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22-05-2014, 01:10 PM
An honorable member of the Coffee Shop Has Just Posted the Following:
1) So what has been actual historical returns over the years for the CPF sums invested.
2) What is % of the actual return is kept by the Govt (lets call it management fees and expenses)
3) Why the lack of transparency in showing these to the general public.
The 2.5% is not the actual return but the outcome of a formula and forms part of the actual return. How small or big is the 2.5% of the actual return.
Background. The CPF Board is only allowed to buy government non-marketable bonds called "Special Singapore Government Securities" to meet their investment needs. Note the interesting phrasing - "The investment of CPF funds by the Government relieves the CPF Board from taking on the investment risk of a fund manager to concentrate on its primary role as a national social security institute".
MAS handles the bonds and parcels the proceeds into its own investment vehicle, GIC and Temasek. The proportion and actuals sums invested in these vehicles have never been disclosed. Typically it will have to be a mix based on risk appetite. The actual returns from these investments have also not been disclosed.
The Government does provide a guarantee and for that a guarantee fee out of the returns would be acceptable even if most Govt would take it part of their fiduciary duty and part of their social responsibility to its people.
The Govt needs to disclose the historical returns in order to ensure that CPF account holders are actually getting the bull of the returns and that wanton profiteering is not happening.
And why the secrecy on the actual returns.
Click here to view the whole thread at www.sammyboy.com (http://sammyboy.com/showthread.php?182129-The-CPF-Mystery-that-has-befuddled-the-Nation&goto=newpost).
1) So what has been actual historical returns over the years for the CPF sums invested.
2) What is % of the actual return is kept by the Govt (lets call it management fees and expenses)
3) Why the lack of transparency in showing these to the general public.
The 2.5% is not the actual return but the outcome of a formula and forms part of the actual return. How small or big is the 2.5% of the actual return.
Background. The CPF Board is only allowed to buy government non-marketable bonds called "Special Singapore Government Securities" to meet their investment needs. Note the interesting phrasing - "The investment of CPF funds by the Government relieves the CPF Board from taking on the investment risk of a fund manager to concentrate on its primary role as a national social security institute".
MAS handles the bonds and parcels the proceeds into its own investment vehicle, GIC and Temasek. The proportion and actuals sums invested in these vehicles have never been disclosed. Typically it will have to be a mix based on risk appetite. The actual returns from these investments have also not been disclosed.
The Government does provide a guarantee and for that a guarantee fee out of the returns would be acceptable even if most Govt would take it part of their fiduciary duty and part of their social responsibility to its people.
The Govt needs to disclose the historical returns in order to ensure that CPF account holders are actually getting the bull of the returns and that wanton profiteering is not happening.
And why the secrecy on the actual returns.
Click here to view the whole thread at www.sammyboy.com (http://sammyboy.com/showthread.php?182129-The-CPF-Mystery-that-has-befuddled-the-Nation&goto=newpost).