Canadian pension plans saw a median return of 1.23 per cent for the first quarter of 2025, according to a new report from CIBC Mellon.
It also noted a median one-year return of 9.21 per cent and a 10-year annualized return of 6.46 per cent for the average Canadian pension plan. Based on $328 billion worth of investment assets in Canadian investment plans, with an average plan size of $4.8 billion, international equities posted the highest performance with a quarterly median return of 3.67 per cent.
Read: Average Canadian DB pension plan returns 1.1% in Q1 2025: report
On the other hand, U.S. equities posted the lowest return with a negative 4.21 per cent return during the quarter. Canadian equities posted a 0.48 per cent return, while emerging markets offered a 2.39 per cent return.
Private equity achieved the highest gains within alternative assets with a 1.57 per cent median return, followed by hedge funds (1.17 per cent) and real estate (0.56 per cent). Corporate pension plans tracked in the universe beat public plans and foundations and endowments with a median performance of 1.24 per cent during the quarter.
In a press release, David Cohen, director of global risk solutions at BNY Mellon, said despite challenging market conditions, Canadian pension plans showed continued resilience and delivered positive returns.
“Outside of U.S. equities, which experienced a sharp sell-off, most equity markets generated positive returns. Meanwhile, declining fixed income yields offered a measure of safety amid rising trade tensions. Stable private asset performance further supported Canadian plan sponsors in navigating public market volatility.
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