The solvency ratio of an average pension fund declined by about 2.3 per cent in the first quarter of 2025, according to a new report from Telus Health.

Diversified pooled fund managers posted a return slightly below the benchmark portfolio with the median return (0.8 per cent) being 0.1 per cent lower than the return of the benchmark portfolio (with an allocation of 55 per cent equity and 45 per cent fixed income).

Read: Average Canadian DB pension plan returns 1.1% in Q1 2025: report

Canadian equities, measured by the S&P/TSX composite index, returned 1.5 per cent during the quarter followed by the MSCI world index (negative 1.7 per cent) and S&P 500 equity index (negative 4.4 per cent). Emerging markets posted a three per cent increase.

In a press release, Jean Bergeron, a partner in Telus Health’s investment consulting team, said the solvency ratio of an average pension fund declined primarily due underperformance across most asset classes.

“The stock markets showed mixed performance during the first quarter of 2025 amid a more volatile economic environment.”

Read: 59% of global institutional investors consider investment managers strategic partners: survey