The market value of Canadian employer-sponsored pension funds totalled $1.4 trillion at the end of the first quarter, up 5.3% from the previous quarter, according to Statistics Canada.
Pension fund investments in stocks grew 4.8% in the first quarter, surpassing the 4.6% gain in the value of shares on the Toronto Stock Exchange for the same period. The value of bond holdings increased 5.1%, while investments in real estate assets grew 3.8%.
The value of foreign investments held in Canadian pension funds increased 5.2% in the first quarter and accounted for 33.9% of total pension fund assets.
Pension fund revenue fell 6.9% to $39.3 billion in the first quarter, as a result of lower employer and employee contributions and reduced investment income. Pension fund revenue typically increases in the fourth quarter, with special payments made by employers to cover pension liabilities and the receipt of year-end dividend payments.
Expenditures declined 3.7% in the first quarter, but with reduced revenues, net income fell 9.3% to $21.9 billion.
More than 6.2 million Canadian workers are members of employer-sponsored pension plans. Of this group, 5.2 million 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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