Singapore legislation
Section 15
Section 15
Investment
(1)
Despite section 7(3) of the Financial Procedure Act 1966, moneys standing to the credit of the Fund which are, in the opinion of the Board, moneys that are not for the time being required for the purpose of making payments out of the Fund under this Act and the INVEST Plan or the Scheme may, so far as is practicable, be invested by the Board in such stocks, funds, securities and investments as the Board thinks fit (but not any stock, bond or security issued by the Government) and in any manner, but the Board must manage the Fund so that moneys that are from time to time required to pay benefits that are payable out of the Fund are available for that purpose.
(2)
The Board may invest moneys standing to the credit of the Fund that are available for investment through an investment manager or managers who undertake to invest, and manage the investment of those moneys on behalf of the Board.
(3)
If any investment manager is engaged by the Board under subsection (2), the Board must ensure that the investment manager —
operates within the investment powers of the Board and the investment strategy and policy as determined for the time being by the Board; and
reports to the Board on the state of its investments and the investment market at the times and in the manner as the Board determines.
(4)
In this section —
Definition
“derivatives contract” has the meaning given by section 2(1) of the Securities and Futures Act 2001;
Definition
“effective management”, for an investment portfolio, includes —
the efficient exposure of the portfolio to certain assets or classes of assets;
the diversification of investments within the portfolio;
the reduction of costs relating to the portfolio; or
the enhancement of the value of, or the returns on, the portfolio;
Definition
“investments” means —
the acquisition of assets, or interests in assets, with the expectation of obtaining returns (whether in the form of capital or income) on such assets or interests; or
the use of financial products (including, without limitation, any derivatives contract) or the entering into financial arrangements for the purposes of effective management of an investment portfolio.