A good investment approach is based on spreading your risk, diversifying your pOrtfolio. That is why mutual funds have blossome. Obviously, the government will be a lender of last resort, so there is that security. Additionally, what figures do we have to show that the portfolio was not diversified? The NIS did not go bankrupt when Clico collapsed so there was some diversification. The NIS was not the only institutional investor that suffered losses. Was it reckless? We need more info to address this question.
It was reckless, period!!! CLICO is one company...one company cannot be a diversified portfolio...
Was Clico the only company that NIS invested inIf so,,then you are correct it was reckless. How diversified was the NIS portfolio?
NIS invests largely in T-Bills and then Clico. I am not saying don't seek higher returns, but not a single company. They need to look at the Singapore model of using social security funds for industrial development. Lee Kwan Yew mastered this policy and made it into an art form.
So there was some spreading if risk. Was there no regulation in place regarding what percentage of assets could be invested in one vehicle? Somewhere, I heard about a limit. The Singapore experience was a good one but I am unsure whether the same could have worked for Guyana. The population base is small therefore economies of scale. If we are talking industrial development for the export market, this is more risky with a period of no or very low ROI in the short term. Many people invest in mutual funds and like vehicles thinking that they will be sheltered in a downturn. Obviously, this does not apply to this case because the investors were seeking the higher return. I still think that we need to know what percentage of assets was invested in Clico.
It is not about the caps or that the individual exceeding them should be sanctioned but the fact that individual, Geeta Singh was rewarded with a spot on GUYSUCO board and she is also on the Berbice river board where by the way they again covered up for her by making NIS absorb her debt (by financial slight of hand) at CLICO. This is PPP corruption to which most of those prattling about APNU corruption ( fictive at the moment) never commented on.
Do you have any evidence as to corruption, please specify and also advise the PNC, they need help. APNU corruption, well they are just over 3 months in office and their colors are showing up very bright.