Town councils' sinking funds are wisely invested over a spread of investments. This is called portfolio management. For those of you who do not know what it means, you should simply STFU and leave finance matters to the professionals.
The closest you morons know about finance is buying 4D and Toto.:oIo:
Town councils' sinking funds not mismanaged, says Teo Ho PinBy Dominique Loh, Channel NewsAsia | Posted: 26 November 2008 1928 hrs
SINGAPORE : The coordinating chairman of PAP town councils, Teo Ho Pin, has clarified that PAP town councils have not mismanaged public funds. He also stressed that PAP town councils are financially secure.
In a statement to the media on Wednesday, he said town councils have been prudent because they understand their responsibility to residents.
His comments came after it was revealed in Parliament that funds from eight PAP town councils were exposed to failed Lehman Brothers financial products. Those invested funds total some S$16 million.
Dr Teo said over the last six years, town council investments yielded an average 3 per cent rate of return annually.
Over the last two decades, 14 PAP town councils have accumulated about S$2 billion in sinking funds. That works out to about S$200,000 per HDB block in Singapore. There are about 9,000 HDB blocks in Singapore.
Sinking funds are accumulated surpluses meant for long-term use. Investments are made using the sinking funds, not with short-term operating funds from service and conservancy charges.
The way a town council invests is determined by guidelines set by the National Development Ministry.
Dr Teo said conservative investments may not generate sufficient returns that will overcome inflation. Therefore, town councils take a prudent stand by spreading their investments over a mix of financial products.
He said town councils are financially secure. That is why estate maintenance and improvement plans will not be affected.
Sinking funds are also used to pay for long-term works such as lift replacements, maintenance, and co-paying for lift upgrading.
Residents can access a town council's financial statements through its annual reports. - CNA /ls
The closest you morons know about finance is buying 4D and Toto.:oIo:
Town councils' sinking funds not mismanaged, says Teo Ho PinBy Dominique Loh, Channel NewsAsia | Posted: 26 November 2008 1928 hrs
SINGAPORE : The coordinating chairman of PAP town councils, Teo Ho Pin, has clarified that PAP town councils have not mismanaged public funds. He also stressed that PAP town councils are financially secure.
In a statement to the media on Wednesday, he said town councils have been prudent because they understand their responsibility to residents.
His comments came after it was revealed in Parliament that funds from eight PAP town councils were exposed to failed Lehman Brothers financial products. Those invested funds total some S$16 million.
Dr Teo said over the last six years, town council investments yielded an average 3 per cent rate of return annually.
Over the last two decades, 14 PAP town councils have accumulated about S$2 billion in sinking funds. That works out to about S$200,000 per HDB block in Singapore. There are about 9,000 HDB blocks in Singapore.
Sinking funds are accumulated surpluses meant for long-term use. Investments are made using the sinking funds, not with short-term operating funds from service and conservancy charges.
The way a town council invests is determined by guidelines set by the National Development Ministry.
Dr Teo said conservative investments may not generate sufficient returns that will overcome inflation. Therefore, town councils take a prudent stand by spreading their investments over a mix of financial products.
He said town councils are financially secure. That is why estate maintenance and improvement plans will not be affected.
Sinking funds are also used to pay for long-term works such as lift replacements, maintenance, and co-paying for lift upgrading.
Residents can access a town council's financial statements through its annual reports. - CNA /ls
