An investment loss does not constitute a draw on Past Reserves, as long as the disposal of the investment is done at fair market value.

When any bona fide investment decision is made, there is expectation of a financial gain. However, no large investor is able to avoid taking some losses in investments after they are made, as all investments carry some degree of risk.

After an investment is made, any losses arising from its sale at fair market value do not constitute a draw on Past Reserves. Similarly, mark-to-market losses (i.e., falls in the market value of investments that are still being held) are also not considered a draw on Past Reserves.

The Government assesses the performance of the investment entities over the long term, rather than individual investments or over the short term where their performances would be influenced by the immediate market cycle.