A $10 million goodwill gesture by UOB? I don't think so!

From the Today paper yesterday

A $10 million goodwill gesture by UOB?
05:55 AM Oct 21, 2009
by Conrad Raj

SINGAPORE - As a gesture of goodwill to more than 4,000 customers, United Overseas Bank (UOB) has made a one-time offer to redeem the units of two funds it sold in 2005 - PruYield 15 and PruYield 20 - owned and managed by Prudential Asset Management (Singapore). The offer guarantees that customers, who had invested about $150 million in the two funds, get back their initial offer price less the annual payouts received to date.

The bank has written to customers, who bought the funds, offering 88 cents per unit for the PruYield 15 fund and US$0.82 per unit for the PruYield 20 Fund. If, however, the prevailing net asset value of the funds is higher on the applicable dealing day, the customer will get the higher price.

Explaining the move, UOB's executive vice president & head of personal financial services, Mr Eddie Khoo, said: "The performance of the funds has been impacted by the global financial crisis and some of our customers have expressed concerns about the impact of market volatility and economic uncertainty on their investments. Whilst we cannot do anything about market volatility and economic uncertainty, we can help to allay our customers' concerns by going the extra mile and giving them an element of certainty."

It is understood that UOB will not hold on to the funds, but sell them immediately, so it will not make any money on this exercise. In fact, UOB could be out of pocket by as much as $10 million based on prevailing net asset values and the number of customers likely to take up the offer.

The offer, which ends on November 6, is open to those who bought either fund directly from UOB and was holding on to the funds as at Oct 16.

As at Oct 16, the price of PruYield 15, comprising more than 95 per cent of the two funds sold, was 81.5 cents while PruYield 20 was US$0.842. With the interest paid so far, most investors would be able to recoup their original investment from the UOB offer. However, if PruYield 15 customers hold on to their funds till maturity in June next year, they could recoup their original $1 per unit plus 15 cents in total payouts.

Others who sold these two funds include HSBC, Maybank, Hong Leong Finance and Prudential itself. Most have yet to say if they would follow suit,

Said Maybank: "The investment has a current market value at the moment and the investment is due to mature in about eight months time. Customers may wish to decide to hold till maturity or redeem at any point in time. We will leave the options open for our customers."

A spokesman of HSBC, one of the biggest sellers of the PruYield funds, said, "We have been monitoring the situation very closely and keeping customers informed with regular updates on the funds' performance in particular the NAV which have been steadily improving. We will continue to do so including consideration of the appropriateness of a redemption offer which we will advise to customers in due course."

URL http://www.todayonline.com/Business/EDC091021-0000075/A-$10-million-goodwill-gesture-by-UOB
Copyright 2009 MediaCorp Pte Ltd | All Rights Reserved

I would like to know, why are these 2 funds chosen? From the article, I quote UOB's executive vice president & head of personal financial services, Mr Eddie Khoo,

"The performance of the funds has been impacted by the global financial crisis and some of our customers have expressed concerns about the impact of market volatility and economic uncertainty on their investments. Whilst we cannot do anything about market volatility and economic uncertainty, we can help to allay our customers' concerns by going the extra mile and giving them an element of certainty."

Sounds nice and all, but it still doesn't explain why these 2 funds are chosen.

Is Prudential in any financial trouble, in risk of foreclosure? I doubt so.

Are the funds performing any worse than the other funds under UOB asset management? I don't think so.

Are the funds exposing the customers to excessive risks? Not at all.

I can easily pick many others whereby customer's are making a bigger loss than these two funds, many which may be unsuitably recommended for a certain customer's risk profile. (China/India, BRIC, Resources fund just to name a few)

The 2 funds chosen are both capital protected funds, with PruYield15 maturing NEXT YEAR with a protected price of $1 whereby UOB is only offering $0.88 (which btw is only $0.07 more than the offer price as at 16 Oct). Honestly, unless I'm in urgent need of money right now, why do I not want to hold on my money for another 8 months and get another 12% more return ($1 in Jun2010 vs - $0.88 from UOB = $0.12 = 12%)? Where else can I park my money if I redeem the fund which can offer me a guranteed 12% return??

For the PruYield20 Fund, price as of 16 Oct is US$0.842, yet UOB is offering US$0.82 and thats suppose to attract me why? If I sell the fund off in the open market, I can potentially still make a profit!

I'm not sure how I can put this across in a nice way, but I think this is bullshit. UOB is not showing sincerity that they are really offering any goodwill at all. Though they might have set aside $10 milion to provide for this provision, I would be interested to know what proportion of this money will be spent at all at the end of the offer, given that any rational investors would probably think like I do and not take up this ridiculous offer.

