McMASTER UNIVERSITY
Contributory Pension Plan for Salaried Employees
RATE OF RETURN FOR YEAR  ENDING JUNE 30, 2008
(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
  
54,329
  37,708 
    3,133 
  (133,467)  

  (38,297)
 
49
57
   -   
 (150)   

(44)

  

54,378
37,765
  3,133
(133,617)  

(38,341)
Expenses
Administrative Expenses
Audit Fee
Investment Manager Fees
Pension Filing and Assessment Fees
Professional Fees
Trustee and Custodial Fees
 		  

256
  19
2374  
  38
423
177

3,287  

  

-
-
  3
-
34
  2

 39

  

 256
   19
   2,377    
   38
   457 
     179   

    3,326   
Net Income
(41,584)   
(83)
(41,667)
Net Assets Market Value June 30, 2007
Net Assets Market Value June 30, 2008
1,046,436
1,004,197
1,182
1,158
1,047,618
1,005,355

 
 
2008 Rate of Return (1) =                          (41,667)                        
  1/2 (1,047,618 +1,005,355 + 41,667)
  =    (3.98)%

 
Calculation of Five Year Average
%
2008 Rate of Return
2007 Rate of Return
2006 Rate of Return
2005 Rate of Return
2004 Rate of Return

Total Return for Last Five Years
  (3.98)  
14.45 
  5.93
10.00
14.84

41.24
     
Five Year Annual Average Return (Total Return / 5) =                                      8.25%
Rate of Return in Excess of 4.5% (8.25% - 4.5%) =                                      3.75%
Average CPI to June 30, 2008 =                                      2.18%
Increase to Pensions =                              2.18%
(1) Formula as established
(2) Amounts as reported on June 30, 2008 Audited Statements
(3) Per June 30, 2008 internal financial statements