Proper investment policy, disclosure, governance and accountability should be mandated under the law for EPF’s near half a trillion ringgit funds
THE recent brouhaha over the Employees Provident Fund (EPF) financing a government-sponsored RM1.5bil housing scheme highlights several issues facing the nation’s premier retirement fund.
Considering that it is a major heavyweight, which manages almost RM470bil belonging to some 12 million members, it is important to ensure that the EPF does its job, and does it as well as it should.
Questions swirl around three main issues: The kind of projects that the EPF should finance and the risk they bear; the amount of government influence over what the EPF should do; and the level of transparency and accountability that the fund shows to its members.
Sadly, on all three counts, it shows serious deficiencies. Although it has improved in recent years, in terms of the quality of investments, it has in the past made some dubious investments which have never been fully explained.
In part this is due to substantial government influence over its operations, specifically, the Finance Minister, who not only appoints board members but also has substantial influence over them, the law requiring directors in most cases to be subservient to the Finance Minister.
Meantime, the way the EPF reports its results, and its investments and losses and gains, leaves much to be desired. It is impossible for a fund member or anyone else to independently verify the soundness of its investment decisions. There is no or little statutory requirement for appropriate standards of disclosure, governance and accountability.
Because of its huge size, approaching half a trillion ringgit (it should exceed that mark easily this year), a multitude of sins can be easily hidden in its massive books. That’s all the more reason for an eagle eye to be kept on it at all times.
The way to ensure that the EPF keeps on the straight and narrow is to mandate that unambiguously through an amendment to the EPF Act. That should start with clear definitions of directors’ qualifications, requiring them to be those who have impeccable integrity and have an unblemished and distinguished record of service in the finance, accounting and investment fields.
The current Act gives the power to the Government, through the Finance Minister, to nominate the board members, but this should be preferably done through a committee rather than a single individual.
The Act should then specify clearly the role of the directors, which would be to oversee the implementation of measures which will follow a highly specified investment policy and return objectives.
The investment policy should specify a low risk approach that would preserve members’ contributions, while at the same time providing a moderate rate of return.
It should also specify very broad allocation strategy between various classes of assets, for example Malaysian Government Securities, other investment-grade bonds, equities, property and real estate and other investments.
Changes to the EPF Act should clearly specify that directors and the fund should at all times act solely in the interest of members who own the funds in the first place. While the Government can borrow money from the EPF, it has no business inducing it to invest in businesses that have high risk.
That will stop the board from making a decision to invest in a project just because the Finance Minister or someone else told it so. Those with long memories will remember that the EPF has made strange investments before, like Time dotCom.
The changes to the Act should also specify in fairly specific terms the kind of disclosure that it makes. It should itemise all the investments it makes, and state when they were made and at what price, and how much it is losing or making on each one.
Averages have a way of disguising major outliers. On average, gains may be respectable but that does not mean major losses may not have been made on some investments. The only way to ensure that does not get buried under the mountain of funds is to disclose it.
These are not unrealistic changes. Many retirement funds act this way. Take CalPERS or California Public Employees’ Retirement System, the United States’ largest public pension fund with assets totalling some US$220bil (about RM660bil).
It publicly discloses its investment policy and asset allocation decisions. Those interested can view its investment track record. Journalists can ask for and receive its investment details for specific companies, areas and regions.
Here’s what it says in its own words: “Our goal is to efficiently and effectively manage investments to achieve the highest possible return at an acceptable level of risk. In doing so, CalPERS has generated strong long-term returns.”
We want EPF, whose size is not very far away from CalPERS, to do the same for all its members. The EPF does not belong to the Government and therefore the Government must not have full powers over the way it acts.
Until these changes to the Act are made and the EPF board acts professionally and above board in every decision it makes, taking all the required professional advice, we can’t ever be sure that EPF is always acting purely in the interests of its constituents – the Malaysian working public.
Independent consultant P Gunasegaram (t.p.guna@gmail.com) is happy that the EPF declared 6% dividends. He hopes it can continue to do so.
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2012年2月25日星期六
2012年2月24日星期五
OFT Investigates Payday Loans Sector
The consumer watchdog has launched an “extensive” investigation into the payday loans sector on concerns that some payday lenders may be taking advantage of people in financial difficulty.
As part of the review by the Office of Fair Trading (OFT), 50 of the biggest players in the industry will face spot on-site inspections.
Increasing pressure on household finances has helped fuel the rise of short-term, high-interest lenders but the OFT is concerned that some people are being given loans without the proper checks being carried out.
It will investigate whether firms target people unsuitable for credit, or roll over the loans so that the charges escalate to the point where they become unaffordable.
The OFT’s director of consumer credit David Fisher said: “We are concerned that some payday lenders are taking advantage of people in financial difficulty, in breach of the Consumer Credit Act and not meeting the standards set out in our guidance on irresponsible lending. This is unacceptable.
“We will work with the trade bodies to drive up standards but will also not hesitate to take enforcement action, including revoking firms’ licences to operate where necessary.”
The regulator has already written to several financial trade bodies about concerns over payday lenders’ advertising standards after assessing 50 websites.
The Consumer Finance Association (CFA), which was one of the trade organisations contacted and represents several large payday lenders, said the OFT’s approach was “absolutely right”.
“We have to identify areas of mal-practice and stamp it out. We know that there are payday lenders around who are less than transparent in their advertising and do not carry out the right levels of financial checks, in fact some of them brag about that, but they are not and will never be members of the CFA,” chief executive John Lamidey said.
“Research shows that payday loans have a valuable role to play in today’s society and meet a real need for consumers who like the short term, limited nature of the loan and want to avoid borrowing larger amounts over long periods of time.
“So the OFT’s review, by clamping down on poor quality payday lenders, will be good for consumers and good for our industry.”
