Canadian public and corporate defined benefit plans returned an overall 1.4% in the second quarter, with performance in global equities and Canadian fixed income driving the gains, according to RBC Investor & Treasury Services.
While down from the 2.9% return in the first quarter, the latest three-month period was the fifth consecutive quarter of positive returns for Canadian plans.
"Despite positive economic indicators of a healthy Canadian economy, depressed energy and commodities were amongst the poorest performing sectors to drag on domestic equities," said James Rausch, head of client coverage, Canada, in a news release. "Nevertheless, Canadian pension fund managers have continued to prudently manage portfolio allocations, remaining underweight in Canadian equities compared to domestic fixed income and global equities, and generating yet another positive overall return for the quarter."
Canadian equity investments lost 1.9% in the quarter ended June 30, vs. a 2.3% return in the first quarter.
Global equities returned 2.3% in the latest quarter, down from 6.2% in the quarter ended March 31, while Canadian fixed income returned 1.4%, the same as the first quarter.
The RBC Investor & Treasury Services universe has a combined C$650 billion ($514 billion) in pension assets.