Canadian defined benefit pension plans returned 1.4 per cent in the second quarter, according to RBC Investor & Treasury Services.

The organization, which tracks plans with more than $650 billion in assets under management, said pension funds managed to stay in positive territory despite the weakness in Canadian equity markets. Canadian equity returns were were negative at minus 1.9 per cent for the second quarter, RBC Investor & Treasury Services is reporting. That compares to 2.3 per cent for global equities, as stocks continued to respond to positive economic data around the world despite disappointing numbers from the United States.

“Despite positive economic indicators of a healthy Canadian economy, depressed energy and commodities were amongst the poorest performing sectors to drag on domestic equities,” said James Rausch, head of client coverage for Canada at RBC Investor & Treasury Services.

Read: Median Ontario DB solvency falls to 89% in second quarter

Helping to offset the weakness in Canadian equities was a recovery in Canadian fixed-income returns at 1.4 per cent. Bonds yields, RBC Investor & Treasury Services noted, bounded back slightly in anticipation of an interest rate increase by the Bank of Canada. 

Copyright © 2017 Transcontinental Media G.P. Originally published on benefitscanada.com

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