15 May 2017
Toronto
Reporter: Drew Nicol

Canadian pension fund win streak continues


Canada’s pension funds achieved a fourth consecutive quarter of growth, posting returns of 2.9 percent in Q1, according to RBC Investor & Treasury Services.

This year's Q1 returns far outstripped the 0.5 percent chalked up in Q4 2016 and set Canada’s pension industry up strongly to surpass last year’s annual return of 6.8 percent, as recorded in the All Plan Universe, which monitors $650 billion worth of Canadian pension assets.

Positive global economic conditions in Q1 2017 helped lift global equities in delivering a return of 6.2 percent, up from 3.0 per cent in Q4 2016.

The MSCI World Index reflected a similar trend, returning 5.8 percent for Q1 2017, up from 3.9 percent in Q4 2016.

Canadian equities bucked the trend in last quarter, with a returns of 2.3 percent, down from 5.7 percent in Q4.

Canadian fixed income assets rebounded in Q1, posting a return of 1.4 percent, compared to a loss of -3.4 percent in Q4 2016.

“Canadian pension plan returns, led by strength in Canadian and global equities, are off to a good start in 2017, however, vigilance is still required,” said James Rausch, head of client coverage for Canada at RBC Investor & Treasury Services.

“While ongoing business investment in Canada could spur growth, asset managers will undoubtedly be focusing on maintaining a diversified portfolio and actively managing their risk exposure in the period ahead given evolving macro-economic and political forces around the world.”

More news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
EXCLUSIVE: Sunil Daswani leaves Northern Trust
21 February 2018 | London | Reporter: Jenna Lomax
Sunil Daswani, head of international securities lending at Northern Trust has left the company
Top of hot stocks: TechnipFMC PLC and Match
21 February 2018 | London | Reporter: Jenna Lomax
TechnipFMC PLC, formed by the merger of oil services companies, led the FIS Astec Analytics hot stocks list for EMEA last week
ISLA responds to BMF’s draft circular
20 February 2018 | London | Reporter: Brian Bollen
The International Securities Lending Association (ISLA) has sent a letter to the German Ministry of Finance responding to the BMF’s draft circular released on 25 January 2018 on the subject of a manufactured dividend rule
SBL Network welcomes independent consultant
20 February 2018 | London | Reporter: Jenna Lomax
SBL Network Limited has appointed Charlotte Clout as an independent consultant
Fidessa sees revenue growth across all regions in 2017
20 February 2018 | London | Reporter: Jenna Lomax
Fidessa has reported that its yearly revenue increased by 7 percent for 2017, ending the year with £353.9 million compared to £331.9 million in 2016
Foreign investment in US down
19 February 2018 | Washington DC | Reporter: Brian Bollen
Official figures, released 15 February, by the US Department of the Treasury show a drop in foreign investment in the US in December
Minium, IBM and Promontory release joint white paper
19 February 2018 | London | Reporter: Jenna Lomax
The patchwork of outdated systems most firms use today is not fit for purpose, according to a white paper jointly released by Minium, IBM and Promontory