting poorer and poorer.
I trust Redbean. Why don't we all come out $5000 each person and let Redbean manage for us like the fund manager. He will charge small fee and invest for us. We can show the garment that we no need to pay large amounts to the fund manager just to manage CPF. Even small amount can work if they are sincere. Ok, those who cannot afford $5000 can put smaller amount say $1k-3k. Then this become just like CPF because different people got different amount in CPF anyway. I am almost 1000% sure Redbean can get more than 2.5% which the CPF give us anyway, but we cannot take out til we are 55. Redbean will allow us to take out every year.
ReplyDeleteWho will join me? Of course Redbean must agree first lah otherwise won't work.
Investing in funds in a pool for small investors is like giving money to fund mangers to gamble, but they promise you only a certain small percentage of whatever they make from gambling, keeping the rest for themselves like paying astronomical salaries also known as own self pay own self. Now that is provided they make money.
ReplyDeleteIf they lose money, it is you who will foot the losses. They do not have to compensate you for your losses, even if your pants got totally burnt to ashes.
Haha, can try. I don't charge like fund managers. Just the normal trade commission will do.
ReplyDeleteNot long ago many oldies were conned by banks investing in 'Capital Protection Funds' that basically does anything but protect investor's capital. The only protection is the cream off imposed annually by the fund managers, eating into the investors capital. In the end lots of unhappiness for oldies when they get less that what they put in.
ReplyDeleteThe other type of fund to be careful about are those touting 'potential returns' of this and that, which basically means nothing. In the end the real potential benefits accrue to the fund
itself and the fund managers get big bonuses to boot. If you are lucky you get what is advertised. Often than not, the potential is never reached, and less than what they touted.
No wonder the saying, the house always win.
ReplyDeleteAnon 6.27 . Don't kiasu so much. This is not conning. REdbean didn't come up with the idea. I came up with the idea. He didn't even know about it. You don't have to invest unless you are comfortable.
ReplyDeleteMy proposal. CPF give 2.5%, Redbean will give 5%, I think this he can guarantee. This is reasonable and not so high. Last time FD also give 4-5%, and that is just put in the bank without investing. If you allow him to invest, sure can get more. But we are not greedy, just 5% enough No need for all those fund manager 3 year, 5 year historical return 15%, 17%, 23% lah and show bullshit graphs with long story, then at the end they say in big words "Past Performance is no guarantee of future returns". Lan tui. Redbean, he will start from fresh so don't have any historical graphs. Just flat 5% return. Take it or leave it. Any extra profit he gets, we just divide equally between him and us. I think that's fair. Oh, plus we pay him the commission.
For security, we can also put two or three of the regulars as board members as a sort of check on him to make sure he don't anyhow invest or run away with our money (I am not familiar with all the regulars, but I see some constant names) Redbean, how? I know it will take some time to work out the actual details. Workable?
Hi Anon 7.33
ReplyDeleteNo, no, my point has nothing to undermine RB's ability, nor pour cold water over your suggestion. It was an honest opinion of why investors, small ones, are always at the wrong end of the bargain in entrusting their hard earned money to be gambled on their behalf and not getting reasonable benefits but taking all the risk. In this case the 'benefits certainly does not outweigh the risk.
Anon 6.27
The Mastermind of all the ills suffered and suffering by Singaporeans has finally shown his tail. Do you know who?
ReplyDeleteThe Straits Times. Making us suffer for over 150 years and continuing.
ReplyDeleteGIC is regenerating itself and pivoting for the future
ReplyDeleteTHIS year marks the 40th anniversary of GIC. We highlight the milestones of our progress as an investment management company and the people and events behind these accomplishments.
Yeah, time for celebration. So much money to spend. Splash on the fund managers with a big party and bigger bonuses.
ReplyDeleteBut must report another big profit to justify that like before. If can report another 20 per cent profit, can pay each one 2 years of bonuses.
OPM is such a nice thing to have and to play with.
ReplyDelete