Diversified pooled fund managers saw median losses of 4.1 per cent in the first quarter of 2022, according to LifeWorks Inc.’s performance universe.
While Canadian equities increased 3.8 per cent on the S&P/TSX composite index, the median return for Canadian equity managers was just three per cent. Significant losses were seen in the U.S., with the S&P 500 index registering a loss of six per cent, while U.S. equity managers posted median losses of 6.9 per cent.
Losses outside of North America were even more severe, with the MSCI world index dipping 6.2 per cent and the emerging markets index slipping eight per cent. International equity managers saw median losses of 9.9 per cent, while emerging market equity managers saw assets drop by 11.6 per cent.
The Canadian bond market decreased by seven per cent. In a press release, Jean Bergeron, a partner in investment and risk consulting at LifeWorks, said this benefitted pension plans by lowering solvency liabilities and improving financial positions. “We estimate that the solvency ratio of a typical pension plan has increased by around 1.3 per cent over the first quarter of 2022.”