The universe of defined benefit pension managers’ pooled funds posted a median return of 0.5 per cent before management fees during the first quarter of 2026, according to a new report by Telus Health.
The report found the S&P/TSX index rose 3.9 per cent during the quarter, driven by higher oil prices, while the MSCI world index and S&P 500 index declined 1.8 per cent and 2.7 per cent, respectively. The emerging markets index gained 1.6 per cent.
Read: Diversified pooled fund managers post 1.5% median return in Q4 2025: report
The median manager’s average return was 1.5 per cent for the quarter, which was 0.4 per cent lower than the benchmark commonly used by pension funds, based on an allocation of 55 per cent equity and 45 per cent fixed income.
“During the first quarter of 2026, the financial position of a typical pension plan deteriorated in terms of solvency,” said Jean Bergeron, partner in Telus Health’s retirement and benefits solutions, in a press release. “According to our estimates, the average solvency ratio of pension funds dropped by about 1.2 per cent, mainly due to the performance in foreign markets and rising interest rates.”
Read: Average Canadian DB pension plan returns 0.6% in Q4 2025: report