Canadian defined benefit pension plans saw a median return of 0.42 per cent in the third quarter of 2018, according to BNY Mellon Asset Servicing’s universe of 81 corporate, public and university plans.
While not as robust as the previous quarters, the gains mark the tenth straight positive quarter, with the universe posting a one-year median return of 7.37 per cent.
“Of the Canadian investment plans, Canadian universities achieved the strongest performance, posting a median return in the third quarter of 1.10 per cent, and 3.45 per cent for the year-to-date,” said Catherine Thrasher, strategic client solutions and global risk solutions for CIBC Mellon and BNY Mellon, in a press release. “Canadian foundations and endowments posted a positive median return of 0.63 per cent in the third quarter and 2.92 per cent since the start of 2018.
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“Asset classes posted mixed results for the quarter. U.S. equity was the top-performing asset class with a median quarterly return of 4.69 per cent, reflecting an optimistic view of the U.S. economy,” she added. “International and non-Canadian equity medians were mixed, at -0.39 per cent and 1.77 per cent, respectively. Emerging markets recorded the lowest median return at -3.02 per cent. Fixed income median performance was also negative, with a quarterly median return of -1.29 per cent.”
Notably, larger scale plans with more than $1 billion under management outperformed the universe overall.
Read: Defined benefit pension returns flat in third quarter: surveys