The Consumer Affairs Minister Norman Lamb has also welcomed the review.
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As part of the review by the Office of Fair Trading (OFT), 50 of the biggest players in the industry will face spot on-site inspections.
Increasing pressure on household finances has helped fuel the rise of short-term, high-interest lenders but the OFT is concerned that some people are being given loans without the proper checks being carried out.
It will investigate whether firms target people unsuitable for credit, or roll over the loans so that the charges escalate to the point where they become unaffordable.
The OFT’s director of consumer credit David Fisher said: “We are concerned that some payday lenders are taking advantage of people in financial difficulty, in breach of the Consumer Credit Act and not meeting the standards set out in our guidance on irresponsible lending. This is unacceptable.
“We will work with the trade bodies to drive up standards but will also not hesitate to take enforcement action, including revoking firms’ licences to operate where necessary.”
The regulator has already written to several financial trade bodies about concerns over payday lenders’ advertising standards after assessing 50 websites.
The Consumer Finance Association (CFA), which was one of the trade organisations contacted and represents several large payday lenders, said the OFT’s approach was “absolutely right”.
“We have to identify areas of mal-practice and stamp it out. We know that there are payday lenders around who are less than transparent in their advertising and do not carry out the right levels of financial checks, in fact some of them brag about that, but they are not and will never be members of the CFA,” chief executive John Lamidey said.
“Research shows that payday loans have a valuable role to play in today’s society and meet a real need for consumers who like the short term, limited nature of the loan and want to avoid borrowing larger amounts over long periods of time.
“So the OFT’s review, by clamping down on poor quality payday lenders, will be good for consumers and good for our industry.”
The Consumer Affairs Minister Norman Lamb has also welcomed the review.
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A lesson on student loans
A lesson on student loans
Student Financial Education Services presents students with advice for dealing with loans.
Student Financial Education Services presents students with advice for dealing with loans.
by STUDENT FINANCIAL EDUCATION SERVICES
This article originally appeared in The Tiger on February 24, 2012 | PRINT
Understanding Your Student Loans
The majority of college students have them: student loans. Student loans have increased in popularity in recent years, mostly due to the increasing tuition rates seen across the country. As you near the end of your tenure here at Clemson, there are a few things to keep in mind that will better prepare you to deal with your student loans.
Where do I find my loans?
If you are like many students, you remember receiving the many pieces of mail over the past four years detailing your loans, but now you cannot seem to find the information. You most likely know your loans by the types of loans they are, like Stafford Loan, Perkins Loan and others. These loans are not all made by one company, but are sold off and serviced by a wide variety.
There is an easy-to-use resource to help locate all of your student loans and who they are owned or serviced by. The website to help you locate your student loans is http://www.nslds.ed.gov/nslds_SA/.
If you have private loans, such as those often made by banks or financial companies such as Discover, Citi, Bank of America or others, you may need to contact that financial institution directly, as their information is sometimes not located in the online database.
How do I pay my loans?
Once you graduate, you should be proactive about finding out when you need to start paying your student loans back.
Graduating from college can be a hectic time, and with all the address changes that you may be going through, it’s easy for mail to get misplaced or sent to the wrong address. It is the responsibility of the borrower, which would be you, to make contact with the owner or servicer of your loan(s) in order to find out when payments begin.
The owner or servicer of your loan will most likely offer you several options for repaying your loans, although not all companies offer these options, and some companies may offer more options. Here are a few basic options:
Standard Repayment: Think of this payment option as a standard loan, you make fixed payments that do not change from month to month for the standard repayment period (which is typically 10 years).
Extended Repayment: This payment option is similar to the standard payment option, except the payment period (which is the time it takes to pay back the loan) will be longer than the standard period. This type of repayment plan may be beneficial to those who have extremely large amounts of student loans and cannot afford the monthly payment under the standard repayment plan.
Graduated Repayment: A graduated repayment plan offers the advantage of allowing you to make lower monthly payments right when you get out of school with the monthly payment increasing every set period of time (such as every two or three years). This type of repayment plan is based on the ideal that your income will increase over time.
Income Dependent Repayment: This payment plan is available in certain government loan situations and allows the borrower to pay a certain percentage of their income toward the loan until the loan is paid off or until a time limit of 25 years is reached. If the time limit of 25 years is reached, the government will forgive the remaining balance on the debt, although tax implications may apply.
Although these are just a few of the standard payment options, it is important to keep your current situation in mind when determining which payment plan is right for you. It is also important to think of the payment plan in terms of which will cost you the most in interest, as opposed to those repayment plans that will accrue the least amount of interest. Students are responsible for verifying the information in this article prior to making financial decisions.
If you would like additional information on student loan payment plans or help understanding your student loan situation, please visit the Student Financial Education Office located in The Union, Office 805. You can set up an appointment by emailing us at sfes1@clemson.edu or calling us at (864) 656-7337.
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The majority of college students have them: student loans. Student loans have increased in popularity in recent years, mostly due to the increasing tuition rates seen across the country. As you near the end of your tenure here at Clemson, there are a few things to keep in mind that will better prepare you to deal with your student loans.
Where do I find my loans?
If you are like many students, you remember receiving the many pieces of mail over the past four years detailing your loans, but now you cannot seem to find the information. You most likely know your loans by the types of loans they are, like Stafford Loan, Perkins Loan and others. These loans are not all made by one company, but are sold off and serviced by a wide variety.
There is an easy-to-use resource to help locate all of your student loans and who they are owned or serviced by. The website to help you locate your student loans is http://www.nslds.ed.gov/nslds_SA/.
If you have private loans, such as those often made by banks or financial companies such as Discover, Citi, Bank of America or others, you may need to contact that financial institution directly, as their information is sometimes not located in the online database.
How do I pay my loans?
Once you graduate, you should be proactive about finding out when you need to start paying your student loans back.
