TANJONG Pagar town council said yesterday that it did not buy any Lehman Brother bonds directly but that one of its fund managers, Lion Global Invest, bought $250,000 of Lehman bonds.
This translates to 0.14 per cent of the council's $179 million sinking fund.
The disclosure comes after Parliament heard on Tuesday that Holland-Bukit Panjang and Pasir Ris-Punggol town councils invested a total of $12 million in DBS High Notes, Lehman Brothers Minibond Notes and Merrill Lynch's Jubilee Series 3.
Six other councils, including Tanjong Pagar, reportedly invested a total of $4 million in Lehman Brothers via portfolios.
Tanjong Pagar town council said yesterday that it is in a strong financial position and takes a prudent approach with council funds. Some 22 per cent of its sinking fund is handled by fund managers, but the bulk of its investments are in fixed deposits and government and statutory board bonds.
Its fund managers were given a mandate to invest over a three-year period, and funds are regularly reviewed by the town council, though the portfolio mix is left to the fund managers' discretion, the town council said.
0 comments
Post a Comment