Note 4. Investment Income
a) Investment income, before allocating the effect of derivative
contracts and realized and unrealized gains and losses to asset classes,
for the year ended December 31 is as follows:
 |
| ($ Millions) |
2007 |
|
2006 |
 |
| |
|
|
| Fixed income |
|
|
| Cash and short-term securities |
$ |
36 |
|
|
$ |
28 |
| Bonds |
|
|
|
|
|
|
|
|
1,156 |
|
|
|
931 |
|
|
460 |
|
|
|
255 |
|
| |
|
1,652 |
|
|
|
1,214 |
|
| |
|
|
| Equity |
|
|
|
|
8 |
|
|
|
7 |
|
|
1,500 |
|
|
|
730 |
|
| |
|
1,508 |
|
|
|
737 |
|
| |
|
|
|
|
|
|
| Equity-oriented |
|
|
|
|
|
|
| Net real estate operating income [note
4b] |
|
180 |
|
|
|
153 |
| Private equity and special situations |
|
38 |
|
|
|
28 |
|
| |
|
218 |
|
|
|
181 |
|
| |
|
|
| |
|
3,378 |
|
|
|
2,132 |
| Net realized gains/(losses) on investments2 |
|
(479) |
|
|
|
1,476 |
| Net change in unrealized losses on investments3 |
|
(1,151) |
|
|
|
(472) |
|
| |
|
|
|
|
|
|
|
| Total Investment Income |
$ |
1,748 |
|
|
$ |
3,136 |
|
| |
| 1Net of interest expense related to securities sold
under repurchase agreements of $94 million [2006: $18 million] |
| 2Includes net realized gains on derivatives of
$892 million [2006: $1,460 Million] |
| 3Includes net change in unrealized losses on derivatives
of $3 million [2006: $233 million] |
b) Real estate income
The Plan’s real estate income for the year ended December 31,
2007 is as follows:
|
 |
|
|
|
|
|
| ($ Millions) |
2007 |
2006 |
|
| |
|
|
|
| Rental revenue |
$ |
408 |
|
$ |
365 |
| Property operating & other expenses |
|
(189) |
|
|
(172) |
|
| Operating income |
|
219 |
|
|
193 |
| Mortgage interest |
|
(39) |
|
|
(40) |
|
| Net real estate operating income |
$ |
180 |
|
$ |
153 |
|
|