Is this a cheap publicity stunt by UOB now that they have become the smallest local bank and trying to retain/buy customer's confidence?

I'm not convinced, not by a long shot.

When was the last time you visited a wet market?

Amid all the hoo-ha over the possible closure of wet markets, am I the only one that is under no illusions that over time, they will eventually have to make way?

I'm not sure if this is the best time, or if there ever is a best time to close down the wet markets, but lets face it, how often do you really frequent the wet market? Not in the last 10 years for me that's for sure. Of course, my mother and alot of housewives still do, but even then they are not doing 100% of their marketing there anymore. (at least for my family) Its a mixture of NTUC, Seng Song, even Cold Storage (its fruits taste better, although more expensive according to my mum) and the occasional wet marketing maybe once a week.

Gone were the days when visits to the wet market is a daily affair, buying the daily freshest food and vegetables, especially for the younger generation. Most of us prefer to do our marketing on a weekly basis, buying in bulk, in the comfort and orderly confines of the nearest supermart, where you don't have to fear being ripped off, no need to bargain, and the food is treated and packaged nicely.

A visit to the wet market is pretty much a scary process, especially for the uninitiated. Navigating the mess of stalls, juggling your purchases while taking care not to slip on the wet floor amid the bustling crowd knocking you in every direction, haggling at every stall to get the best deal.. its really too much for me to handle.

I'll miss them no doubt, its human nature to reminisce over things that are long gone.

I miss the rickety single storey, non air-coned, cockroach infested SBS bus that only costs 15 cents per trip.

I miss the ice cream truck, the bread seller ringing their horns below my block.

I feel nostalgic everytime I went back to an old HDB estate with corridors where you can played soccer with friends once upon a time.

I will miss the wet markets as it is our moment of mother and son bonding whenever I went along to help her carry her marketing.

We may save the wet markets today, but it will not be there forever.

If you really want to preserve it, use it.

Its Offical!

Its been decided finally, the tattooedbanker is no longer going to be a banker anymore. I had it with the banks. I will be joining a financial institute where I will be offering my personal advice for a fee. To put it simply to the layman, insurance agent lah.

People around me are calling me crazy. Why give up a job in a big bank that pays you a fixed 3-4k regardless of whether you hit your target, with medical benefits, annual leave entitlement etc? For a job that potentially pays you nothing?! All valid reasons, but for me, I also see it as a job that potentially pays me the sky, and a chance for me to do everything that I want.

Lets face it. Back at the bank, I was basically working minimally 70hrs a week. In a month, 70 * 4 = 280hrs, getting $4000 = $14/hr.
That's not exactly a whole lot. I get the amount of money I get because I work really hard for it. I'm not the type of person that works standard office hours producing a fixed amount of production per hour. I want more. With 70hrs of work per week in a insurance firm, assuming I can produce just half of my production in the bank, I will be getting more than twice the returns. The only case I don't get income is if I don't bother to work, which in all honestly, is not likely going to happen. (exception being my annual reservist)

In terms of recognition and appreciation, I find it more rewarding as well. Back in the bank, although I was the top producer for the last couple of years, never did I once get any recognition or thanks from the top management, whom ironically, took home even bigger paychecks and bonus because of people like me, who helped them achieve their targets and market shares. To the bank, its because of THEIR great management that people like us are able to do our job well. For us, its a given, that's our job. No recognition, no appreciation.

I understand and is ready for the prejudice a insurance agent will face. Story of my life so far anyway :)

Wish me luck.

The right to smoke

Include more sales points?

05:55 AM Oct 08, 2009

by Alicia Wong

SINGAPORE - Supermarkets and places near schools and eateries are some outlets members of the public would like to see banned from selling cigarettes.

And, if most of the respondents to a public consultation had their way, the smoking ban should be extended to cover more public areas such as void decks, within vehicles and HDB homes.

The Health Promotion Board (HPB) and Health Sciences Authority (HSA) released a summary of public feedback to their proposed amendments to the Smoking (Control of Advertisement and Sale of Tobacco) (Cast) Act yesterday.

The four-week consultation drew a total of 171 responses, of which 92 per cent supported reviewing the criteria to prohibit certain premises from selling tobacco products and only 5 per cent objected to prohibiting the sale of such products at petrol stations.

HPB and HSA said they would review the application criteria for tobacco retailers and would "consider the feedback and suggestions from the public."

Nine in 10 of the respondents also suggested other measures to reduce smoking rates, including extending the smoking ban and increasing tobacco taxation.

However, smoker Wong Meiling, 26, felt "smokers are already marginalised enough ... If you sell cigarettes in fewer places, we are still going to smoke".

