York University Fund Rate of Return for 1996- Some comments

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Morton Abramson

Feb. 20 1997

The before expenses rate of return for 1996 for the York Pension Fund was, subject to audit, approximately 17.6%. I estimate that after expenses, the rate was approximately 17%.
Click on

York Pension Fund

for a summary of the rates of return to the end of 1996.

For 1996, the TSE 300 was up 28.4% and the ScotiaMcleod Bond Universe Index was up 12.3%.

The York Pension Fund is a balanced Fund with approximately 40% in Canadian equities (stocks), 40% in Canadian debt securities (bonds) and 20% in Foreign investments. The actual investment decisions for the Fund are made by three professional management companies and the performance of the Fund is monitored by a sub-committee of the Board of Trustees of the Fund.

A rate of 17% on an absolute basis may seem on the high side but according to SEI, a rating service that the Fund employs to compare performance, the York Fund rated relatively low for 1996 with other similar but not identified Funds. The reason was identified to be the weak performance of one of the three management companies.

In my summary, click on

Comparison of rates of return to end of 1996 with some other funds

I include a comparison of the York fund with "top funds" as rated in the Globe and Mail's 15-Year Mutual Fund Review of February 6, 1997. As can be seen, the performance of the York fund (a balanced fund) over the past 14 years (since 1983 when the fund was evaluated on a calendar year) is favourable when compared to two of the best Canadian Balanced Funds as rated by the Globe and Mail. Canadian Balanced Funds are those, " in which the primary objective is to combine growth with in come and price stability. These aim to maintain a portfolio balance between bonds, debentures, and preferred and common stocks."

I also give a comparison of York's fund to other Funds using moving 4 year equivalent compounded yearly returns, i.e. the equivalent yearly compounded return for $1 invested 4 years prior to the end of the given year.