Private sector pensions outperformed public pensions in Q3

Private sector pension funds outperformed public sector funds in the third quarter of 2019, according to new data from Statistics Canada.

The national statistical agency published new data which showed that the market value of private sector pension funds grew by 2.3% in the third quarter, outpacing public sector funds, whose assets rose by 1.3%.

On a year-over-year basis, private sector assets were up 9.4%, versus 6.4% for public sector funds.

Overall, the market value of pension assets grew by 1.6% in the third quarter to $2.04 trillion. Total assets were up by 7.3% year over year.

Bond investments led the way in Q3, rising by 3.1%, StatsCan reported.

Stocks were up 2.1%, mortgage investments gained 1.5% and real estate was up by 1.2% in the quarter.

The value of short-term investments declined by 2.4% in Q3, and the value of other assets was relatively flat.

StatsCan also reported that net income for pension funds rose by 14.1% in Q3, and by 48.2% year over year.

Revenue from pension contributions was down 13.4% in the quarter, but StatsCan said “this was more than offset by growth in net profit on sales of securities (17.9%) and investment income (3.6%)”.

Pension expenditures declined by 4.2% in the quarter, “mainly due to lower pension payments and administration costs,” the agency noted.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.