RBC Investor Services clients’ defined benefit plans in Canada reported a median return of 1.1% during the second quarter of 2024, and a 4.4% median return for the first half of 2024.
The data encompasses various client plans across private and public sectors, said a July 31 news release.
Global stocks in client plans generated gains of 3.1%, slightly underperforming the MSCI World index, which returned 3.8%. As was the case in the first quarter, growth stocks outpaced their value peers as the MSCI World Growth index gained 7.5%, while the MSCI World Value index slipped 0.1%.
On a regional basis, U.S. equities outperformed their international peers, as the S&P 500 gained 5.4% in the second quarter, far ahead of the MSCI EAFE’s 0.7% return.
Canadian stocks in RBCIS’ DB plans lagged their global counterparts, slipping 0.6% in the quarter, closely matching the 0.5% decline by the TSX Composite index.
Canadian fixed income assets in RBCIS’ DB plans returned 0.8% in the quarter, nearly matching the 0.9% return of the FTSE Canada Universe Bond index.
“This analysis emphasizes the complexities of the Canadian pension landscape, and the importance of diversifying and proactive risk management,” said Isabelle Tremblay, director-client solutions, asset owner segment lead at RBCIS, in the release. “The market continues to experience volatility due to ongoing geopolitical tensions. Inflation trended favorably in (the second quarter) following the June Bank of Canada rate cut. With the consecutive rate adjustment announced in July, plan managers are continuing to adapt their strategies and navigate the evolving environment."
RBC Investor Services, a unit of Royal Bank of Canada, has more than C$2.4 trillion ($1.76 trillion) in assets under administration.
