TORONTO, Oct. 28, 2013 /CNW/ - Resilient global equity markets helped
lift Canadian pension plans back into positive territory during the
third quarter according to the latest quarterly survey from RBC
Investor & Treasury Services.
According to the $460 billion RBC Investor & Treasury Services All Plan
universe - the industry's most comprehensive universe of Canadian
pension plans - defined benefit (DB) pension assets rose 3.6 per cent
during the three months ending September 30, 2013, bringing
year-to-date totals to 7.9 per cent.
"Improving economic data from Europe and China helped spark global
stocks," said Scott MacDonald, Head, Pension Segment Development for
RBC Investor & Treasury Services. "But continued speculation over Fed
tapering and the looming US fiscal impasse kept financial markets
Canadian stocks rebounded from June's low, gaining 6.9 per cent while
exceeding the S&P/TSX Composite index by 0.7 per cent during the
quarter. "Advances were broad across nine of the ten sectors with only
the lightly weighted utilities sector posting negative numbers," said
MacDonald. "Year-to date, Canadian equity holdings are up 10.2 per cent
- considerably ahead of the index by 4.9 per cent. Value added came
mainly from an under-exposure to the heavily weighted materials sector,
with gold stocks in particular down 38.0 per cent for the period."
Foreign equities moved higher for the fifth successive quarter,
advancing 5.7 per cent against 5.4 per cent for the MSCI World Index.
"Strength was widespread across all global regions with Europe leading
the way," added MacDonald.
Year-to-date, foreign stocks continue to be the top performing asset
class as pension plans kept pace with the global benchmark, up 21.1 per
cent. "Canadian dollar weakness against most major currencies helped
boost returns by over 2.2 per cent for the nine month period," added
Bonds continued to show weakness as Canadian plans saw their holdings gain only 0.1 per cent in the last three months as DEX Universe Bond
Index yields increased for a third straight quarter. Year-to-date, bond
holdings declined 1.7 per cent while the DEX Long Term index lost 5.9
per cent and DEX Real Return Bonds are down 11.4 per cent.
About RBC Investor & Treasury Services
RBC Investor & Treasury Services (RBC I&TS) is a specialist provider
of asset servicing, custody, payments and treasury services for
financial and other institutional investors worldwide. We serve clients
from 18 locations across North America, Europe and the Asia Pacific
region. We deliver custodial, advisory, financing and other services to
safeguard clients' assets, maximize liquidity and manage risk in
multiple jurisdictions. RBC I&TS is ranked among the world's top 10
global custodians, with USD 3.1 trillion (CAD 3.1 trillion) in client
assets under administration (as at April 30 2013).
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Jason Graham/Kait Conetta
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