McMASTER UNIVERSITY
Contributory Pension Plan for Salaried Employees
RATE OF RETURN FOR YEAR  ENDING JUNE 30, 2012
(in thousands of dollars)


Income Plan 2000
(2)		 Original Plan
(3)		 Total
Investment Income
Net Realized Gain (Loss) on Sales of Units in the Master Trust Fund
Change in Net Unrealized Gain in Investments
30,473
     175
     16,111    

  46,759
44
 (2)
  25 

 67
30,517
     173
 16,136 

 46,826
Expenses

Investment Managers
Professional
Administrative
Trustee and Custodial
Pension Filing
Audit
 

 
2,837
  687
   270 
  176
   30
   17

4,017 
4
55 
 -
 2
  -
  -

61
 2,841
   742
   270
  178
    30
    17

 4,078 
Net Income (Loss)
 42,742 
  6
42,748 
Net Assets Market Value June 30, 2011
Net Assets Market Value June 30, 2012
 1,106,300
 1,156,557
1,538
1,690
1,107,838 
1,158,247 

 
 
2012 Rate of Return (1) =                            42,748                       
  1/2 (1,107,838 + 1,158,247 - 42,748)
  =    3.85%

 
Calculation of Five Year Average
%
2012 Rate of Return
2011 Rate of Return
2010 Rate of Return
2009 Rate of Return
2008 Rate of Return

Total Return for Last Five Years
 3.85
14.95 
 6.47
(11.69) 
   (3.98)  

 9.60 
     
Five Year Annual Average Return (Total Return / 5) =                                      1.92%
Rate of Return in Excess of 4.5% (1.92% - 4.5%) =                                     (2.58%)
Average CPI to June 30, 2012 =                                      2.39%
Increase to Pensions =                              0.00%
(1) Formula as established
(2) Amounts as reported on June 30, 2012 Audited Statements
(3) Per June 30, 2012 internal financial statements