While six in 10 respondents wanted cigarillos, which are mini-cigars, to be sold in packs of at least 20 sticks, others felt keeping to packs of 10 sticks and raising prices would be more effective instead.

In response, HPB said requiring cigarillos to be sold in bigger packs will "effectively" raise their retail price.

The majority of respondents - 87 per cent - which included individuals and industry players, also supported controlling alternative forms of tobacco products, such as shisha.

Student Charmaine Tan, 19, supported greater regulations against smoking shisha. Said Ms Tan, who smokes shisha occasionally: "It attracts young people (and) they (businesses) don't care about age limit (now)."

Opinions were divided, however, when it came to increasing the minimum composition fine from $30 to $100 as four in 10 respondents felt underaged offenders may come from low-income families. But HPB said first-time underaged offenders would have their fines waived if they completed an online smoking cessation programme.

The majority of respondents also favoured banning misleading labelling such as "light" or "mild" cigarettes, and replacing tar and nicotine labels with a general health warning.

 

Copyright 2009 MediaCorp Pte Ltd | All Rights Reserved

I used to be a pretty heavy smoker, going through at least a pack of cigarettes per day. Happy to say that I had remained smoke-free for the last 10 months, and I do feel better overall I suppose, but that is my choice, to stop smoking. It wasn't forced on me, I don't think that it should be forced on anyone, by anyone.

Smokers are a marginalized bunch. Why are people not going after drinkers, that potentially is at a higher risk of hurting themselves or someone else when drunk. Why not the vehicles or factories that spew more smoke, carbon and pollutant than all smokers combined could? Yes, while I understand all the non-smokers health concerns about 2nd hand smoke etc which is why I think its fair that there are designated smoking areas where non-smokers can stay away from, especially at F&B establishments where kids and family congregate and have dinner and might poses health problems, especially to those with respiratory problems. Smoking is also rightly banned at bus stops, taxi stands, and other modes of public transports. Much as I hate and disagree with the ban on smoking at pubs and discos, I grudgingly accept the fact that non-smokers want an occasional drink without the smoke (although to be fair, I proposed at the time that why not have a smokers only pub/disco, which of course was duly shot down, but I still think its a very viable business idea :P)

But I think it really started to cross a line of absurdity when these people (the non-smokers I presumed) basically try to slap a "no smoking" label on anything and everything they can get their hands on. Might as well slap a label on their forehead and stigmatize them for life. I mean, I can understand, and even foresee a day (if it is not here already), that smokers will only be allowed to smoke in designated areas in public, but to extend it into their private spaces such as mentioned in the article above, within vehicles and HDB homes, I really feel its ridiculous to say the least. If they can't smoke in public places, can't smoke in void decks, can't smoke in their own cars, can't smoke in their own homes (especially given that 85% of Singaporeans live in HDB homes), where do you want them to go?!

Might as well ban tobacco like Bhuntan then. But somehow I doubt the government has the political will to push through that, given the high tax revenues they receive..

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How easy is it to hack a password?

Hacked Hotmail passwords: As simple as 123456
05:55 AM Oct 08, 2009
SAN FRANCISCO - Some surprisingly simple passwords were found in Hotmail's stolen account data, which were published online last week. Two of the most popular were 1234567 and 123456789.

Mr Bogdan Calin, a security researcher who obtained a copy of the 10,000 stolen Windows Live Hotmail usernames and passwords that were posted to the website PasteBin, said: "A big majority of Internet users still use very poor passwords".

Mr Cailin discovered that 82 out of 9,843 valid passwords used these two easily cracked number passwords. Another very popular password is 111111, reported IDG News Service.

The longest password Mr Cailin found: lafaroleratropezoooooooooooooo.

Gmail, Yahoo Mail and AOL have been hit by cyber-crooks using "phishing" tactics to trick users of free Web-based email service into revealing account and access information.

Phishing tactics include sending people tainted email attachments that promise enticing content such as sexy photos of celebrities and luring people to bogus log-in pages that are convincing replicas of legitimate websites.

Microsoft, Google, and Yahoo stressed that hackers did not breach their databases, but rather email users were conned into revealing information.

Other popular passwords are alejandra, alberto, and alejandro. Mr Calin speculates that the crooks were targeting Latinos, just by looking at the password names.

Security experts say that the secure passwords should use a combination of letters numbers and other characters, and not include things like names, dates or dictionary words. AGENCIES

Honestly, I wasn't too surprised by the recent news that thousands of accounts had been hacked using phishing tactics (which basically involves lying/cheating to get owner to reveal their passwords), and not direct attacks on the web servers. I'm also not surprised that many people still choose simple passwords such as 123456. Let me explain why.

