PENSION NEWS

An information bulletin about the York University Pension Plan

June 1 1997.

FIRST QUARTER 1997 RESULTS


For the first quarter year ending March 31 1997, the before expense return of the York Pension Fund was .7%. Comparing our fund to 100 similar balanced funds, SEI ranked us in 48th place. The Toronto Stock Exchange 300 Composite Index for this same period had a return of -.8%.

FINAL 1996 RETURN


The after expenses return of the fund for 1996 was 17.3443 %.See also an analysis of returns to the end of 1996 A comparison of the 1996 return with other funds was given in the March Pension News Bulletin where the estimate of 17% was used because the correct return was not yet available at the time of printing.

PENSION SURPLUS

At the end of 1996 the surplus was $47.6 million.

PENSION INCREASE AS OF JANUARY 1 1997

As of January 1 1997 pension payments have been increased by 6.5525%. For a detailed explanation see the actual calculation of the 1997 increase

NEW MANAGEMENT AND ASSET MIX OF FUND


The approximately $700million in the York Pension Fund is until now managed by three fund managers, Sceptre Investment Counsel managing 50% of fund ( $350 million) , Altamira Management Ltd with 25% ($175 million) and Gryphon Investment Counsel Inc. with 25% ($175 million). Each is a balanced fund, that is, a portfolio balance between bonds, debentures, and stocks. The Sub-Committee on Investment Performance of the Board of Trustees of the fund, after an extensive ten month review and study of the long term investment policy and objectives of the fund , recently recommended to the board of trustees that the services of Altamira and Gryphon be terminated , that Sceptre continue its management as before and that the structure of the fund management be changed from totally balanced to a combination of "specialized active" and "passive" fund management. Active management means ,for example, that the managers of Canadian stocks try to outperform accepted indices such as The Toronto Stock Exchange 300 Index. Passive management attempts to match the returns of the index.

The members of the of the Sub-Committee on Investment Performance of the Board of Trustees in include R. Martin, chair, L.Heisey, T. Price who are members of the Board of Governors of York, M. Abramson, Y.U.F.A., P. Clark, Vice-President, Administration, B. Farr ,retired, B. Mullick, Secretary, and B. Small, retired. At their respective meetings of May 22, 1997 and May 26, 1997, the Board of Trustees for The Pension Fund and the Board of Governors of The University ,in turn, accepted the recommendations of the subcommittee. As a result we have the management of the York Pension Fund is as follows:


The contents and interpretations given in this newsletter are those of Morton Abramson, Professor in the Department of Mathematics and Statistics and member of the Board of Trustees of The York Pension Fund. If you have comments or questions, please contact Prof. Abramson at Dept. of Maths. N505R, X66087, or at abramson@mathstat.yorku.ca. Other Pension information can be found at http://www.math.yorku.ca/Who/Faculty/Abramson/Fund.