The typical Canadian defined benefit pension plan posted a median return of 0.4 per cent in the first quarter of 2026, according to a new report by RBC Investor Services.
It found Canadian equity allocations returned 3.9 per cent in the quarter, matching the TSX composite index. Energy led sector gains with a 30.1 per cent surge following the Strait of Hormuz closure, while materials rose strongly early in the period, pulled back significantly in March and finished with a 10.7 per cent gain. March marked a turning point for information technology as well: after falling sharply in January and February, the sector partially recovered to end down 22.5 per cent.
On the global equity side, client plans returned negative 0.9 per cent, outperforming the MSCI world index’s 1.8 per cent drop as active management and tactical positioning cushioned losses. U.S. equities slipped 2.6 per cent, dragged down by the IT pullback. Value stocks significantly outperformed growth across indices, with MSCI world value gaining three per cent versus MSCI world growth’s 6.8-per-cent decline.
Emerging markets returned 1.6 per cent, though this modest gain masked significant volatility throughout the period. The MSCI emerging markets index surged 14.3 per cent in January and February, led by Taiwan and Korea on artificial intelligence-related technology strength, before retreating by 11 per cent in March as the Middle Eastern conflict drove energy costs higher, weighing on energy-importing nations.
Fixed income allocations returned 0.2 per cent, matching the FTSE Canada universe bond index. Bonds across all maturities gained ground in January and February before pulling back in March amid renewed inflation concerns. Long-term bonds experienced the sharpest pullback, dropping 3.6 per cent in the final month to finish the period flat.
“Canadian pension plans faced a challenging three months, marked by sharp divergence in sector returns,” said Isabelle Tremblay, director of client solutions and asset owner lead at RBC Investor Services, in a press release. “While technology holdings weighed on results, exposure to Canadian energy and materials provided crucial downside protection. The strong showing of domestic resource sectors helped moderate losses that would have been significantly deeper with purely international portfolios.”
Read: Canadian DB pension plans’ median solvency ratio decreases to 123% in Q1: report
A separate report by Northern Trust Corp. found the median DB plan returned 0.4 per cent for the quarter amid political frictions and a volatile economic backdrop.
Canadian equities, as measured by the S&P/TSX composite index, rose 3.9 per cent, while U.S. equities, as measured by the S&P 500 index declined by 2.6 per cent. International developed markets, as measured by the MSCI EAFE index, advanced 0.7 per cent and the MSCI emerging markets Index gained 1.7 per cent.
The Canadian fixed income market, as measured by the FTSE Canada universe bond index, posted 0.2 per cent for the quarter. Federal bonds outperformed both provincial and corporate bonds while mid-term bonds outpaced both short and long-term bonds over the period.
“Economies have remained resilient while navigating through what has been undoubtedly a tumultuous landscape,” said Katie Pries, country executive for Northern Trust Asset Servicing in Canada, in a press release.
“Pension plans continue to harness this resiliency by remaining focused on key underlying data, their core principles and the sound investment strategies formulated by plan sponsors to secure long-term sustainability.”
Read: Median solvency ratio of Canadian DB pension plans reaches 132% in 2025: report