Analysis of returns on GIC\'s versus stock markets and gold during the first decade of 2000\'s.

1. Decade 2000's Comparison GIC to Growth Investing
The following is an analysis comparing GIC returns over the last decade to stock market returns:
Date 5Yr Value Cumul TSX Value Cum Blend Value Cumul
GIC Rtn Return Rtn 50%TSX-50%DJIA Rtn
Jan 1/00 5% 1,000,000.00$ 10% 1,000,000.00$ 4% 1,000,000.00$
Jan 1/01 5% 1,050,000.00$ 5% -18% 1,100,000.00$ 10% -9% 1,037,259.06$ 4%
Jan 1/02 5% 1,102,500.00$ 10% -14% 902,000.00$ -10% -16% 940,351.97$ -6%
Jan 1/03 5% 1,157,625.00$ 16% 30% 775,720.00$ -22% 16% 788,931.41$ -21%
Jan 1/04 5% 1,215,506.25$ 22% 8% 1,008,436.00$ 1% 2% 916,740.10$ -8%
Jan 1/05 4% 1,276,281.56$ 28% 30% 1,089,110.88$ 9% 13% 935,539.67$ -6%
Jan 1/06 4% 1,327,332.83$ 33% 9% 1,415,844.14$ 42% 13% 1,053,301.78$ 5%
Jan 1/07 4% 1,380,426.14$ 38% 1% 1,543,270.12$ 54% -4% 1,189,082.67$ 19%
Jan 1/08 4% 1,435,643.18$ 44% -34% 1,558,702.82$ 56% -27% 1,137,539.93$ 14%
Jan 1/09 4% 1,493,068.91$ 49% 35% 1,028,743.86$ 3% 19% 833,212.77$ -17%
Jan 1/10 1,552,791.67$ 55% 1,388,804.21$ 39% After Fees: 987,380.53$ -1%
Variance Over 10 Yrs. To GIC: 163,987.46-$ 363,987.46-$ 565,411.14-$
-11% -23% -36%
DJIA Value FX Adj Cumul Rtn/Yr Gold Value Cumul
US$ CD/US FX (CDN$) Rtn w/Foreign Exch CDN Rtn
-6% 692,856.65$ 1.4433 1,000,000.00$ -6% 1,000,000.00$
-7% 651,285.25$ 1.4963 974,518.12$ -3% -3% 13% 940,000.00$ -6%
-17% 605,695.28$ 1.5979 967,840.49$ -3% -1% 20% 1,062,200.00$ 6%
25% 502,727.09$ 1.5747 791,644.34$ -21% -18% 2% 1,274,640.00$ 27%
3% 628,408.86$ 1.2900 810,647.42$ -19% 2% -2% 1,300,132.80$ 30%
-1% 647,261.12$ 1.2036 779,043.49$ -22% -4% 7% 1,274,130.14$ 27%
16% 640,788.51$ 1.1571 741,456.39$ -26% -5% 24% 1,363,319.25$ 36%
6% 743,314.67$ 1.1649 865,887.26$ -13% 17% 24% 1,690,515.88$ 69%
-34% 787,913.55$ 0.9927 782,161.78$ -22% -10% 18% 2,096,239.69$ 110%
19% 520,022.95$ 1.2107 629,591.78$ -37% -20% 10% 2,473,562.83$ 147%
618,827.30$ 1.0378 642,218.98$ -36% 2% 2,720,919.11$ 172%
Variance Over 10 Yrs. To GIC: 910,572.69-$ 1,110,572.69-$ After 1,168,127.44$
-59% -72% Fees 75%
Notes: Fees on $1 million/yr. is about 2% or $20,000 per year (exluded in analysis) - TOTAL FEES are $200,000.00; taxes not accounted for

2. Summary: 1/1/00 to 1/ 1/10; Start $1 mill GIC TSX DJIA Blended Gold
Note: Value: 1,552,791.67$ 1,388,804.21$ 642,218.98$ 987,380.53$ 2,720,919.11$
Excl. Fees Amount < or > GIC: 163,987.46-$ 910,572.69-$ 565,411.14-$ 1,168,127.44$
% Differnce GIC: -11% -59% -36% 75%
Summary Points: 1. Gold outperformed all securities by a wide margin
2. Worst persorming asset class was the US stock market, especially after considering foreign exchange and fees
3. Canadian stock market still underperformed GIC's by over 10% or potentially over 20% with fees