Message From The President Highlights It's A Defined Benefit Plan Sources Of Funding Buyer Beware Cost-Of-Living Adjustments Membership Benefit Changes Pension Commmittee Investment Committee Asset Mix Investments At December 31, 2000 Asset Types Investment Managers Custodian/Trustee Pension Plan Performance Financial Statements

You are in: The Plan : Publications : 2000 Annual Report : Assets Types   Asset Types Real Estate: investment in buildings and property. Investment earnings come from lease and rental income as well as capital appreciation if property values increase. Equities: primarily common shares in Canadian and foreign companies. Equity income is generated by an increase in the share value or dividends paid. Over long periods of time, equities have historically had the highest returns, but with the greatest year-to-year differences in returns (volatility). Bonds and Debentures: investments in federal, provincial and corporate bonds. These typically have semi-annual interest payments. Bonds have more stable rates of return than equities, but also produce lower rates of return over longer periods of time. Mortgages: primarily high quality mortgages on Canadian residential and commercial properties. Mortgage investments generate income from interest payments. Short-term Investments: securities that mature within days, weeks or months (such as Government of Canada treasury bills). These investments generate income from interest payments and their returns go up and down with inflation over the long term. Copyright 2004. All rights reserved.