Pension plans post solid returns in Q4

Canadian corporate, public and university pension plans covered by the BNY Mellon Canadian Master Trust Universe posted positive returns in the fourth quarter, according to data published Monday by Toronto-based CIBC Mellon.

The quarter saw a median return of +2.52%, resulting in a one-year median return of +13.92% as of Dec. 31, 2019, and a 10-year annualized return of +8.47%. 

The report revealed that Q4 saw higher returns in all equity segments compared with the previous quarter. International equity posted the highest quarterly median return (+6.83%), followed by non-Canadian equity (+6.28%), U.S. equity (+5.89%) and Canadian equity (+3.26%). 

Real Estate received the highest returns among non-traditional asset classes in the quarter (+1.88%).

“Equity markets displayed a rebound from economic slowdown around the globe, reporting higher positive performance in the fourth quarter as compared to the last quarter’s returns,” said Catherine Thrasher, head of strategic client solutions and global risk solutions, CIBC Mellon and BNY Mellon. “Continued market uncertainties led to fixed income reporting negative performance while alternative asset classes posted low, but positive results for the quarter.”

The BNY Mellon results cover 84 Canadian corporate, public and university pension plans with $253.1 billion worth of investment assets, with an average plan size of $3.0 billion.

Maddie Johnson

Maddie is a freelance writer and editor who has been reporting for Advisor.ca since 2019.