McMASTER UNIVERSITY
Contributory Pension Plan for Salaried Employees
RATE OF RETURN FOR YEAR  ENDING JUNE 30, 2007
(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/(Loss) in Investments		  

31,909
  60,479 
    5,856 
  36,751 

 134,995

27
117 
53 
 22 

219 

31,936
60,596
  5,909
36,773

135,214
Expenses
Administrative Expenses
Audit Fee
Investment Manager Fees
Pension Filing and Assessment Fees
Professional Fees
Trustee and Custodial Fees
250
  13
2056 
  (165) 
614
171

2,939 
-
-
  3
-
36
  3

 42
 250
   13
   2,059 
   (165) 
   650 
     174 

    2,981 
Net Income
132,056 
177
132,233
Net Assets Market Value June 30, 2006
Net Assets Market Value June 30, 2007
912,846
1,046,436 
1,467
1,182
914,313
1,047,618 

 
 
2007 Rate of Return (1) =                          132,233 
  1/2 (914,313+ 1,047,618 - 132,233)
  =    14.45%

 
Calculation of Five Year Average
%
2007 Rate of Return
2006 Rate of Return
2005 Rate of Return
2004 Rate of Return
2003 Rate of Return

Total Return for Last Five Years
  14.45 
  5.93
10.00
14.84
 (2.57)

42.65
     
Five Year Annual Average Return (Total Return / 5) =                                      8.53%
Rate of Return in Excess of 4.5% (8.53% - 4.5%) =                                      4.03%
Average CPI to June 30, 2007 =                                      1.72%
Increase to Pensions =                              1.72%
(1) Formula as established
(2) Amounts as reported on June 30, 2007 Audited Statements
(3) Per June 30, 2007 internal financial statements