Wednesday, October 15, 2008

Jubilee Series 3 LinkEarner Notes

At the request of an investor, I draft this letter for your use. You can sign and send it to the trustee. Please send it on your own, immediately. I am not organising a collective letter.


HSBC Trustee
(take the address or fax number from the letter that you received from them)


I am an investor in the above Notes. I was informed by the distributor that the redemption value of my investment is nil.

My particulars are:
Account reference:
Amount invested: $

I wish to ask you, as the trustee, to provide the following information to me within 14 days:

a) A full statement of account showing the money invested by all the investors into the Notes, the charges that are taken out of the fund (showing the amount, payee, purpose of payment), the investment of the fund (showing the amount invested and realised value, and loss incurred) and other relevant information.

b) Why were the investors not informed earlier about the intention of the arranger to liquidate the underlying assets? What is the provision of the trust deed relating to this matter?

c) Why were the assets liquidated at this time, when the prices are at rock bottom, due to the lack of liquidity? Was it possible to wait for a better time to liquidate the assets? Which were the parties that bought the assets? How were the prices of these assets determined? Which broker handled the transactions?

d) Please provide details of the underlying assets that led to a total loss of the principal invested in these Notes.

I wish to register my protest at the disposal of the underlying assets at this bad time, and want to be assured that, as the trustee, you have dischrage your fiduciary duty in looking after my interest in the disposal of the assets.

(name of investor,

cc Monetary Authority of Singapore


Anonymous said...

Thank you Mr. tan for yr efforts.
If all the notes holders (more than 360) writes, it may hv some impact. Hopefully the trustee would reply.

Anonymous said...

Dear Mr Tan,

Thank you for your selfless sacrifices! Do we write in separately or submit as a petition collectively? Please advise. Once agian...Thanks!


Anonymous said...

Dear Mr Tan,

Thank you for being our voice. I am in agreement with the 2 investors above in using petition by virtue of strength in numbers. Appreciate your efforts.

Anonymous said...

Mr Tan,

When you open a savings or FD account with a bank, do you ask such detailed questions eg. what is the bank going to do with my money, how much profit is the bank gonna make out of my money etc?? it seems that you have PERFECT vision on hindsight.

Anonymous said...

Hi Mr Tan,

What can we do as the assets liquidated have completed for ML Jubilee Series 3.

Do you think it will help if this letter send to trustee.

Please advise. Thanks

Anonymous said...

Dear Mr Tan,

I've already faxed the letter to HSBC Trustee and cc MAS at the respective fax#: 65324977 & 62299229.


Tan Kin Lian said...

Somebody asked if there is any point to send this letter, as the Jubilee Notes have already defaulted.

It is useful to get a full and detailed statement.

The statement will provide clues on whether the arranger and the trustee had discharged their fiduciary duty to the investors of the Notes.

Where there conflict of interest? Were the transactions and the prices done at fair values, and take into account the intrest of the investors?

If there are neglect of fiduciary duty, these parties can be asked to compensate the investors for their losses.

Let us get the information requested in the letter.

Anonymous said...

Please complete this online form if you wish to report a problem you have with your financial institution to MAS

Anonymous said...

Should all the victim that have bought the Merrill Lynch Jubilee Series 3 note engage a Lawyer, I know a number of lawyer willing to take up this case. The charge will depend how many people wish to take up. No one else except Mr. Tan is willing helping us here.

Please let me know if you all are keen.

Anonymous said...

Introducing Jubilee Series 3 LinkEarner Notes – an attractive investment idea that complements your investment portfolio. Credit-Linked to 5 world-renowned banks and offering semi-annual interest coupons with a total interest return of up to 41.75% (SGD Notes) or 54% (USD Notes) over a 7 year period. Available with a minimum investment of SGD 20,000 or USD 10,000.


Your investment will be secured with portfolio credit-linked notes (synthetic collateralized debt obligations), independently rated at least “AA” by Fitch or “AA” by Standard & Poor’s on or about the Fixing Date.

Anonymous said...

I am concerned about the lack of action or discussion about the Jubilee Notes that Merrill Lynch put together, allowed to default on the excuse that a single of the six highly regarded reference entities went broke, and left all investors with zero compensation.

Here we have a large Financial Institution that is still alive and sound, yet they seem to be getting away with doing everything wrong. They apparently sold off the instruments in question for next to nothing as there is no market at this time.

Yet, MAS seems to not even mention them, much less going after them. I would not be surprised, if the buyers of these instruments were able to sell them for good value to the US Government and pocket a handsome profit while we, the investors, get nothing.

Again, where is Singapore's regulation and supervision to ensure the good name of Singapore as a safe and well regulated Financial Hub is not placed in disrepute?


Anonymous said...

Mr Tan,
One of the headline in the brochure is "Sound Investment" followed by the 6 RE. Is this misleading? What is the meaning of Sound Investment? Justice needs to be done.

Anonymous said...

DO we still send this form if we were to go for the interview with the distributor according to the letter sent by MAS?
Spoke to the distributor who said not very collective effort from Jubilee 3 Notes investors, thus the lack of publicity.
Should we all send the form and attend the interview session to produce a greater impact?

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