Graduating from college can be a hectic time, and with all the address changes that you may be going through, it’s easy for mail to get misplaced or sent to the wrong address. It is the responsibility of the borrower, which would be you, to make contact with the owner or servicer of your loan(s) in order to find out when payments begin.
The owner or servicer of your loan will most likely offer you several options for repaying your loans, although not all companies offer these options, and some companies may offer more options. Here are a few basic options:
Standard Repayment: Think of this payment option as a standard loan, you make fixed payments that do not change from month to month for the standard repayment period (which is typically 10 years).
Extended Repayment: This payment option is similar to the standard payment option, except the payment period (which is the time it takes to pay back the loan) will be longer than the standard period. This type of repayment plan may be beneficial to those who have extremely large amounts of student loans and cannot afford the monthly payment under the standard repayment plan.
Graduated Repayment: A graduated repayment plan offers the advantage of allowing you to make lower monthly payments right when you get out of school with the monthly payment increasing every set period of time (such as every two or three years). This type of repayment plan is based on the ideal that your income will increase over time.
Income Dependent Repayment: This payment plan is available in certain government loan situations and allows the borrower to pay a certain percentage of their income toward the loan until the loan is paid off or until a time limit of 25 years is reached. If the time limit of 25 years is reached, the government will forgive the remaining balance on the debt, although tax implications may apply.
Although these are just a few of the standard payment options, it is important to keep your current situation in mind when determining which payment plan is right for you. It is also important to think of the payment plan in terms of which will cost you the most in interest, as opposed to those repayment plans that will accrue the least amount of interest. Students are responsible for verifying the information in this article prior to making financial decisions.
If you would like additional information on student loan payment plans or help understanding your student loan situation, please visit the Student Financial Education Office located in The Union, Office 805. You can set up an appointment by emailing us at sfes1@clemson.edu or calling us at (864) 656-7337.
Views: 32
View the discussion thread.
http://tourism9.com/ http://vkins.com/
3 Things That Could Move Financial Stocks Today
NEW YORK (TheStreet) — Here’s the news and headlines that could drive action in the big financial stocks today.
Bank of America(BAC) said in its annual 10K filing with the SEC that it will stop selling new home loans to Fannie Mae(FNMA), citing an ongoing dispute with the housing giant over mortgage repurchase claims. According to press reports, the bank has said its move will not affect customers seeking home loans as it will continue to sell new mortgages to Freddie Mac(FMCC) or retain them in their own books. It will continue to offer loans refinanced and modified through government programs to Fannie Mae. Bank of America has been scaling back its presence in the mortgage origination business. Last year it exited the correspondent mortgages business. The bank also disclosed that it still faces “reasonably possible losses” of $3.6 billion in addition to what it has accrued. http://tourism9.com/ http://vkins.com/
Citigroup(C) is in the process of winding down its nearly 10% stake in India’s HDFC (Housing Development and Finance Corporation). The bank will sell 145.26 million shares in the leading housing finance company as part of a block trade, with an offer range of 630 and 730 rupees, according to Financial Times. At the upper range, the bank will raise $2.1 billion from the sale. The final price will be announced Friday morning. Citigroup had already pared its stake in HDFC from 11.4% to under 10% last June. At that time, the bank had said it was a mere response to the anticipated changes to its capital structure under Basel III and was not a reflection of its outlook on HDFC or the Indian market. Analysts believe the sale may be linked to an anticipated writedown the bank may have to take if Morgan Stanley(MS) exercises its option to buy an additional 14% stake in Morgan Stanley Smith Barney joint venture.
Friday also brings economic data in the form of new homes sales data at 10:00 a.m. St. Louis Federal Reserve President James Bullard will be speaking in New York about housing and monetary policy. His comments may get attention in light of the Fed’s recent calls for policy action to boost housing.
Bank of America(BAC) said in its annual 10K filing with the SEC that it will stop selling new home loans to Fannie Mae(FNMA), citing an ongoing dispute with the housing giant over mortgage repurchase claims. According to press reports, the bank has said its move will not affect customers seeking home loans as it will continue to sell new mortgages to Freddie Mac(FMCC) or retain them in their own books. It will continue to offer loans refinanced and modified through government programs to Fannie Mae. Bank of America has been scaling back its presence in the mortgage origination business. Last year it exited the correspondent mortgages business. The bank also disclosed that it still faces “reasonably possible losses” of $3.6 billion in addition to what it has accrued. http://tourism9.com/ http://vkins.com/
Citigroup(C) is in the process of winding down its nearly 10% stake in India’s HDFC (Housing Development and Finance Corporation). The bank will sell 145.26 million shares in the leading housing finance company as part of a block trade, with an offer range of 630 and 730 rupees, according to Financial Times. At the upper range, the bank will raise $2.1 billion from the sale. The final price will be announced Friday morning. Citigroup had already pared its stake in HDFC from 11.4% to under 10% last June. At that time, the bank had said it was a mere response to the anticipated changes to its capital structure under Basel III and was not a reflection of its outlook on HDFC or the Indian market. Analysts believe the sale may be linked to an anticipated writedown the bank may have to take if Morgan Stanley(MS) exercises its option to buy an additional 14% stake in Morgan Stanley Smith Barney joint venture.
Friday also brings economic data in the form of new homes sales data at 10:00 a.m. St. Louis Federal Reserve President James Bullard will be speaking in New York about housing and monetary policy. His comments may get attention in light of the Fed’s recent calls for policy action to boost housing.
Anxiety to repay biz loans may weaken DOLE program
by Jeremaiah M. Opiniano, OFW Journalism Consortium
PASAY CITY – A months-old program handing out business loans to returning migrant workers does not require collateral from borrowers, and a finance expert thinks borrowers might encounter uneasiness to repay these loans.
