McMASTER UNIVERSITY
CONTRIBUTORY PENSION PLAN FOR SALARIED EMPLOYEES
RATE OF RETURN FOR YEAR  ENDING JUNE 30, 2005


Income Plan 2000 Original Plan  Total
Investment Income
Net Realized Gain on Sales of Investments 
Net Realized Gain on Sales of Units in the Master Trust
Net Realized Gain on Transfer of Investments to the Salaried Plan
Change in Net Unrealized Gains
 
 		   11,715,298
  14,080,890
    4,585,880
                  0
  51,204,141

  81,586,209

         180,972
        145,336 
          14,869 
     1,574,957
       -631,124

     1,285,010

  11,896,270
 14,226,226
   4,600,749
   1,574,957
 50,573,017

 82,871,219
Expenses
Administrative Expenses
Audit Fees
Pension Filing and Assessment Fees
Professional Fees
 
 		        216,672
         14,250
       429,450
    1,900,823

    2,561,195

             3,488
            8,550
         -14,590
          42,611

          40,059

       220,160
        22,800
      414,860
   1,943,434

    2,601,254
Net Income
   79,025,014      1,244,951   80,269,965

Net Assets Market Value June 30, 2004
Net Assets Market Value June 30, 2005
798,798,980
 873,523,737
   11,563,461
     1,378,022
 810,362,441
 874,901,759

 
 
2005 Rate of Return  =                                80,269,965                            
  1/2 (810,362,441+ 874,901,759 - 80,269,965)
  =    10.00%

 
Calculation of Five Year Average
%
2005 Rate of Return
2004 Rate of Return
2003 Rate of Return
2002 Rate of Return for 6 months (January 1/02 to June 30/02) 
2001 Rate of Return
2000 Rate of Return for 6 months (July 1/00 to December 31/00) 

Total Return for Last Five Years

   10.00
  14.84
   (2.57)
   (2.81)
    1.14
    2.84

  23.44
     
Five Year Annual Average Return (Total Return / 5) =     4.69%
Rate of Return in Excess of 4.5% (4.69% - 4.5%) =     0.19%
Average CPI to June 30, 2005 =     2.08%
Increase to Pensions =    0.19%