Canadian pension funds benefited from solid equity market returns in 2006, according to a survey by RBC Dexia Investor Services. The median rate of return increased 12.9%, up from 12% in 2005, the survey said. Much of the increase was due to especially strong domestic and international market performance in the last half of 2006, Don McDougall, director of advisory services at RBC Dexia, said in an interview.
Canadian pension funds also benefited from 2006's 10% rise of the euro against the Canadian dollar, which led the median rate of return for foreign equity investments to soar 21.6% in the year. The company surveyed its Canadian clients, which have a total of C$340 billion ($289.7 billion) in assets.