The P2 billion Reintegration Fund for returning overseas Filipino workers (OFWs) hands out loans ranging from P200,000 to P2 million to existing migrant entrepreneurs. But microfinance specialist Jun Perez is worried that required documents returning OFWs must present and frequently show might give borrowers hesitation to repay.
The context here, said the managing director of the microfinance network Seed Finance Corp., is the size of the enterprises vis-à-vis returning OFWs’ abilities to repay.
The loan range implies that borrowers run small and medium enterprises (SMEs). Meanwhile, lenders Land Bank of the Philippines (LandBank) and Development Bank of the Philippines (DBP) will require OFW borrowers to show documents related to their enterprises, such as purchase orders and titles to equipment purchased. There’s no collateral required for this loan program.
And this is where Perez’s view comes in about borrowers’ “compunction,” or a person’s strong uneasiness caused by a sense of guilt.
Borrowers running SMEs have to title their properties just to secure their loans, though the situation might not be applicable to those running sari-sari (small retail) stores or buy-and-sell ventures. Titling these properties entails costs, in the hope that with the titling the enterprise grows. With such growth the enterprise will now institutionalize having purchase orders (like sari-sari stores) like what usual businesses have.
Then the uneasiness comes in since running the business, producing the titles and business-related documents, and repaying the loans all come into play for the OFW borrower. In such a situation, the scheme of not requiring collateral for these SME loans “might be disadvantageous to the banks (DBP and LBP),” Perez said.
The Reintegration Fund represents the new scheme of the Overseas Workers Welfare Administration (OWWA) and the National Reintegration Center for OFWs (NRCO) to hand out livelihood loans to overseas workers. No less than President Aquino III ordered the Department of Labor and Employment (DOLE) to roll out this program.
But years of previous livelihood programs handled by OWWA, whether handled alone or in collaboration with financial institutions such as the National Livelihood Development Corp. (NLDC), have histories of high non-repayment rates by OFW borrowers.
Risks
The fund has P0.5 billion each from Land Bank and DBP, as well as a guarantee amount of P1 billion from OWWA (the world’s largest migrant welfare fund whose resources come from US$25 membership fees that departing overseas workers pay on a per-contract basis).
Officials of Land Bank and DBP explained during the fund’s launch months ago that both banks will offer an interest rate of only 7.5 percent to each of the loans, payable from two to seven years.
The loans, said Land Bank’s Cressida Mendoza and DBP’s Brillo Reynes during the congress, will make up 80 percent of the total capital needed by the enterprise. There’s also a catch: The businesses to be financed by these loans “must be earning”.
That way, said Mendoza, the situation “will be mutually beneficial to the OFW and to the bank”.
NRCO director Vivian Tornea said in a DOLE release that while there’s no collateral, loan applicants must “guarantee the business enterprise… is viable and profitable —or earning, say, like P10,000 a month”.
Actually, Perez and another development finance expert, Hector de Pedro of the nonprofit Mandato Inc., think both LBP and DBP have proven track records in handing out these reintegration loans.
It’s just that the image of these banks as part of the “government” that worries both Perez and de Pedro. Government-run lending programs “fail,” de Pedro thinks, because “the (word) government is literally synonymous to the word dole out —and the approaches of some agencies do not breed entrepreneurs”.
Thus, Perez said the Reintegration Fund’s implementation “must maintain the discipline and conviction that it must be sustainable, thus must support clearly-viable or potentially viable (enterprises) with community impact”.
Not surprisingly, the Reintegration Fund leaves those OFWs planning to launch start-up enterprises by the wayside—similar to how banks offer loans to existing ventures (but not to start-ups).
The upside of this regulation by DBP and LBP is that government invests its loan resources on proven practices, and that means all figures are (easily) given. Still, new business models coming from OFW enterprise start-ups may not be developed “because there is no support,” said de Pedro.
Repayment
The issue of repayment has haunted previous livelihood programs of OWWA, the most recent of which was the loans OWWA and the NRCO issued to OFWs displaced by the global economic crisis in 2009.
Previous OWWA and NRCO programs on reintegration saw OWWA directly providing these services, especially loans (even if OWWA is not a quasi-financial institution). OWWA also has a running Livelihood Development Program for OFWs (LDPO), in coordination with the National Livelihood Development Corporation —though information is not available on the nationally-run loan program’s repayment performance.
During a press conference after the fund’s launch, Labor Undersecretary Danilo Cruz told the OFW Journalism Consortium that OWWA “will exert extra efforts” to monitor borrowers’ repayment of their loans. Handling loans “is not OWWA’s forte,” Cruz adds, justifying DOLE’s partnership with LandBank and DBP. The partnership sees OWWA’s share to the Reintegration Fund as a guarantee fund in case of non-repayment, Cruz told reporters during a press conference.
LDPO has its own repayment woes. For example, officials of a cooperative in central Philippines that is a conduit of LDPO loans said there is a “high” non-repayment rate among their OFW borrowers. The conduit, the Philippine Cooperative Central Fund Federation, then conducted a financial education and business assessment seminar to some of its borrowers so that the latter are told how to handle the capital they have.
For migrant civil society advocates like Carmelita Nuqui of the Development Action for Women Network (DAWN), the reintegration fund’s regulations are “different from what the government says in public”. Loans for returning migrants, Nuqui says, are available “but why can’t overseas Filipino workers get them right away if these are really for them?” OFW Journalism Consortium
http://tourism9.com/ http://vkins.com/
The P2 billion Reintegration Fund for returning overseas Filipino workers (OFWs) hands out loans ranging from P200,000 to P2 million to existing migrant entrepreneurs. But microfinance specialist Jun Perez is worried that required documents returning OFWs must present and frequently show might give borrowers hesitation to repay.
