Monday, November 17, 2008

2 town councils invested S$12m in Lehman-related structured products


SINGAPORE: Two out of 14 PAP-run town councils in Singapore have invested in Lehman-linked structured products.

Holland-Bukit Panjang and Pasir Ris-Punggol town councils have invested a total of S$12 million in DBS High Notes, Lehman Brothers' Minibond Notes and Merrill Lynch's Jubilee Series 3.

That's about 0.6 per cent of the total funds available for investments.

Senior Minister of State for National Development and Education Grace Fu gave this update in Parliament on Monday.

Town councils can invest up to 35 per cent of their sinking funds in corporate bonds and equities.

Based on the financial statements submitted to the National Development Ministry for 2007, Holland-Bukit Panjang Town Council invested about S$8 million or 6.7 per cent of its available funds while Pasir Ris-Punggol Town Council invested some 2.6 per cent totalling S$4 million.

Other town councils such as Aljunied, Ang Mo Kio-Yio Chu Kang, Hong Kah, Marine Parade, Tampines and Tanjong Pagar also have exposure to Lehman Brothers.

The fund managers appointed by these town councils invested S$4 million in Lehman Brothers through their investment portfolio.

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