CANADA - Buoyed by healthy fourth quarter performance, Canadian balanced funds posted a return of 10.1% in 2004, according to Royal Bank of Canada Global Services (RBC).
RBC, which maintains the industry’s universe of Canadian pension plan and money managers, said Canadian pension funds returned double-digits for a second consecutive year.
According to results of the quarterly survey released by BENCHMARK(R), the investment analytics arm of RBC, balanced funds within the CAN$340bn BENCHMARK(R) universe returned 5.3% in the quarter ending December 2004.
“This year, as last year, markets rallied in the final quarter,” said Don McDougall, director, BENCHMARK, RBC. “Half the annual gains were concentrated in those final three months - a strong finish, however, 2004 did not quite match the 13.5% annual return posted in 2003.
Canadian equities – the top-performing asset class for the last seven quarters – returned 15.7% in 2004. Active managers outperformed the market by 1.2%, capturing superior returns in materials and industrials, while maintaining exposure to the energy and financial sectors, RBC said.
McDougall added: “2004 was not just about equities. Low interest rates buoyed domestic bonds.”
Canadian fixed income managers averaged 7.2% over the year, keeping pace with the Scotia Capital Universe Bond Index, RBC said.
A suite of liability driven investment (LDI) indices has been launched by STOXX and RiskFirst to aid trustees and consultants select, monitor and challenge managers.
British Airways and the trustees of one of its pension schemes are set to argue over the purpose of a pension scheme, leading to an impactful judgment for DB pensions. James Phillips explores the issue
Bank of England governor Mark Carney has said there is still a lot of data to consider before the Monetary Policy Committee (MPC) can decide when to next hike interest rates.
Savers are not squandering their tax-free lump sums under Freedom and Choice but are taking a more cautious approach to retirement, according to Prudential research.