Press release
Northern Trust Pension Universe Data: Canadian Defined Benefit Plans conclude 2019 with double-digit returns
TORONTO--(BUSINESS WIRE)-- Canadian defined benefit plans generated a median return of 13.6 percent for the year in 2019, with North American equities
About this update from Northern Trust Corporation
[{"type":"text","content":" TORONTO--(BUSINESS WIRE)--\nCanadian defined benefit plans generated a median return of 13.6 percent for the year in 2019, with North American equities leading the way, according to data from the Northern Trust Canada Universe.\n\n\nCanadian DB Plans benefitted from a sharp increase in equity market returns in the latter part of the quarter, with the median Canadian plan generating a 1.9 percent return for the fourth quarter versus the previous quarter of 1.6 percent. “Despite a year plagued with negative headlines, fueled with uncertainty and low expectations, Canadian pension plans navigated through the turbulence and continued on a journey of positive returns,” said Arti Sharma, President and CEO of Northern Trust Canada. “Equity markets closed 2019 in a strong position, realizing solid double digit gains for the year. As a result, plans in the Northern Trust Canada Universe marked a considerable improvement over the -1.0 percent median return in 2018.”\n\n\nThe Northern Trust Canada Universe tracks the performance of Canadian institutional investment plans that subscribe to performance measurement services as part of Northern Trust’s asset servicing offerings.\n\n\nIn the fourth quarter, equity markets overcame a backdrop of geopolitical tension to post positive results. In conjunction with favourable monetary policy, initial progress on U.S.-China trade negotiations, as well as potential clarity on the path to a Brexit resolution, all set the stage for a positive tone and promising sentiment.\n\n\nCanadian Equities, as measured by the S&P TSX Composite Index, gained 3.2 percent for the quarter and closed the year with a solid 22.9 percent return, its best annual return since 2010. Although the labour market demonstrated softness early in the quarter, improvement began to surface later in the quarter as employment numbers increased. Alberta’s announcement to lift drilling restrictions on new oil wells served as another supportive economic measure. Among the sectors comprising the index, the I.T. sector demonstrated the most momentum continuing its rally, generating a double digit return for the quarter and closing the year as the top performing sector.\n\n\nU.S. equity markets gained momentum on positive announcements surrounding phase one of the U.S. - China trade deal, strong economic data as well as a rally in technology...