Canadian pension funds defy volatile markets to achieve 5.4% annual return in 2015

TORONTO – Canadian pension funds achieved coming back of 5.4 percent on their own investments in 2015 as their means of diversifying internationally helped mitigate volatile market conditions, research by RBC Investor & Treasury Services showed.

The research, which is the industry’s very indepth study of Canadian funds, showed they achieved coming back of 3.1 per cent within the fourth quarter of 2015, following back-to-back losses in the second and third quarters.

The funds have pursued a strategy of directly purchasing assets globally, including investments in infrastructure and real estate. Pension professionals state that provides them with a buffer against market volatility and challenging economic conditions.

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“Canadian pension plans clearly benefited from global diversification portfolio strategies,” David Heisz, ceo of RBC Investor Services Trust, said inside a statement on Thursday.

Heisz said the positive 2015 performance could largely be attributed to a good start from global equities, offsetting downward pressure from weaker domestic sectors, particularly commodities, resources and energy during the period of the year.

Canada’s biggest 10 public pension funds now manage assets more vital than $1.1 trillion, having tripled in size since 2003, research through the Boston Consulting Group showed in December.

? Thomson Reuters 2016