02 August 2017
Reporter: Jenna Lomax

Canadian pension plans experience fifth positive quarter

Canadian pension plans and university endowments reported an increase of 1.53 percent in returns during Q2 2017, marking their fifth straight quarter of positive results.

The BNY Mellon Canadian Master Trust Universe, which tracks the fund activities of 90 Canadian corporate, public and university pension plans, noted a one-year return of 9.62 percent, which was also above the 10-year annualised return of 6.1 percent.

Canadian pension plans posted the highest median return in Q2 2017, at 1.53 percent, just slightly ahead of Canadian universities. They reported a median return of 1.43 percent.

Catherine Thrasher, managing director of global risk solutions in Canada at BNY Mellon Asset Servicing, attributed this growth to “higher allocations to outperforming international equities”. Non-North America equities posted the highest median results for the quarter at 3.77 percent.

Elsewhere, real estate experienced a median return of 1.72 percent, but Canadian equities saw a quarterly median return of minus 1.31 percent.

Responding to the overall positive growth, Tim Rourke, vice president and segment lead for pensions and asset owners at CIBC Mellon, said: “The detailed sub-asset class information offered in the BNY Mellon Canadian Master Trust Universe can be of value to Canadian pension plans and university endowments, in identifying macro allocation trends and helping to make informed decisions.”

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