The context here, said the managing director of the microfinance network Seed Finance Corp., is the size of the enterprises vis-à-vis returning OFWs’ abilities to repay.
The loan range implies that borrowers run small and medium enterprises (SMEs). Meanwhile, lenders Land Bank of the Philippines (LandBank) and Development Bank of the Philippines (DBP) will require OFW borrowers to show documents related to their enterprises, such as purchase orders and titles to equipment purchased. There’s no collateral required for this loan program.
And this is where Perez’s view comes in about borrowers’ “compunction,” or a person’s strong uneasiness caused by a sense of guilt.
Borrowers running SMEs have to title their properties just to secure their loans, though the situation might not be applicable to those running sari-sari (small retail) stores or buy-and-sell ventures. Titling these properties entails costs, in the hope that with the titling the enterprise grows. With such growth the enterprise will now institutionalize having purchase orders (like sari-sari stores) like what usual businesses have.
Then the uneasiness comes in since running the business, producing the titles and business-related documents, and repaying the loans all come into play for the OFW borrower. In such a situation, the scheme of not requiring collateral for these SME loans “might be disadvantageous to the banks (DBP and LBP),” Perez said.
The Reintegration Fund represents the new scheme of the Overseas Workers Welfare Administration (OWWA) and the National Reintegration Center for OFWs (NRCO) to hand out livelihood loans to overseas workers. No less than President Aquino III ordered the Department of Labor and Employment (DOLE) to roll out this program.
But years of previous livelihood programs handled by OWWA, whether handled alone or in collaboration with financial institutions such as the National Livelihood Development Corp. (NLDC), have histories of high non-repayment rates by OFW borrowers.
Risks
The fund has P0.5 billion each from Land Bank and DBP, as well as a guarantee amount of P1 billion from OWWA (the world’s largest migrant welfare fund whose resources come from US$25 membership fees that departing overseas workers pay on a per-contract basis).
Officials of Land Bank and DBP explained during the fund’s launch months ago that both banks will offer an interest rate of only 7.5 percent to each of the loans, payable from two to seven years.
The loans, said Land Bank’s Cressida Mendoza and DBP’s Brillo Reynes during the congress, will make up 80 percent of the total capital needed by the enterprise. There’s also a catch: The businesses to be financed by these loans “must be earning”.
That way, said Mendoza, the situation “will be mutually beneficial to the OFW and to the bank”.
NRCO director Vivian Tornea said in a DOLE release that while there’s no collateral, loan applicants must “guarantee the business enterprise… is viable and profitable —or earning, say, like P10,000 a month”.
Actually, Perez and another development finance expert, Hector de Pedro of the nonprofit Mandato Inc., think both LBP and DBP have proven track records in handing out these reintegration loans.
It’s just that the image of these banks as part of the “government” that worries both Perez and de Pedro. Government-run lending programs “fail,” de Pedro thinks, because “the (word) government is literally synonymous to the word dole out —and the approaches of some agencies do not breed entrepreneurs”.
Thus, Perez said the Reintegration Fund’s implementation “must maintain the discipline and conviction that it must be sustainable, thus must support clearly-viable or potentially viable (enterprises) with community impact”.
Not surprisingly, the Reintegration Fund leaves those OFWs planning to launch start-up enterprises by the wayside—similar to how banks offer loans to existing ventures (but not to start-ups).
The upside of this regulation by DBP and LBP is that government invests its loan resources on proven practices, and that means all figures are (easily) given. Still, new business models coming from OFW enterprise start-ups may not be developed “because there is no support,” said de Pedro.
Repayment
The issue of repayment has haunted previous livelihood programs of OWWA, the most recent of which was the loans OWWA and the NRCO issued to OFWs displaced by the global economic crisis in 2009.
Previous OWWA and NRCO programs on reintegration saw OWWA directly providing these services, especially loans (even if OWWA is not a quasi-financial institution). OWWA also has a running Livelihood Development Program for OFWs (LDPO), in coordination with the National Livelihood Development Corporation —though information is not available on the nationally-run loan program’s repayment performance.
During a press conference after the fund’s launch, Labor Undersecretary Danilo Cruz told the OFW Journalism Consortium that OWWA “will exert extra efforts” to monitor borrowers’ repayment of their loans. Handling loans “is not OWWA’s forte,” Cruz adds, justifying DOLE’s partnership with LandBank and DBP. The partnership sees OWWA’s share to the Reintegration Fund as a guarantee fund in case of non-repayment, Cruz told reporters during a press conference.
LDPO has its own repayment woes. For example, officials of a cooperative in central Philippines that is a conduit of LDPO loans said there is a “high” non-repayment rate among their OFW borrowers. The conduit, the Philippine Cooperative Central Fund Federation, then conducted a financial education and business assessment seminar to some of its borrowers so that the latter are told how to handle the capital they have.
For migrant civil society advocates like Carmelita Nuqui of the Development Action for Women Network (DAWN), the reintegration fund’s regulations are “different from what the government says in public”. Loans for returning migrants, Nuqui says, are available “but why can’t overseas Filipino workers get them right away if these are really for them?” OFW Journalism Consortium
http://tourism9.com/ http://vkins.com/
Social Entertainment Leader Milyoni Secures $11 Million in Funding
PLEASANTON, CA–(Marketwire -02/24/12)- Milyoni, the leader in social entertainment, today announced that it has secured $11 million in Series B financing led by Oak Investment Partners. Previous investors ATA Ventures and Thomvest Ventures also participated in the round. Milyoni will use the funding to further extend its product portfolio in bringing social entertainment experiences to fans on Facebook. The company will also expand its U.S. presence, with offices opening in Los Angeles and New York City.