Back in my ex-company, we have a few requirements for passwords. For example,

• The password that is at least 7 characters long, with a combination of numbers and alphabets. Which is good, as that is what makes up a strong password.Bad is, its difficult to remember.
  
• You need to change the password once a month, and the password cannot be the same as any of the last 10 passwords that you had used before. Which is good, in keeping things fresh. Bad is, how many random 7 character alphanumeric passwords that you can remember and come up with on a monthly basis?
  
• Lastly, it will automatically log you out of the system after 3 failed attempts, after which you will have to reset and in some cases, reapply for a new password. Which is also good, as it makes it difficult for someone to guess your password and try to access the system with it. Bad is it risks being disruptive to your work, especially at times when you return to the office to meet your deadlines, only to be logged out of system with no IT support due to it being after office hours or having to put in a application for a new passwords that takes up to a week to generate.
  

So what is really happening on the ground is that, people are using simple passwords so that they will not forget and be logged out of the system. Some of the common passwords that half my department are using include

1. a123456 (changing the alphabet to b123456, c123456 etc in subsequent months), 
2. a111111 (changing the numbers to a222222, c222222 etc in subsequent months),
   
3. the month and year combination (e.g. sep2009, oct2009 etc)
   

Either that, they will either write down their more complicated passwords and it will be somewhere near their desk, some even on post-it notes stuck to the keyboard. I could honestly have hacked the accounts of half the people in my department should I wished to.

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Starhub and EPL

I'm sure by now everyone knows that Starhub has lost out to Singtel in the EPL bidding war.

As a Starhub subscriber myself, I am seriously disappointed with the result. Granted, the price had been gng up over the years but being the crazy fan that I am, I've been giving in year after year just so that I can have my weekly fix of games. Moving forward, even though I willing to pay, I still have to go through the inconvience of getting mio tv, adding another set top box, another remote set to my already overflowing tv console that currently already hosts the Starhub set-top box, DVD player, wii, PS2, and hifi set. Sigh...

Lucky for me, my Starhub subscription will be expiring at the end of the season, before mio tv takes over, so I'm free to switch without any penalties. Sorry for those that just signed up though. In any case, to me, Starhub had been squeezing the sports fans for long enough IMO.  Jeannie Ong, StarHub's head of corporate communications, conceded that the company's top line will be affected by the loss of the English soccer rights in mid-2010. But she said the number of customers who use the company's pay TV services for the soccer content alone is a "very small number." Lets see how small this "very small number" really is. Most of the people I know simply get the sports channel for soccer only. For myself, I'm simply forced to take a basic package that I don't even know what channels there are since I do not watch them at all, before I'm able to take the sports channel, and I can't even choose just the football channel, but have to take a host of other programs that I don't watch as well, such as tennis and golf. Hopefully, Singtel doesn't need to do the same thing. I'm optimistic sometimes :P

I wonder if there's live streaming available online for matches, or worse case scenerio, any way to download a delayed telecast, instead of being held hostage by two warring telcos.

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Survey shows civil servants happier compared to those working in private sector

My first reaction seeing this article is "DUH!"

I mean, wouldn't you be, if you are doing basically nothing daily, non-accountable to anyone, cast-iron recession proof income without a need to provide any service at all. I know I would.

I have a friend in the civil service, working as a buyer in a major govt board. I was curious. I thought buyers normally exists only in retails chains etc so I probed more. Basically, his guy is to buy and distributes stationary to the department. With all due respect, I don't think that a graduate is needed to buy and distribute stationary with a salary of > $3000/mth. Of course, I kept quiet out of respect for my friend, but he was openly proud of landing this particular job, boasting about doing nothing most of the time, with his most troubling problem, in his own words, being "thinking of what to do while waiting to knock off". So basically you see him on facebook all the time. I wouldn't really mind a job like that, and wouldn't I be happier?


    
Survey shows civil servants happier compared to those working in private sector
Posted: 01 October 2009 1659 hrs

    
SINGAPORE : Employees working for the government are happier than those in the private sector. This is according to an online survey conducted by JobsCentral, one of Singapore's largest job portals.

Civil servants scored 58.5 on the JobsCentral Work Happiness Indicator, higher than the average score of 55.9 for employees in the private sector.

A score of 50 indicates that an employee feels neutral about his work happiness, and a full score of 100 will mean that he is very happy.

Chief Executive Officer of JobsCentral, Lim Der Shing, said the result was not surprising.

He said the civil service in Singapore is well-run and has rather progressive human resource policies in place.

Employees in education/training have emerge as the happiest followed by those in public relations and consulting.

As for industry, employees in the arts, entertainment and recreation industry are the happiest. - CNA/ms

 

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