Endowment Payout Rate for 2010-11, payable in April, 2011

PDADC#62, 2010-11


 Divisional Business Officers via AMS listserv
 Divisional Financial Officers via DFO listserv
 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.

More information on endowments is available in the endowment annual financial report, which is accessible at http://www.finance.utoronto.ca/alerts/endowrpts.htm. If you have any questions about the payout for this year, please contact Helen Choy, Manager Accounting Services, at 416-978-2981. The annual payout for 2011 will be distributed by Monday April 18, 2011.