Canadian pension plans posted solid gains in 2013 as global equity markets continued to surge during the fourth quarter.
Within the $460 billion RBC Investor & Treasury Services All Plan universe, DB pension assets returned 6.1% during the three months ending Dec. 31, 2013, bringing annual gains to 14.2%.
“Pensions gained a lot of traction in 2013,” says Scott MacDonald, managing director, pensions for RBC Investor & Treasury Services. “Strong equity gains and a weaker Canadian dollar led to an increase in assets, while higher long term bond yields reduced most plan liabilities, which will please sponsors.”
Foreign equity was the top performing asset class, rising 11.5% in the fourth quarter while bringing full-year results up 35.8%. Domestic stocks also helped, advancing 19.4% for the year, but were held back by the materials sector.
However, Canadian pensions had their largest annual fixed income decline since 1994, losing 1.3% over the last 12 months.
Related articles: