Canadian pension plan experience ninth positive quarter
02 August 2018 Toronto
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Canadian pension plans and university endowments reported an increase of 2.16 percent in returns during Q2 of 2018, marking their ninth straight quarter of positive results.
The BNY Mellon Canadian Master Trust Universe, which tracks the fund activities of 83 Canadian corporate, public, and university pension plans, noted a one-year return of 7.59 percent, while the median 10-year annualised return was 7.14 percent.
Canadian equity posted the highest median plan return in Q2 2018, at 5.48 percent, just slightly ahead of US equity. They reported a median return of 5.24 percent.
Elsewhere, real estate experienced a median return of 2.38 and Canadian Universities saw a quarterly median return of 2.05 percent.
Catherine Thrasher, strategic client solutions and global risk solutions of CIBC Mellon and BNY Mellon, commented: "All Canadian plans had positive returns in the Q2 of 2018.”
“Canadian Foundations and Endowments posted a positive median return of 2.61 percent in Q2, and 2.46 percent since the start of 2018. Most asset classes posted positive returns for the quarter.”
Thrasher added: “International and non-Canadian equity medians returned 0.44 percent and 2.31 percent respectively, assisted by the declining value of the Canadian dollar. Emerging markets was the only asset class that recorded a negative median return at minus 6.20 percent. fixed income produced a median quarter return of 0.74 percent.”
The BNY Mellon Canadian Master Trust Universe, which tracks the fund activities of 83 Canadian corporate, public, and university pension plans, noted a one-year return of 7.59 percent, while the median 10-year annualised return was 7.14 percent.
Canadian equity posted the highest median plan return in Q2 2018, at 5.48 percent, just slightly ahead of US equity. They reported a median return of 5.24 percent.
Elsewhere, real estate experienced a median return of 2.38 and Canadian Universities saw a quarterly median return of 2.05 percent.
Catherine Thrasher, strategic client solutions and global risk solutions of CIBC Mellon and BNY Mellon, commented: "All Canadian plans had positive returns in the Q2 of 2018.”
“Canadian Foundations and Endowments posted a positive median return of 2.61 percent in Q2, and 2.46 percent since the start of 2018. Most asset classes posted positive returns for the quarter.”
Thrasher added: “International and non-Canadian equity medians returned 0.44 percent and 2.31 percent respectively, assisted by the declining value of the Canadian dollar. Emerging markets was the only asset class that recorded a negative median return at minus 6.20 percent. fixed income produced a median quarter return of 0.74 percent.”
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