“With more than 800 million users and growing, Facebook has established itself as a go-to platform for the discovery and consumption of content today,” said John Corpus, founder and CEO. “In 2012, we anticipate an even greater shift in behavior, with more entertainment companies putting the marketing muscle behind their Facebook presence to further expand their selections of movies, music and other content on the platform. The way we see it, we’re only in the first of a nine inning game.”
Milyoni provides a new way for entertainment companies to take their Facebook presence to the next level by providing a fun, unique, shared and social experience to users. Using Social Cinema and Social Live, fans can easily view, like and comment during particular points within a movie, TV show, sporting event or concert and chat with friends while watching. Over the last year, Milyoni has powered some of the biggest social entertainment campaigns on Facebook and has stamped a number of innovative firsts, including the first PPV movie on Facebook, the first live PPV concert on Facebook, the first socially interactive movie and the first day-and-date movie release on Facebook.
“Oak Investment Partners is excited to join the Milyoni team to further extend their stronghold in the social entertainment arena,” said Fred Harman, Managing Partner at Oak Investment Partners. “The company has shown tremendous traction and growth over the last year, hosting more than 100 titles on Facebook today. The audience for Milyoni’s technology continues to expand along with Facebook’s growth. We’re confident that the Milyoni team has both the passion and experience to propel the company forward.”
“We’ve believed in Milyoni from the beginning and have seen the company’s growth mirror that of the entertainment industry’s needs,” said Hatch Graham, Managing Director, ATA Ventures. “Milyoni’s technology has evolved into the powerhouse social entertainment platform it is today, and the company is poised to continue its leadership in the space. ATA Ventures is thrilled to be a supporting partner.”
Milyoni is primed for an impressive 2012 with 15 current studio partnerships and dozens more in the pipeline. The company has more than 3,000 Social Cinema titles and over 50 Social Live events slated by year’s end. Milyoni will continue to enrich studio interaction, administration and analytics functionality bringing unprecedented insight and engagement to the entertainment experience.
For more information, visit http://www.milyoni.com.
About MilyoniBased in the San Francisco Bay Area, Milyoni, Inc. is the leader in social entertainment. The company’s technology provides entertainment companies with a way to connect and engage with Facebook fans, and turn them into customers. Whether it’s watching a live concert, movie or sporting event or shopping your favorite brands, Milyoni enables companies to monetize fans pages through a unique level of engagement and a shared, social experience. Milyoni’s services reach over 150 million fans from industry leading customers, including Universal Pictures, Lionsgate, Paramount Studios, Big Air Studios, Austin City Limits Live, Turner Broadcasting, University of Oklahoma and The NBA to bring a variety of digital content and physical goods to fans on Facebook. For more information, visit www.milyoni.com.
About Oak Investment PartnersOak Investment Partners is a multistage venture capital firm and a lead investor in the next generation of enduring growth companies. Since 1978 the firm has invested $9 billion in nearly 500 companies around the world, earning the trust of entrepreneurs with a senior team that delivers steady guidance, deep domain expertise and a consistent investment philosophy. Its current portfolio includes Bleacher Report, Demand Media, Federated Media, Good Technology, KAYAK Software, MobiTV, Rearden Commerce, and Wonga. Oak Investment Partners is also known for its historical investments in aQuantive, Allyes, AthenaHealth, Gmarket, HuffingtonPost, Inktomi, Netspend, Polycom, Seagate, and TeleAtlas.
About ATA VenturesATA Ventures is a venture capital firm focused on seeking out early stage private companies that appear to offer above average prospects for capital growth. With over $450 Million of capital under management, ATA Ventures focuses on Information Technology (IT) and provides seed capital and early stages of financing to these companies. For more information, visit http://ataventures.com.
About Thomvest VenturesThomvest Ventures is an early-stage venture capital firm committed to the success of our entrepreneur partners. We primarily focus on investments in areas where we have deep expertise and experience, including software, technology-enabled services, and hardware businesses. The capital we invest is our own, enabling us to be more creative, flexible and patient than many venture investors. More than two-thirds of the companies we have funded in the last decade have either gone public, been acquired, or continue to grow as independent businesses. For more information, visit www.thomvest.com.
Facebook® is a registered trademark of Facebook Inc.
http://tourism9.com/ http://vkins.com/
“With more than 800 million users and growing, Facebook has established itself as a go-to platform for the discovery and consumption of content today,” said John Corpus, founder and CEO. “In 2012, we anticipate an even greater shift in behavior, with more entertainment companies putting the marketing muscle behind their Facebook presence to further expand their selections of movies, music and other content on the platform. The way we see it, we’re only in the first of a nine inning game.”
Milyoni provides a new way for entertainment companies to take their Facebook presence to the next level by providing a fun, unique, shared and social experience to users. Using Social Cinema and Social Live, fans can easily view, like and comment during particular points within a movie, TV show, sporting event or concert and chat with friends while watching. Over the last year, Milyoni has powered some of the biggest social entertainment campaigns on Facebook and has stamped a number of innovative firsts, including the first PPV movie on Facebook, the first live PPV concert on Facebook, the first socially interactive movie and the first day-and-date movie release on Facebook.
“Oak Investment Partners is excited to join the Milyoni team to further extend their stronghold in the social entertainment arena,” said Fred Harman, Managing Partner at Oak Investment Partners. “The company has shown tremendous traction and growth over the last year, hosting more than 100 titles on Facebook today. The audience for Milyoni’s technology continues to expand along with Facebook’s growth. We’re confident that the Milyoni team has both the passion and experience to propel the company forward.”
“We’ve believed in Milyoni from the beginning and have seen the company’s growth mirror that of the entertainment industry’s needs,” said Hatch Graham, Managing Director, ATA Ventures. “Milyoni’s technology has evolved into the powerhouse social entertainment platform it is today, and the company is poised to continue its leadership in the space. ATA Ventures is thrilled to be a supporting partner.”
