RBC Investor & Treasury Services
Survey: Canadian pensions post solid gains in first quarter
Toronto, April 25, 2013 — Resurgent
global stock markets continued to lift pension assets in the
first quarter, according to the latest survey from RBC Investor
Services, part of Royal Bank of Canada's (RY on TSX and NYSE)
Investor & Treasury Services segment.
Within the $460 billion RBC Investor & Treasury Services
All Plan universe - the industry's most comprehensive universe
of Canadian pension plans - Defined benefit (DB) pensions
earned 4.4 per cent in the quarter ending March 31, 2013,
bringing 12-month results to 9.4 per cent.
"On the back of optimism over the U.S. recovery, and
central bank commitments to maintain loose monetary policies,
investors built on last fall's run, helping pension plans
to maintain momentum," said Scott MacDonald, Head, Pensions,
Insurance, and Sovereign Wealth Strategy for RBC Investor
& Treasury Services.
Global Equities continued to be the top performing asset class
as pension plans kept pace with the MSCI World Index, gaining
10.0 per cent for the quarter. "Strength came primarily
from the U.S. market which set new highs, but also from Japanese
stocks, up in excess of 20 per cent in local currency terms.
Pensions did well to match the World benchmark, as most were
under exposed to the U.S. market," noted MacDonald.
Canadian equity markets also contributed to pension performance
as the S&P/TSX Composite rose 3.3 per cent in the quarter.
"Advances were fairly broad but weakness in mining stocks
drove the heavily weighted materials sector down 10.4 per
cent. However, most pension plans were under exposed and subsequently
outperformed the index by 1.4 per cent for the quarter,"
Bonds generated lacklustre returns as longer duration maturities
were affected early in the quarter. Added MacDonald: "With
recent events in Cyprus spooking some investors back to the
bond market, Canadian pension plans earned 0.6 per cent over
the last three months in their fixed income allocation."
About RBC Investor & Treasury
RBC Investor & Treasury Services, part of Royal Bank of
Canada (RY on TSX and NYSE), is a specialist provider of custody,
payments and treasury services for financial and other institutional
investors worldwide. The Investor & Treasury Services
segment is comprised of three businesses: Global Financial
Institutions, Investor Services and Treasury Services. Active
in 15 markets globally, RBC Investor & Treasury Services
provides custodial, advisory, financing and other services
to safeguard clients' assets, maximize liquidity and manage
risk in multiple jurisdictions. RBC Investor & Treasury
Services is ranked among the world's top 10 global custodians,
with USD 2.9 trillion (CAD 2.8 trillion) in client assets
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