Canadian Pension Funds Returned 10.6% in 2024

Institutional defined benefit plans returned 1.5% in the year’s fourth quarter, according to Northern Trust.  



Equities propelled the returns of Canadian pension plans in both the fourth quarter of 2024 and the full year, according to the
Northern Trust Co.’s Canada Universe, which tracks the performance of institutional defined benefit plans which subscribe to the firm’s performance measurement services. These pensions returned 10.6% for 2024 and posted a 1.5% return in the fourth quarter.  

According to Northern Trust, Canadian equities—measured by the S&P/TSX Composite Index—rose 3.8% in Q4 2024 and 21.7% for the full year. U.S. equities gained 9% in Canadian dollars during the quarter and 36.4% during the year.  

Global and emerging equities produced weaker returns in the quarter but still turned in strong performances for the full year. International developed market equities, measured by the MSCI EAFE Index, declined 2.1% during the final quarter of calendar 2024 but returned 13.8% for the full year. Emerging market equities, measured by the MSCI Emerging Markets Index, fell 1.9% in the quarter but returned 17.9% for the full year.  

The bond market was flat in the fourth quarter, according to Northern Trust, a result of the Canadian yield curve fluctuating in both directions. Fixed income posted a “healthy single digit return” for the full year, according to Northern Trust.  

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“This past year presented both challenges and opportunities as the macroeconomic environment pursued stability and normality,” said Katie Pries, president and CEO of Northern Trust Canada, in a statement. “Whether the economic tone is one of caution or optimism, plan sponsors are adapting well as they continue to modernize frameworks and implement strategies to secure consistent growth and protection of their respective pension plan investments both now and into the future.” 

Related Stories: 

US Equities Buoy Canada Pension Plan’s 3.6% Return in Q2 

Home Bias: Do Canadian Pensions Need to Invest More in Canada? 

Surging Domestic Equities, Bonds Buoy Canadian Pensions’ 5% Gain in Q3 

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