Milyoni is primed for an impressive 2012 with 15 current studio partnerships and dozens more in the pipeline. The company has more than 3,000 Social Cinema titles and over 50 Social Live events slated by year’s end. Milyoni will continue to enrich studio interaction, administration and analytics functionality bringing unprecedented insight and engagement to the entertainment experience.
For more information, visit http://www.milyoni.com.
About MilyoniBased in the San Francisco Bay Area, Milyoni, Inc. is the leader in social entertainment. The company’s technology provides entertainment companies with a way to connect and engage with Facebook fans, and turn them into customers. Whether it’s watching a live concert, movie or sporting event or shopping your favorite brands, Milyoni enables companies to monetize fans pages through a unique level of engagement and a shared, social experience. Milyoni’s services reach over 150 million fans from industry leading customers, including Universal Pictures, Lionsgate, Paramount Studios, Big Air Studios, Austin City Limits Live, Turner Broadcasting, University of Oklahoma and The NBA to bring a variety of digital content and physical goods to fans on Facebook. For more information, visit www.milyoni.com.
About Oak Investment PartnersOak Investment Partners is a multistage venture capital firm and a lead investor in the next generation of enduring growth companies. Since 1978 the firm has invested $9 billion in nearly 500 companies around the world, earning the trust of entrepreneurs with a senior team that delivers steady guidance, deep domain expertise and a consistent investment philosophy. Its current portfolio includes Bleacher Report, Demand Media, Federated Media, Good Technology, KAYAK Software, MobiTV, Rearden Commerce, and Wonga. Oak Investment Partners is also known for its historical investments in aQuantive, Allyes, AthenaHealth, Gmarket, HuffingtonPost, Inktomi, Netspend, Polycom, Seagate, and TeleAtlas.
About ATA VenturesATA Ventures is a venture capital firm focused on seeking out early stage private companies that appear to offer above average prospects for capital growth. With over $450 Million of capital under management, ATA Ventures focuses on Information Technology (IT) and provides seed capital and early stages of financing to these companies. For more information, visit http://ataventures.com.
About Thomvest VenturesThomvest Ventures is an early-stage venture capital firm committed to the success of our entrepreneur partners. We primarily focus on investments in areas where we have deep expertise and experience, including software, technology-enabled services, and hardware businesses. The capital we invest is our own, enabling us to be more creative, flexible and patient than many venture investors. More than two-thirds of the companies we have funded in the last decade have either gone public, been acquired, or continue to grow as independent businesses. For more information, visit www.thomvest.com.
Facebook® is a registered trademark of Facebook Inc.
http://tourism9.com/ http://vkins.com/
Social Entertainment Leader Milyoni Secures $11 Million in Funding
PLEASANTON, CA–(Marketwire -02/24/12)- Milyoni, the leader in social entertainment, today announced that it has secured $11 million in Series B financing led by Oak Investment Partners. Previous investors ATA Ventures and Thomvest Ventures also participated in the round. Milyoni will use the funding to further extend its product portfolio in bringing social entertainment experiences to fans on Facebook. The company will also expand its U.S. presence, with offices opening in Los Angeles and New York City.
“With more than 800 million users and growing, Facebook has established itself as a go-to platform for the discovery and consumption of content today,” said John Corpus, founder and CEO. “In 2012, we anticipate an even greater shift in behavior, with more entertainment companies putting the marketing muscle behind their Facebook presence to further expand their selections of movies, music and other content on the platform. The way we see it, we’re only in the first of a nine inning game.”
Milyoni provides a new way for entertainment companies to take their Facebook presence to the next level by providing a fun, unique, shared and social experience to users. Using Social Cinema and Social Live, fans can easily view, like and comment during particular points within a movie, TV show, sporting event or concert and chat with friends while watching. Over the last year, Milyoni has powered some of the biggest social entertainment campaigns on Facebook and has stamped a number of innovative firsts, including the first PPV movie on Facebook, the first live PPV concert on Facebook, the first socially interactive movie and the first day-and-date movie release on Facebook.
“Oak Investment Partners is excited to join the Milyoni team to further extend their stronghold in the social entertainment arena,” said Fred Harman, Managing Partner at Oak Investment Partners. “The company has shown tremendous traction and growth over the last year, hosting more than 100 titles on Facebook today. The audience for Milyoni’s technology continues to expand along with Facebook’s growth. We’re confident that the Milyoni team has both the passion and experience to propel the company forward.”
“We’ve believed in Milyoni from the beginning and have seen the company’s growth mirror that of the entertainment industry’s needs,” said Hatch Graham, Managing Director, ATA Ventures. “Milyoni’s technology has evolved into the powerhouse social entertainment platform it is today, and the company is poised to continue its leadership in the space. ATA Ventures is thrilled to be a supporting partner.”
Milyoni is primed for an impressive 2012 with 15 current studio partnerships and dozens more in the pipeline. The company has more than 3,000 Social Cinema titles and over 50 Social Live events slated by year’s end. Milyoni will continue to enrich studio interaction, administration and analytics functionality bringing unprecedented insight and engagement to the entertainment experience.
For more information, visit http://www.milyoni.com.
About MilyoniBased in the San Francisco Bay Area, Milyoni, Inc. is the leader in social entertainment. The company’s technology provides entertainment companies with a way to connect and engage with Facebook fans, and turn them into customers. Whether it’s watching a live concert, movie or sporting event or shopping your favorite brands, Milyoni enables companies to monetize fans pages through a unique level of engagement and a shared, social experience. Milyoni’s services reach over 150 million fans from industry leading customers, including Universal Pictures, Lionsgate, Paramount Studios, Big Air Studios, Austin City Limits Live, Turner Broadcasting, University of Oklahoma and The NBA to bring a variety of digital content and physical goods to fans on Facebook. For more information, visit www.milyoni.com.
