Pension funds posted a median return of 2.9 per cent before management fees in the second quarter of 2018, according to Morneau Shepell’s Performance Universe of Pension Managers' Pooled Funds report for the second quarter of 2018.
"Most stock markets delivered excellent results in the second quarter, generating positive pension fund returns. Canadian and U.S. equities did particularly well, with returns of 6.8 per cent for the S&P/TSX and 5.6 per cent in Canadian dollars for the S&P 500. Emerging equities had a tough quarter, returning -6.0 per cent in Canadian dollars. Bond returns were modest in the second quarter, at about 0.5 per cent for the market as a whole," said Jean Bergeron, vice-president responsible for the Morneau Shepell Asset & Risk Management consulting team.
Solvency ratios for an average pension plan also improved by about 1.3 to 1.9 per cent since the beginning of the year, added Bergeron.
The Performance Universe report covers about 336 pooled funds. The results of the study are based on the returns provided by portfolio managers, ranging from independent investment management firms to insurance companies, trust companies and financial institutions, says Morneau Shepell. To learn more, consult the full report here.