McMASTER UNIVERSITY
Contributory Pension Plan for Salaried Employees
RATE OF RETURN FOR YEAR  ENDING JUNE 30, 2010
(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 Gain/(Loss) in Investments

28,310
      50
   (4,730) 
  37,564 

  (61,194)

  

36

  (6)
  43 

 73

28,346
      50
 (4,736)
 37,607 

61,267
Expenses

Investment Manager Fees
Professional Fees
Administrative Expenses
Trustee and Custodial Fees
Pension Filing
Audit Fee
 

 
2,374
  509
   262 
  147
   42
   16

3,350 
3
45 
 -
 2
  -
  -

50
 2,377
   554
   262
  149
    42
    16

 3,400 
Net Income (Loss)
57,844 
23
57,867
Net Assets Market Value June 30, 2009
Net Assets Market Value June 30, 2010
 889,757 
954,192 
1,077 
1,249 
890,834 
955,441 

 
 
2010 Rate of Return (1) =                          57,867 
  1/2 (890,834 + 955,441-57,867)
  =    6.47%

 
Calculation of Five Year Average
%
2010 Rate of Return
2009 Rate of Return
2008 Rate of Return
2007 Rate of Return
2006 Rate of Return

Total Return for Last Five Years
6.47
(11.69) 
(3.98) 
14.45 
  5.93 

11.18 
     
Five Year Annual Average Return (Total Return / 5) =                                      2.24%
Rate of Return in Excess of 4.5% (2.24% - 4.5%) =                                     (2.26%)
Average CPI to June 30, 2010 =                                      1.70%
Increase to Pensions =                              0.00%
(1) Formula as established
(2) Amounts as reported on June 30, 2010 Audited Statements
(3) Per June 30, 2010 internal financial statements