About Oak Investment PartnersOak Investment Partners is a multistage venture capital firm and a lead investor in the next generation of enduring growth companies. Since 1978 the firm has invested $9 billion in nearly 500 companies around the world, earning the trust of entrepreneurs with a senior team that delivers steady guidance, deep domain expertise and a consistent investment philosophy. Its current portfolio includes Bleacher Report, Demand Media, Federated Media, Good Technology, KAYAK Software, MobiTV, Rearden Commerce, and Wonga. Oak Investment Partners is also known for its historical investments in aQuantive, Allyes, AthenaHealth, Gmarket, HuffingtonPost, Inktomi, Netspend, Polycom, Seagate, and TeleAtlas.
About ATA VenturesATA Ventures is a venture capital firm focused on seeking out early stage private companies that appear to offer above average prospects for capital growth. With over $450 Million of capital under management, ATA Ventures focuses on Information Technology (IT) and provides seed capital and early stages of financing to these companies. For more information, visit http://ataventures.com.
About Thomvest VenturesThomvest Ventures is an early-stage venture capital firm committed to the success of our entrepreneur partners. We primarily focus on investments in areas where we have deep expertise and experience, including software, technology-enabled services, and hardware businesses. The capital we invest is our own, enabling us to be more creative, flexible and patient than many venture investors. More than two-thirds of the companies we have funded in the last decade have either gone public, been acquired, or continue to grow as independent businesses. For more information, visit www.thomvest.com.
Facebook® is a registered trademark of Facebook Inc.
http://tourism9.com/ http://vkins.com/
“With more than 800 million users and growing, Facebook has established itself as a go-to platform for the discovery and consumption of content today,” said John Corpus, founder and CEO. “In 2012, we anticipate an even greater shift in behavior, with more entertainment companies putting the marketing muscle behind their Facebook presence to further expand their selections of movies, music and other content on the platform. The way we see it, we’re only in the first of a nine inning game.”
Milyoni provides a new way for entertainment companies to take their Facebook presence to the next level by providing a fun, unique, shared and social experience to users. Using Social Cinema and Social Live, fans can easily view, like and comment during particular points within a movie, TV show, sporting event or concert and chat with friends while watching. Over the last year, Milyoni has powered some of the biggest social entertainment campaigns on Facebook and has stamped a number of innovative firsts, including the first PPV movie on Facebook, the first live PPV concert on Facebook, the first socially interactive movie and the first day-and-date movie release on Facebook.
“Oak Investment Partners is excited to join the Milyoni team to further extend their stronghold in the social entertainment arena,” said Fred Harman, Managing Partner at Oak Investment Partners. “The company has shown tremendous traction and growth over the last year, hosting more than 100 titles on Facebook today. The audience for Milyoni’s technology continues to expand along with Facebook’s growth. We’re confident that the Milyoni team has both the passion and experience to propel the company forward.”
“We’ve believed in Milyoni from the beginning and have seen the company’s growth mirror that of the entertainment industry’s needs,” said Hatch Graham, Managing Director, ATA Ventures. “Milyoni’s technology has evolved into the powerhouse social entertainment platform it is today, and the company is poised to continue its leadership in the space. ATA Ventures is thrilled to be a supporting partner.”
Milyoni is primed for an impressive 2012 with 15 current studio partnerships and dozens more in the pipeline. The company has more than 3,000 Social Cinema titles and over 50 Social Live events slated by year’s end. Milyoni will continue to enrich studio interaction, administration and analytics functionality bringing unprecedented insight and engagement to the entertainment experience.
For more information, visit http://www.milyoni.com.
About MilyoniBased in the San Francisco Bay Area, Milyoni, Inc. is the leader in social entertainment. The company’s technology provides entertainment companies with a way to connect and engage with Facebook fans, and turn them into customers. Whether it’s watching a live concert, movie or sporting event or shopping your favorite brands, Milyoni enables companies to monetize fans pages through a unique level of engagement and a shared, social experience. Milyoni’s services reach over 150 million fans from industry leading customers, including Universal Pictures, Lionsgate, Paramount Studios, Big Air Studios, Austin City Limits Live, Turner Broadcasting, University of Oklahoma and The NBA to bring a variety of digital content and physical goods to fans on Facebook. For more information, visit www.milyoni.com.
About Oak Investment PartnersOak Investment Partners is a multistage venture capital firm and a lead investor in the next generation of enduring growth companies. Since 1978 the firm has invested $9 billion in nearly 500 companies around the world, earning the trust of entrepreneurs with a senior team that delivers steady guidance, deep domain expertise and a consistent investment philosophy. Its current portfolio includes Bleacher Report, Demand Media, Federated Media, Good Technology, KAYAK Software, MobiTV, Rearden Commerce, and Wonga. Oak Investment Partners is also known for its historical investments in aQuantive, Allyes, AthenaHealth, Gmarket, HuffingtonPost, Inktomi, Netspend, Polycom, Seagate, and TeleAtlas.
About ATA VenturesATA Ventures is a venture capital firm focused on seeking out early stage private companies that appear to offer above average prospects for capital growth. With over $450 Million of capital under management, ATA Ventures focuses on Information Technology (IT) and provides seed capital and early stages of financing to these companies. For more information, visit http://ataventures.com.
About Thomvest VenturesThomvest Ventures is an early-stage venture capital firm committed to the success of our entrepreneur partners. We primarily focus on investments in areas where we have deep expertise and experience, including software, technology-enabled services, and hardware businesses. The capital we invest is our own, enabling us to be more creative, flexible and patient than many venture investors. More than two-thirds of the companies we have funded in the last decade have either gone public, been acquired, or continue to grow as independent businesses. For more information, visit www.thomvest.com.
Facebook® is a registered trademark of Facebook Inc.
http://tourism9.com/ http://vkins.com/
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