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A Healthy Future Year in Review MD&A Financials Governance
FINANCIALS
    Highlights
    Consolidated Financial Statements  
    Significant Investments  
    Ten-Year Review  
  Investment vs. Benchmark Returns  

(Unaudited)

The one-year returns for investment and the related benchmark, by investment portfolio, are as follows:

Year ended December 31

2007 2006
Rate of return(net of fees) Investment
Returns %
  Benchmark
Returns %
    Investment
Returns %
  Benchmark
Returns %
       
Fixed income      
Short-term securities
Bonds
4.95   4.43     4.44   3.97
Canadian
4.29   3.68     3.89   4.06
Long bonds
3.41   3.44     3.77   4.08
Real return
2.12   2.12     (2.30)   (2.30)
       
Equity      
Canadian
11.06   11.14     19.82   19.16
Non-Canadian
(6.13)   (5.89)     19.91   20.74
                 
Equity-oriented                
Real estate
22.65   15.95     27.91   18.24
Private equity
17.49   6.75     16.01   7.00
NET INVESTMENTS* 6.23   4.78     12.79   11.88

* Includes derivative related return enhancement strategies

The Plan identifies benchmarks to evaluate the investment management performance. The performance of each asset class is measured against benchmarks that simulate the results based on the investment strategies employed by the investment managers identified for the asset class.

The total Plan return is measured against a Canadian dollar-denominated composite benchmark produced by aggregating returns from each of the policy asset class benchmarks.