Canadian corporate and public pension plans returned an overall 4.2% in the third quarter with global and domestic equity investments continuing to drive gains, said RBC Investor & Treasury Services' quarterly survey.
The return is up from the 2.9% in the previous quarter; year-to-date through Sept. 30, the overall return is at 7.3%, RBC said in a news release.
The plans returned -2% in the third quarter 2015.
The pension funds’ holdings in global and Canadian equities each had returns of 6.7% in the quarter ended Sept. 30. Global equity returns are 1.8% for the first nine months of 2016, while Canadian equities saw a 15.9% return.
Canadian bonds returned 1.6% in the latest quarter and 6.2% year-to-date through Sept. 30.
“The resources, materials and energy sectors continued to fuel the gains in Canadian equities, while global markets adapted to the post-U.K. referendum landscape and emerging economies realized gains,” said James Rausch, global head of transaction banking at RBC Investor & Treasury Services, in the release. “Global volatility remains a reality as several markets, including China, experience anemic growth despite low or negative interest rate policies. Managing risk will remain a priority for the remainder of 2016.”
The RBC pension fund universe has a combined C$650 billion ($485 billion) in assets.