In the third quarter of 2013, the market value of Canada’s employer-sponsored pension funds grew 3.1% to $1.3 trillion, according to Statistics Canada.
Pension fund investments in stocks increased 2.9% in value in that quarter, exceeding the 1.9% rise in value of shares on the Toronto Stock Exchange for the same period. Bond holdings increased 3.4% in value and real estate assets grew 1.9%. Both mortgages (-3.0%) and short-term investments (-2.8%) declined during the quarter.
The value of foreign investments rose 2.1% in the third quarter of last year. The share of foreign investments held in Canadian pension funds accounted for 32.9% of total pension fund assets.
Pension fund revenues increased 6.7% as a result of profits from the sale of securities doubling in the third quarter. Reduced losses from the sale of securities lowered expenditures by 9.2%, which increased net income to $17.2 billion.
Employer and employee contributions totalled $12.9 billion in the third quarter. Benefits paid to retirees amounted to $11.9 billion.
Canada has 6.1 million workers who are members of employer-sponsored pension plans. Of this group, 5.1 million workers are members of trusteed plans. The remaining 1.0 million members are with employer pension plans that are managed principally by insurance company contracts.
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