CANADA - The intense hurricane season has kept the energy-heavy Canadian stock market surging, boosting one-year pension investment returns to 15.1%.
According to BENCHMARK, the investment analytics arm of RBC Global Services, within the $340bn BENCHMARK universe Canadian balanced funds earned 3.8% in the three months ending Sept 2005.
Canadian stocks made most of the gains, as the S&P TSX composite index jumped 11.6% for the quarter.
“Again this quarter, the energy sector alone accounted for half of the returns. Canadian energy shares are up 25.7% and a remarkable 78.9% over the year,” said BENCHMARK’s director, Don McDougall.
As prices soared, equity managers tended to reduce their exposure and subsequently lagged the index by 0.6% for the quarter.
Domestic bonds were flat, gaining only 0.2% in the latest quarter and 9% over the year, closely in line with Scotia Universe Bond Index.
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