Endowment Payout Rate for 2010-11, payable in April, 2011
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|From:||Sheila Brown, Chief Financial Officer|
|Date:||March 16, 2011|
|Re:||Endowment Payout Rate for 2010-11, payable in April, 2011|
The endowment payout rate for 2011 will be $7.41 per unit, a 2% inflation increase from last year's payout of $7.26 per unit, representing 4.65% of the opening market value of the endowments. This distribution will provide about $65.8 million to beneficiaries.
The actual investment return for the period May 1, 2010 to January 31, 2011 was 7.39%. While we do not yet know the actual return for the whole fiscal year, we are hopeful that it will be sufficient to continue to add to the preservation of capital, bringing us closer to the inflation protection required.
It is important to note that until the inflation protection is fully restored, this payout continues to be a one-year endowment spending allocation and does not predict what the payout per unit will be in future years.