Mixed bag for Canadian pension funds Q3 revenue
06 November 2017 Toronto
Image: Shutterstock
Two of the largest banks in Canada have offered conflicting reports on the country鈥檚 pension fund revenue reports.
CIBC Mellon reported a median return of 0.55 percent for the third quarter, making it the sixth straight quarter of positive results.
The bank鈥檚 index showed a one-year return of 6.14 percent was just below the Canadian Master Trust Universe's 10-year annualised return of 6.17 percent and also marks the sixth consecutive quarter of positive one-year performance.
BNY Mellon Canadian Master Trust Universe is a fund-level tracking service with a market value of more than $232.8 billion and an average plan size of $2.7 billion.
The bank鈥檚 pension universe consists of 87 Canadian corporate, public and university pension plans.
Catherine Thrasher, managing director, global risk solutions Canada, BNY Mellon Asset Servicing, said: "The top performing asset class in the third quarter is Canadian equities with a median return of 3.4 percent.鈥�
鈥淚nternational equity was the best performing asset class over the one year time horizon (14.74 percent). Fixed income underperformed in the third quarter and one year time horizons with a median returns of -2.01 percent and -3.01 percent, respectively.鈥�
Meanwhile, Northern Trust Canadian Defined Benefit Pension Plan Universe, reported a median revenue drop off of 0.7 percent in Q3.
According to Northern Trust鈥檚 data, European equities, boosted by stronger investor confidence and expectations of a tighter monetary policy from the European Central Bank, rose 2.5 percent.
At the same time, a weaker US dollar and a pick-up in commodity prices helped the MSCI Emerging Markets index gain 4 percent in the third quarter.
Arti Sharma, president and CEO of Northern Trust Canada, said: 鈥淭he two interest rate hikes in the quarter resulted in a negative impact on the returns of pension plans. Pension plans with longer duration bonds underperformed as the yield curve rose over this period.鈥�
鈥淒espite the weaker results experienced this quarter, Canadian pension plans continue to enjoy a healthy return of 4.4 percent year-to-date.鈥�
The Northern Trust Canada Universe tracks the performance of Canadian institutional investment plans that subscribe to performance measurement services as part of Northern Trust鈥檚 asset servicing offerings.
CIBC Mellon reported a median return of 0.55 percent for the third quarter, making it the sixth straight quarter of positive results.
The bank鈥檚 index showed a one-year return of 6.14 percent was just below the Canadian Master Trust Universe's 10-year annualised return of 6.17 percent and also marks the sixth consecutive quarter of positive one-year performance.
BNY Mellon Canadian Master Trust Universe is a fund-level tracking service with a market value of more than $232.8 billion and an average plan size of $2.7 billion.
The bank鈥檚 pension universe consists of 87 Canadian corporate, public and university pension plans.
Catherine Thrasher, managing director, global risk solutions Canada, BNY Mellon Asset Servicing, said: "The top performing asset class in the third quarter is Canadian equities with a median return of 3.4 percent.鈥�
鈥淚nternational equity was the best performing asset class over the one year time horizon (14.74 percent). Fixed income underperformed in the third quarter and one year time horizons with a median returns of -2.01 percent and -3.01 percent, respectively.鈥�
Meanwhile, Northern Trust Canadian Defined Benefit Pension Plan Universe, reported a median revenue drop off of 0.7 percent in Q3.
According to Northern Trust鈥檚 data, European equities, boosted by stronger investor confidence and expectations of a tighter monetary policy from the European Central Bank, rose 2.5 percent.
At the same time, a weaker US dollar and a pick-up in commodity prices helped the MSCI Emerging Markets index gain 4 percent in the third quarter.
Arti Sharma, president and CEO of Northern Trust Canada, said: 鈥淭he two interest rate hikes in the quarter resulted in a negative impact on the returns of pension plans. Pension plans with longer duration bonds underperformed as the yield curve rose over this period.鈥�
鈥淒espite the weaker results experienced this quarter, Canadian pension plans continue to enjoy a healthy return of 4.4 percent year-to-date.鈥�
The Northern Trust Canada Universe tracks the performance of Canadian institutional investment plans that subscribe to performance measurement services as part of Northern Trust鈥檚 asset servicing offerings.
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