Q2 total returns gain 2.2 per cent while
Canadian equities return 6.8 per cent
TORONTO, Aug. 2, 2018 /CNW/ - Canadian defined benefit
pension plans posted a mild uptick in Q2 2018, returning 2.2 per
cent, up from Q1 returns of 0.2 per cent, according to RBC Investor
& Treasury Services All Plan Universe.
ADDITIONAL RESULTS
- Strong results in the energy sector propelled Canadian equities
to return 6.8 per cent, reversing the Q1 2018 loss of -3.9 per
cent
- The TSX Composite Index posted a 6.8 per cent return, compared
to a -4.5 per cent loss in Q1 2018
- Global equities, impacted by trade war fears, along with
central banks' drive towards normalization of monetary policy,
returned 2.6 per cent, up from Q1 2018 return of 2 per cent
- The MSCI World Index gained 3.8 per cent this quarter, versus
1.6 per cent in Q1 2018, while the Emerging Markets index dropped
6.1 per cent in Q2 2018
- Escalating tensions with the U.S., the impact of taxing imports
and the volatility associated with policy uncertainty placed
pressure on fixed income markets, which ended the quarter almost
unchanged with a 0.6 per cent return compared to 0.1 per cent in Q1
2018
- The FTSE TMX Universe Canadian bond index also returned a
modest 0.5 percent return, up from 0.1 per cent in Q1 2018
QUOTE
"Despite ongoing volatility at home and abroad, Canadian defined
benefit pension plans have posted positive returns during the first
half of 2018. The Canadian market rallied this quarter partly due
to the energy sector rebound, as well as strong returns from other
segments, including the Materials sector. As we head into the
second half of the year, asset managers must remain vigilant. NAFTA
trade tensions, U.S. – China trade
friction and ongoing geopolitical issues will continue to
reverberate through the markets, forcing asset managers to remain
attentive to the ongoing volatility and its impact on portfolios
and risk exposure."
- Ryan Silva, Director, Head of Pension and
Insurance Segments, Global Client Coverage RBC Investor
& Treasury Services
HISTORIC PERFORMANCE
Period
|
Return
(%)
|
Period
|
Return
(%)
|
Q2 2018
|
2.2
|
Q1 2016
|
0.0
|
Q1 2018
|
0.2
|
Q4 2015
|
3.1
|
Q4 2017
|
4.4
|
Q3 2015
|
-2.0
|
Q3 2017
|
0.4
|
Q2 2015
|
-1.6
|
Q2 2017
|
1.4
|
Q1 2015
|
6.6
|
Q1 2017
|
2.9
|
Q4 2014
|
2.7
|
Q4 2016
|
0.5
|
Q3 2014
|
1.1
|
Q3 2016
|
4.2
|
Q2 2014
|
3.0
|
Q2 2016
|
2.9
|
Q1 2014
|
4.8
|
About the RBC Investor & Treasury Services All Plan
Universe
For the past 30 years, RBC Investor & Treasury
Services (RBC I&TS) has managed one of the industry's
largest and most comprehensive universes of Canadian pension plans.
The "All Plan Universe" currently tracks the performance and asset
allocation of a cross-section of assets under management across
Canadian defined benefit (DB) pension plans, and is a
widely-recognized performance benchmark indicator. The RBC Investor
& Treasury Services "All Plan Universe" is produced by RBC
I&TS' Risk & Investment Analytics (R&IA) service.
R&IA work in partnership with best-in-class technology to
deliver independent and cost effective solutions designed to help
institutional investor clients monitor investment decisions,
optimize performance, reduce costs, mitigate risk and increase
governance capability.
About RBC Investor & Treasury Services
RBC Investor & Treasury Services (RBC I&TS) is a specialist
provider of asset services, custody, payments and treasury services
for financial and other institutional investors worldwide, with
employees in 17 countries across North
America, Europe,
Asia and Australia. We deliver services which safeguard
client assets, underpinned by client-centric digital solutions
which continue to be enhanced and evolved in line with our clients'
changing needs. Trusted with CAD 4.4
trillion in client assets under administration as at
May 24, 2018, RBC I&TS has been
rated by our clients as the #1 global custodian for seven
consecutive years and is a financially strong partner with among
the highest credit ratings globally.
About RBC
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RBC Investor & Treasury Services is a specialist provider of
asset servicing, custody, payments and treasury services for
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SOURCE RBC