RATE  OF  RETURN & BENCHMARKS

 We are pleased that our Rate of Return exceed the benchmarks.

A) Our Return On Investment (ROI) target is benchmarked to the average return of a 5 year GIC.

Our goal is to obtain returns as such:

5yr GIC rate + 2% (this would be the minimum required)

Our historical data and operating results for the Model Portfolio (1998 - 2010) have produced an average ROI of:

9.8% 

This is 3.9% above our target.

These are audited results.

The real value of the program becomes more apparent when you compare its performance to that of the alternatives in the marketplace.

 

B) Another benchmark we look at is the Real Return (RR), which is the return after inflation. It should be a minimum of 3%.

Our RR for the same period is 7.8%.

 

C) We also benchmark our Portfolio results with a well known and well managed large Pension Fund. We choose OMERS (Ontario Municiple Employees Retirement System). When we compare their average return for the 1998-2010 period they averaged 7.2%. As noted above we averaged 9.8%.

 

NOTES:

 There are three ways to use your money.

1) SAVE

2) INVEST

(cash-flow) (money you recieve as a result of owning an asset)

3) SPECULATE

(money you recieve when you sell an asset)

THE ONLY WAY THAT INTERESTS US IS  No. 2) INVEST.