Canadian pension plans returned a median -8.6% in the third quarter, the biggest quarterly plunge in a decade, according to a survey by RBC Dexia Investor Services.
In the first nine months of this year, investment values have fallen 10.1%, according to the survey.
It hasnt been pretty and judging by the performance in October so far, the situation is not getting any better, Don McDougall, director of advisory services for RBC Dexia, said in a statement.
During the quarter, Canadian equities fell 18.2%, making it the hardest-hit asset class. Energy stocks fell 28.3% and materials fell 33.6%. Global equities dropped 11.2%, while Canadian bonds fell 1.5%.
Spreads varied considerably: longer maturity bonds dropped 3.1%, while real return bonds lost 9% their worst quarter in 14 years, according to Mr. McDougall.