Business

Canadian Pension Plans Delivered Muted Returns in Q4 2025 Amid a Shifting Geopolitical Landscape

TORONTO, February 03, 2026--Pension plans in the Northern Trust Canada Universe had a median return of 0.2% in Q4 2025 and 4.4% for the year.

articleNorthern Trust CorporationFebruary 3, 20267/company/northern-trust-corporation/news/canadian-pension-plans-delivered-muted-151500128
Canadian Pension Plans Delivered Muted Returns in Q4 2025 Amid a Shifting Geopolitical Landscape

About this update from Northern Trust Corporation

[{"type":"image","alt":"","displaySize":"","headline":null,"caption":"","credit":null,"className":"","disableSlideshowImg":false,"size":{"original":{"width":1024,"height":512,"url":"https://media.zenfs.com/en/business-wire.com/7f660924f72729ba9f9d9fb2831f4a87"},"resized":{"url":"https://s.yimg.com/ny/api/res/1.2/Ux6fqghPX9_i0n_ZKYlXHg--/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTQ4MDtjZj13ZWJw/https://media.zenfs.com/en/business-wire.com/7f660924f72729ba9f9d9fb2831f4a87","width":960,"height":480},"lightbox":{"url":"https://s.yimg.com/ny/api/res/1.2/l.yzApNhd2KKjkzfyNSsoQ--/YXBwaWQ9aGlnaGxhbmRlcjt3PTIwNDg7aD0xMDI0O2NmPXdlYnA-/https://media.zenfs.com/en/business-wire.com/7f660924f72729ba9f9d9fb2831f4a87","width":1024,"height":512}},"lazy":false},{"type":"text","content":"TORONTO, February 03, 2026--(BUSINESS WIRE)--Canadian pension plans continued to show resiliency and strength through another volatile period in the fourth quarter of 2025, carving out a modest median return of 0.2% for the quarter and generating a return of 4.4% for the year, according to the Northern Trust Canada Universe.","length":326,"tagName":"p"},{"type":"text","content":"Similar to the beginning of 2025, the fourth quarter started with market volatility caused by geopolitical tensions, trade policy friction, and economic uncertainty, compounded by a U.S government shutdown that lasted a record 43 days. Much of the data released during the quarter showed most major economies held up reasonably well in the face of a challenging environment. The U.S. Federal Reserve (Fed) cut its overnight interest rate twice during the quarter as its labour market showed signs of cooling, while the Bank of Canada (BoC) cut its benchmark rate in October and maintained the rate at its December meeting, acknowledging some improvement in the labour market and employment activity. The outlook improved as the U.S. government shutdown resolved, the U.S. and China agreed to a temporary trade truce, and tariff-escalation rhetoric reduced to a simmer.","length":868,"tagName":"p"},{"type":"text","content":"Equity markets navigated through events and generated positive performance, led by Canada, for the quarter and the year. Other major equity indices closed the year producing attractive double-digit returns. Canadian bonds witnessed a modest decline for the quarter as the yield curve steepened but posted a positive retu...

More updates from Northern Trust Corporation

Northern TrustBank of Canadagovernment shutdownmarket volatilityConsumer DiscretionaryCanadian bondsovernight interest rateinterest ratesReal EstateCanada