Canadian energy helps pension funds

RBC Dexia Investor Services found pension funds had earned 1% in the second three months of the year, cutting year-to-date losses down to -1%.

Don McDougall, director of advisory services for RBC Dexia, said: "Albeit modest, after posting three consecutive negative quarters, it's a welcome reprieve, especially considering the weakness in other global markets."

The S&P Composite Index, run on the Toronto Stock Exchange, soared 9.1% over the quarter which pension funds missed hitting by almost 1%.

Energy stocks on the exchange grew by 22.9% accounting for over a third of these gains.

However, global stocks hit pension funds the hardest for another quarter, slipping 3.4% over the quarter and missing the MSCI World Index by 0.5%.

Fixed income performed poorly, losing 0.3% in Q2 as mounting speculation over inflation kept domestic bonds in the red.

McDougall added: "Fortunately for those holding real return bonds, they unsurprisingly flourished in this type of environment, gaining an impressive 10.7% over six months."

For an overview of Canada's investment trends, see the latest edition of Global Pensions.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Canada