Canadian defined benefit pension plans posted a median 1.7 per cent return in the third quarter of 2019, down from 2.7 per cent in the previous quarter, according to the latest RBC Investor and Treasury Services’ universe.
In comparison to the same quarter last year, the returns represent an improvement, with DB plans posted a meagre 0.1 per cent return during the third quarter of 2018.
Read: Pooled pension fund managers see modest gains for Q3 2019
“While markets remain volatile, the ongoing trade tensions between the U.S. and China, in addition to the geopolitical turbulence surrounding Brexit, continue to propel very modest pension plan returns,” said Ryan Silva, director of client coverage for RBC Investor and Treasury Services, in a press release.
“Plan sponsors are encouraged to consider taking a defensive approach to lower investment risks, such as moving into private assets, blue chips and other relatively safe investments with stable track records,” he added.