Home Breadcrumb caret Industry News Breadcrumb caret Industry DB plans improve in Q2, while Caisse posts 3.3% return over six months Canadian defined benefit pension plans returned 2.2% in the second quarter of 2018, an increase from the 0.2% reported in Q1, RBC Investor & Treasury Services said Thursday. After losses of 3.9% in the first quarter, Canadian equities were driven by a strong energy sector to a 6.8% return in Q2, RBC said, while global […] By Staff, with files from The Canadian Press | August 2, 2018 | Last updated on August 2, 2018 2 min read Canadian defined benefit pension plans returned 2.2% in the second quarter of 2018, an increase from the 0.2% reported in Q1, RBC Investor & Treasury Services said Thursday. After losses of 3.9% in the first quarter, Canadian equities were driven by a strong energy sector to a 6.8% return in Q2, RBC said, while global equities improved from a 2% return in Q1 to 2.6% in the more recent quarter. Fixed income markets were impacted by trade tensions and remained almost unchanged, with a 0.6% Q2 return compared to 0.1% in the first quarter. Caisse reports gains in ‘complex’ six months Quebec’s Caisse de depot is reporting a return of 3.3% on clients’ funds for the first six months of 2018, compared with 3.5% for its benchmark portfolio. Over five years, the weighted average annual return was 9.9%, which represented net investment results of $111.3 billion. That brought the pension fund manager’s net assets to $308.3 billion. The Caisse earned a 9.3% return in 2017. “The market environment became more complex in the first half of the year,” Caisse president and CEO Michael Sabia said in a statement Thursday. “Tightening liquidity conditions and protectionist measures by the U.S. have increased volatility since January. The long-running global bull market is slowing down. As the U.S. Federal Reserve continues to normalize its monetary policy and rates gradually climb, we are seeing a change of tone in the markets.” In the first half of 2018, the Caisse pursued its strategy of diversifying its sources of returns by investing in credit and less-liquid assets, concentrating on the new economy as well as on renewable energy and green technology. The six-month period also saw the Caisse and the Fonds de solidarite FTQ sign an agreement with Boralex to invest up to $300 million by way of an unsecured subordinated loan in the renewable energy company. The Caisse has invested $170 million under the agreement, which follows a stake of nearly 20% taken in the company in 2017. The $308.3 billion in clients’ net assets was $9.8 billion higher than the $298.5 billion as of Dec. 31, 2017. The growth was attributable to net investment results of $9.4 billion and net deposits of $400 million. Also read: Are you entitled to a commuted value? Learning to love your future self OSC offers ideas to remove retirement planning barriers Staff, with files from The Canadian Press The Canadian Press is a national news agency headquartered in Toronto and founded in 1917. Save Stroke 1 Print Group 8 Share LI logo