HOW DID SGF’S HOLDINGS IN COMMERCIAL PAPER AFFECT ITS RETURN?
SGF holds $132 million of non-bank asset-backed commercial paper. For SGF, these holdings do not represent an investment, because all its investments have to contribute to economic development, but rather a means of managing cash over the short term. When SGF sells investments, it sometimes has a high level of liquidities prior to making a new investment, and cash flow management enables it to earn a return on surplus cash. As at December 31, 2007, we recorded a write-down of $ 19.9 million or 15% of our commercial paper holdings, which has therefore reduced our 2007 return.
