1. RM105.77 million in dividends gives an average rate of return of only about 3% over 4 years (2013-2016). This is below par for an investment cost of RM876 million, as minus inflation of about 3% a year, the net return is a pathetic 0%!!!
2. There is the risk free opportunity cost to consider. Had EPF placed RM876 million on FD with a bank, it would have earned a minimu of say, 876 x 4%=35 million a year x 4= RM140 million. This is more than the RM105.77 dividends AND, its capital would have been intact!
3. If EPF had cut it's losses early, it might have been able to re-invest the money in a blue chip which would may have given a capital gain rather than a massive loss. Instead they paid heavily for allowing themselves to be coerced into a dud investment by Najib.