Canadian pension plans posted stronger results in the second quarter, according to a report from CIBC Mellon.
The BNY Mellon Canadian Master Trust Universe — which tracks the returns of 87 Canadian corporate, public and university pension plans with $301.5 billion in assets under management — had a median return of 4.35% for the quarter ended June 30. That compared to a meagre median return of 0.6% in Q1.
All asset classes posted positive returns, with Canadian equities leading the way with a median return of 7.10%, compared with an 8.54% return for the S&P/TSX composite index.
U.S. equities posted a median return of 6.35% while international equities and emerging markets equities had median returns of 3.92% and 3.58%, respectively.
Fixed income had a median return of 2.44% — a significant improvement over the -5.18% median return the asset class posted in the first quarter.
In the alternative space, private equity had the strongest median return (4.94%), followed by real estate (2.44%) and hedge funds (1.54%).
Canadian foundations and endowments had the strongest median return in the quarter (4.59%), followed by university pension plans (4.38%).