Is it good return?

Today all Malaysia local media reported country retirement funds achieved better result, it was about 7.7 billion. So that the high range officer come out to show off. But reading details of report, you could see an investment at London cost 350 million pound sterling but need to borrow about 490 million pound sterling. Why so funny? I thought normally we should pay some down payment on such purchase and then the loan amount normally lower than cost of purchase. So the difference of 140 million pound sterling use for what purpose?

That is so funny Malaysia retirement every month can registered net cash flow. Why we need to borrow? Is it the loan interest lower than our investment yield? Look at the results, maybe but not necessary. If the 7.7 billion can maintain at every quarter and they have about 170 billion funds in hand. That is about 18% return. Very good!!!!

Wondering is 18% return the contributor only can received about 6% interest. That is impossible. Where is the difference. Maybe use it to cover unnecessary loan, because the money has been misused. Just like London Investment. Maybe but not of course.

Sometime, they should think some other excuse before call for media conference. Otherwise, those unnecessary investment become a big mistake and let people loss confident on them.