Dear Mr Tan
I have been tracking news of Minbonds, Pinnacles and Jubilee Notes (MPJ) series actively. Some points I have observed and wished to highlight
1. Distributors with advisory roles distributing the MPJ series have recieved alot of flak for their sale, esp DBS Bank. I am not sure how much revenue these distributors are paid for each $1000 invested but a educated guess would be not more than 5-10%, Its pretty amazing how so much flak is diverted on them as opposed to the issuer (manufacturer) of these products. Lehman is insolvent now, yet, Morgan Stanley (Pinnacle issuer) and Merrill Lynch (Jubilee) have offices in Singapore and they have recieved less attention as opposed to DBS bank. As issuers of the notes, margains are definitely higher than distributors like DBS, yet I see Morgan Stanley/ Merrill Lynch relatively unscathed by all these. Surely there are no protests and investor wanting justice. I am not sure if some of the investors are even aware that Merrill Lynch/ Morgan Stanley are the issuers for them and not the local banks.
2. The main issue here are the bankrupty of the underlying asserts that causes the credit events leading to the default of the notes, I have gone through the prospectus and none of the underlying assert was mentioned. In fact alot of, esp less savvy investors, believed that the funds are invested in the 6/7 major reputable and not the underlying 150 firms. Since the underlying sercurities were not in the prospectus except that at point of printing all are rated double AA rating. If the distributors are not informed of this, is it fair to blame them wholly ?Further with a margain spread of 10-15%, does investor really expect the banks to pay them 100% of their investments? Can the banks then blame MAS as these MPJ investments were approved by MAS for sale.
3. My point here is to let lay the blame on the right parties who are primarily responsible for all these. Local Banks/distributors may have some smaller responsibilities but Morgan stanley and Merril lynch should rightly be held responsible for all misleading marketing info (since all marketing brochures pertaining to the product is issued by these 2 investment banks). Charges of continous issuance of series for pinnacle series continued despite the dismal performance of series 1/2 , yet the series were allowed to launch till series 15...
I hope you can post my comments as despite all the emtions about investments, I think we should be going after the parties who are PRIMARILY responsible for all these saga then the local distributors. In some ways, they may be victims as well since I believe noen of them knows abt the details of the investments as well.
- ► 2013 (315)
- ► 2012 (1270)
- ► 2011 (1873)
- ► 2010 (2369)
- ► 2009 (1655)
11/23 - 11/30
- Speaker's Corner 5 pm on 29 Nov - change of plan
- The Standard : Legco first on Lehman fizzles out
- To each his own
- The Online Citizen interview an investor
- Speaker's Corner 5 p.m. Sat 29 Nov
- 100,000 signatures so that more people will step f...
- Bonus is likely to remain low
- Lost the sense of bonding and togetherness
- An apology to Chee Soon Juan and his sister
- A sense of responsibility: Obama
- No reply from financial institution after four wee...
- End of Free Financial Advice
- Singapore Dance Theatre performs Nutcracker
- Suggestion: how to approach legal action
- Singapore Kopitiam Forum
- Swiss petition for national referendum to end "cor...
- Investors should see their Member of Parliament
- Why I wanted 100,000 signatures
- Buyer beware
- Singapore's investments in global banks
- Ask for information in writing
- Pinnacle Notes Series 9 and 10
- Experience with FIDREC
- Guide on FIDREC process
- Morgan Stanley website on Pinnacle Notes
- Risk analysis form - wrong statements
- Gathering 100,000 signatures
- Strategy on credit linked notes
- Low compensation offered by HLF
- Tan Kin Lian eyes elected presidency
- Issuers of toxic notes should take more of the bla...
- Plea to MAS - investors of Pinnacle Notes
- Manifesto - the future of Singapore
- Battle of the mind and the heart
- Reveal your identity
- Useful role for financial advisers
- Moral values and ethics
- Investors to see your Member of Parliament
- Speak up for our rights
- ▼ 11/23 - 11/30 (39)
- ► 2007 (1803)
- ► 2006 (696)
- ► 2005 (159)