09 August 2017
Toronto
Reporter: Jenna Lomax

Canadian pension fund growth spurt continues


Canadian pension plans reported an increase of 1.4 percent during Q2, marking their fifth consecutive quarter of positive returns, according to RBC Investor & Treasury Services (I&TS).

The RBC I&TS All Plan Universe, which currently tracks the performance and asset allocation of over $650 billion in assets under management across Canadian defined benefit, secured gains, despite seeing negative growth some investment lines.

Canadian equities struggled during Q2, with a drop off of -1.9 percent in investments, compared to a 2.3 percent increase in Q1.

Pension fund investments mirrored positive global economics, such as encouraging signs of a stable recovery in Europe and healthy quarterly earnings—one indication was an investment increase of 2.9 percent in Q1 2017 compared to a zero percent increase in Q1 2016.

The RBC I&TS All Plan Universe’s latest data revealed that, after their foray into negative territory in Q4 2016 (-3.4 percent), Canadian fixed income returns consolidated their recovery from the previous quarter, again posting gains of 1.4 percent.

James Rausch, head of client coverage for Canada at RBC I&TS, said: “Despite positive economic indicators of a healthy Canadian economy, depressed energy and commodities were amongst the poorest performing sectors to drag on domestic equities.”

“Nevertheless, Canadian pension fund managers have continued to prudently manage portfolio allocations, remaining underweight in Canadian equities compared to domestic fixed income and global equities and generating yet another positive overall return for the quarter."

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
Pension plans accuse banks of anti-competitive behaviour
18 August 2017 | New York | Reporter: Drew Nicol
Three US pension plans have accused six of securities lending’s biggest banks of blocking nascent platforms and keeping the market for themselves
Repo passes judgement on MMF collateral rules
18 August 2017 | Brussels | Reporter: Drew Nicol
Thirteen industry stakeholders made up of major global banks and industry associations responded, with largely positive feedback on ESMA’s proposals
UBS expands securities lending team
17 August 2017 | Zurich | Reporter: Drew Nicol
UBS’s has regained Iwan Lichtsteiner as a member of its fixed income, securities lending and financing team, effective from October
Clearstream angling for central role in China’s market growth
17 August 2017 | Luxembourg | Reporter: Drew Nicol
Deutsche Börse Group and Clearstream representatives will be present at the Shanghai International Financial Advisory Council being at the end of August
Whitebox Advisors chooses Broadridge suite solution
17 August 2017 | New York | Reporter: Drew Nicol
Whitebox Advisors has mandated Broadridge Financial Solutions to transform its technology platform into a fully integrated, hedge fund operation
Clearstream confirms rates for September
16 August 2017 | London | Reporter: Jenna Lomax
The market infrastructure provider charges different rates for equities and debt, and on a per currency basis
CloudMargin unveils microsite for OTC derivatives
15 August 2017 | London | Reporter: Jenna Lomax
The new microsite, designed by UK-based design agency Eight Arms, was created to help financial institutions globally become accustomed to the new margin rules and other regulations affecting their collateral management functions