According to reports, 45% of CPF members who made investments through the CPF Investment Scheme (CPFIS) suffered losses during the period from 1 Oct 2010 to 30 Sep 2011. I am wondering if this has taken into consideration the opportunity cost of the risk free rate the CPF would have enjoyed had it not been invested, i.e. is the returns higher than the 2.5% for CPF-OA funds, 4% for CPF-SA funds and the additional 1% on the first $60,000. My belief is that it has not accounted for this or else, the percentage of members with the new definition of losses will probably be closer to the upper quartile. In a written reply to parliament, Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam said the investment performance could have been adversely influenced by the volatility and overall decline of equity markets during this period. The risks lie in ......