November, 2010
To:
Members of the Research Pension Plan
From:
Research Pension Plan Committee
REPORT TO PLAN PARTICIPANTS
Since June of 2009, the Committee has met 9 times. The Committee conducted an annual
review of the Statement of Investment Policies and Procedures, reviewed the investment
performance of the plan on a quarterly basis, and met with investment managers of the Plan
throughout the year. The investment policy for the Research Pension Plan may be accessed at
www.usask.ca/fsd under Faculty & Staff/Pension Plans.
As part of the ongoing information and communication strategy, the Research Pension Plan
Committee partnered with Sun Life Financial to circulate six newsletters dealing with financial
planning and investment strategies. These newsletters can be viewed at the above mentioned
link under Pension News. The Research Committee, together with Sun Life Financial,
organized interactive investment workshops in October, 2009 and most recently in October,
2010 to familiarize members with the principles of building an investment portfolio. Retirement
planning workshops were held on February 23rd and 24th, 2010.
Another initiative of the Committee was to develop a communication and information plan for the
Plan, in conjunction with Sun Life. In response to a proposal from the University, the Committee
agreed to the establishment of education sessions for members of the Research Pension Plan
Committee to help ensure that these members exercise their oversight duties in an informed
manner. These sessions were held in November 2009.
Investment Performance of the Plan
As Plan members have differing risk preferences, the Plan makes several investment options
available to members. These options allow members to select segregated funds with a mix of
underlying assets that meets their investment needs. Members are reminded of their
responsibility to review periodically the portfolio structure of their participation in the
Plan and to revise it as appropriate given their needs. The investment risk profiler, provided
on the Sun Life member website, helps to determine the type of investor you are, and provides
information to help you understand risk, the benefits of diversification and develop an
investment mix to match your goals.
Stock markets around the world began to rebound off of their lows of early 2009. Investment
declines of 2008 and early 2009 were somewhat mitigated in the rebound that occurred during
the balance of the year. While in 2008, the Life Cycle Funds did provide some protection
relative to their benchmarks they also participated in the rebounds in 2009. The benchmark
portfolios for each of the funds have been determined using the actual returns of the market
indexes such as the S&P/TSX Capped Composite Index, Standard and Poor’s 500 U. S. Stock
Index, Morgan Stanley Europe, Australia and Far East Index, DEX Universe Bond Index and 91Day Canadian Treasury Bills.
The following is a summary of the Plan’s investment performance as at September 30, 2010
exclusive of investment expenses:
The total fund investment performance is summarized below:
Fund Performance (gross)
Money Market
Benchmark
Total fund
Bond Fund
Benchmark
Total fund
Conservative Life Cycle Fund
Benchmark
Total fund
Balanced Life Cycle Fund
Benchmark
Total fund
Aggressive Life Cycle Fund
Benchmark
Total fund
Canadian Equity Fund
Benchmark
Total fund
U.S. Equity Fund
Benchmark
Total fund
Non-North American Equity Fund
Benchmark
Total fund
One
Year
Four
Years
0.4%
0.6%
2.4%
2.6%
7.3%
7.4%
5.9%
5.8%
7.0%
7.1%
4.7%
4.8%
6.3%
6.4%
2.0%
2.6%
5.8%
6.0%
0.5%
1.3%
11.6%
8.8%
4.2%
4.7%
5.3%
5.3%
-3.8%
-3.8%
-1.3%
1.9%
-4.0%
-1.4%
The Sun Life member website at www.mysunlife.ca contains additional information about the
Plan’s performance. Additionally, you can access the Plan’s Financial Statements at
http://www.usask.ca/fsd.
Please contact the Pensions Office at 966-6633 or any member of the Research Pension Plan
Committee if you have any questions about the items covered.
The Research Pension Committee members are:
Doug Hassard (Plant Sciences)
Neil Johnson (CLS)
Carol Martel (VIDO)
Laura Kennedy (Financial Services)
Heather Fortosky (Pensions Office)
Steve Laycock (Human Resources)