Canadian energy helps pension funds
CANADA - Pension plans were lifted into positive territory by rising home-based energy stocks, but their diversified portfolios meant they did not match the country index's gains in the second quarter of 2008.
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.
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.
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