McMASTER UNIVERSITY
CONTRIBUTORY PENSION PLAN FOR SALARIED EMPLOYEES
RATE OF RETURN FOR YEAR  ENDING JUNE 30, 2006
(in thousands of dollars)


Income Plan 2000
(2)		 Original Plan
(3)		 Total
Investment Income
Net Realized Gain on Sales of Investments 
Net Realized Gain on Sales of Units in the Master Trust Fund
Change in Net Unrealized Gains
 
 
  26,783
  75,071
    6,294
  (54,354)

  53,794
21
143 
   2 
(79)
  
87
26,804
75,214
  6,296
(54,433)

53,881
Expenses
Investment Manager Fees
Professional Fees
Administrative
Pension Filing and Assessment Fees
Trustee and Custodial Fees
Audit Fees
1,393
305
245
227
141
13

2,324
3
1
-
-
2
-

6
1,396
   306
   245
   227
   143
     13

    2,330
Net Income
51,470
81
51,551

Net Assets Market Value June 30, 2005
Net Assets Market Value June 30, 2006

873,524
912,846

1,378
1,467

874,902
914,313

 
 
2006 Rate of Return (1) =                          51,551                     
  1/2 (874,902+ 914,313 - 51,551)
  =    5.93%

 
Calculation of Five Year Average
%
2006 Rate of Return
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 for 6 months (July 1/01 to December 31/01) 

Total Return for Last Five Years
  5.93
10.00
14.84
 (2.57)
 (2.81)
  1.57

26.96
     
Five Year Annual Average Return (Total Return / 5) =     5.39%
Rate of Return in Excess of 4.5% (5.39% - 4.5%) =     0.89%
Average CPI to June 30, 2006 =     2.50%
Increase to Pensions =    0.89%
(1) Formula as established
(2) Amounts as reported on June 30, 2006 Audited Statements
(3) Per June 30, 2006 internal financial statements