Fund managers disclose their expense ratio or management fees to stakeholders.
However, CPF fund manager GIC has been concealing this for decades. Based on PAP’s help-yourself-to-maximum-tax/CPF-dollars policy for PAP elites, managing at least $338 billion in CPF funds must be a lucrative business.
Just how much are GIC managers, including external ones, paid?
Assuming GIC earns 1% of AUM of $338 billion, it would have been paid about $3.38 billion in management fees. This is almost double MEWR’s expenditure of $1.8 billion, more than $1.4 billion of MCCY’s or exceeding MSD’s by $900 million in FY2016.
A much lower figure may have possibly been disclosed by MAS in its annual report (table below). As can be seen, “interest earnings from investments” has always exceeded “interest credited to members” by a few hundred million dollars annually.
Is this GIC’s management fees? The government should clarify.
Last year, GIC/government pocketed $776 million from CPF returns on investments.
At this rate of increase, GIC/government will be ‘earning’ more then $1 billion from CPF members’ returns by December 2018. 😦
It would be fine for GIC to earn what it deserves but certainly not when CPF members are paid an average of 3.5% returns for the last 25 years.
The government should clarify with more transparency and cease concealing material information from CPF members.
Were hundreds of millions/billions of dollars paid to GIC in management fees from CPF investment returns?