Market signals a slowdown of global
economic growth and calls for defensive investment
strategies
TORONTO, Nov. 5, 2019 /CNW/ - Canadian defined benefit
pension plans returned 1.7 per cent (based on the median return) in
Q3 2019, down -1 per cent from Q2 2019 returns, according
to the RBC Investor & Treasury Services All Plan
Universe.
Additional results
- TSX Composite Index returned 2.5 per cent (marginally down by
-0.1 percent from Q2). Overall, nine of the 11 sectors posted
positive returns, with Utilities and Real Estate taking the lead.
Canadian equities also returned 2.5 per cent in Q3, up from Q2
returns of 2.3 per cent.
- The FTSE TMX Canada Universe returned 1.2%, as Canadian bond
yields also continued to drop in step with global bonds, resulting
in longer-term bonds outperforming their shorter-term counterparts.
Canadian Fixed Income investments returned 1.9 per cent (-1.8
percent down from Q2).
- The MSCI World Index made slight gains to 1.9 per cent (up +0.1
per cent over Q2). Global equities declined quarter over quarter,
returning 0.8 per cent in Q3, down from the Q2 return of 1.8 per
cent.
Quote
"While markets remain volatile, the ongoing trade tensions
between the U.S. and China, in
addition to the geopolitical turbulence surrounding Brexit,
continue to propel very modest pension plan returns. Plan sponsors
are encouraged to consider taking a defensive approach to lower
investment risks, such as moving into private assets, blue chips
and other relatively safe investments with stable track
records."
- Ryan Silva, Director,
Client Coverage, RBC Investor & Treasury Services
Historic performance
Period
|
Return (%)
|
Period
|
Return (%)
|
Q3 2019
|
1.7
|
Q4 2017
|
4.4
|
Q2 2019
|
2.7
|
Q3 2017
|
0.4
|
Q1 2019
|
7.2
|
Q2 2017
|
1.4
|
Q4 2018
|
-3.5
|
Q1 2017
|
2.9
|
Q3 2018
|
0.1
|
Q4 2016
|
0.5
|
Q2 2018
|
2.2
|
Q3 2016
|
4.2
|
Q1 2018
|
0.2
|
Q2 2016
|
2.9
|
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 and market services for financial and other institutional
investors worldwide, with over 4,500 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 4.2 trillion in client assets under
administration, RBC I&TS has been rated by our clients as the
#1 global custodian for eight consecutive years and is a
financially strong partner with among the highest credit ratings
globally.
About RBC
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a purpose-driven, principles-led approach to delivering leading
performance. Our success comes from the 86,000+ employees who bring
our vision, values and strategy to life so we can help our clients
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SOURCE RBC Investor & Treasury Services