Report Details

PERFORMANCE ANALYTICS & CUSTODIAL SERVICES

The LTD Plan investments are managed by KBSH Capital Management Inc., with Canadian equity and bonds invested in segregated asset holdings, and non-Canadian equity in pooled fund investments. The custodial and accounting services are provided by CIBC Mellon Global Security Services Company. Performance measurement services are provided by BNY Mellon Asset Servicing.

The returns as at December 31, 2008, are outlined in the graph below.

* NSPS LTD Policy consists of: 30% S&P/TSX Capped Composite Index, 12.5% S&P 500 Index, 12.5% MSCI EAFE Index, 40% DEX Bond Universe Index, 5% DEX 91 Day T-Bill.

In 2008, the LTD Plan investments returned -16.0% compared to the policy return of -14.6%. This was the second year in a row of underperformance. For all extended time periods the Plan has trailed below the benchmark.

Compared to other institutional investment plans, the one year results of the LTD Plan were slightly better than median investment plans within the BNY Mellon Canadian Master Trust Universe.

For the year, fixed income was the only positive performing asset class; however, the Plan was not able to match the benchmark DEX Bond Universe Index. This pattern has been the same over longer periods of time as well.

Canadian equity was the weakest asset class this year, and the LTD Plan underperformed compared to the S&P/TSX Capped Composite Index for the 3rd straight year. While international equity posted negative results in 2008, the LTD Plan was able to exceed the MSCI World Index. Up to the 4 year period, the international equity has performed better than the benchmark; however, the 2004 underperformance results pulled the 5 year period below the benchmark.