The universe of defined benefit pension managers’ pooled funds posted a median return of 1.5 per cent before management fees in the fourth quarter of 2025 and 11.8 per cent for the full year, according to a new report by Telus Health.
Major stock market indices provided strong performances in Q4 even though the macro environment was characterized by geopolitical instability and market volatility. Indeed, the S&P/TSX Composite Index grew 6.3 per cent, followed by the MSCI World Index (1.6 per cent) and the S&P 500 Index (1.1 per cent). The emerging markets index also grew by 3.2 per cent.
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The median return from Canadian bonds in Q4 was 0.19 per cent, resulting in a 3.25 per cent return on a year-to-date basis.
Despite the strong investment results, the report found diversified pooled fund managers reported an average return below the benchmark portfolio. The median manager’s return was 0.4 per cent lower than the benchmark based on an allocation split of equity (55 per cent) and fixed income (45 per cent).
“We estimate that the solvency ratio of a typical pension plan increased by about 1.5 per cent, driven by the robust performance from equity markets,” said Jean Bergeron, partner in Telus Health’s retirement and benefits solutions, in a press release.
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