Canadian defined benefit plans in the RBC Investor & Treasury Services universe returned 1.1% in the third quarter and 8.6% for the first nine months of 2014.
The universe of public and private pension funds with a combined C$520 billion (US$462.7 billion) in assets picked up most of the gains from foreign equities, which returned 2.2% in the three months ended Sept. 30 and 8.4% since Jan. 1, said Tenzin Sadutshang, senior analyst, investment funds research, at RBC Investor & Treasury Services.
“Foreign currency gains made up the lion’s share of the quarterly return, with the U.S. dollar gaining 4.9%” against the Canadian dollar, said Scott MacDonald, RBC managing director, pensions.
The universe saw a -1.1% quarterly return in Canadian equities and 11.5% for the nine-month period. “The decline in energy and material stocks more than offset gains in the other (Toronto Stock Exchange) sectors,” Mr. MacDonald said.
Bonds, meanwhile, returned 1.1% for the quarter and 6.5% for the nine-month period.