Statistics Canada says the market value of Canadian employer-sponsored pension funds rose for the fourth consecutive quarter, totalling $1.4 trillion at the end of the second quarter.
The value of bond holdings increased 4.2%, while investments in real estate assets grew 3.3%. The value of mortgages rose 2.4%, and stocks edged up 0.1%.
Foreign investments in Canadian pension funds accounted for 32.8% of total pension fund assets.
Pension fund revenue grew 2.2% in the second quarter to $40.2 billion. Declines in employer contributions (-4.2%) and profits from the sale of securities (-8.6%) were offset by a 13.7% increase in investment income.
Expenditures declined 4.1% in the second quarter. With the increase in pension fund revenue, net income grew 7.2% to $23.5 billion.
More than 6.2 million Canadian workers are members of employer-sponsored pension plans. Of this group, 5.2 million (83.6%) workers belong to pension plans with assets managed by trusteed funds. The remaining members have assets managed by insurance company contracts.
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