Press release
Northern Trust Pension Universe Data: Canadian Pension Plans Benefit From Sharp Rebound in Global Equities During Second Quarter 2020
TORONTO--(BUSINESS WIRE)-- Strong equity performance in the second quarter of 2020 helped Canadian defined benefit plans recover most of the investment
About this update from Northern Trust Corporation
[{"type":"text","content":" TORONTO--(BUSINESS WIRE)--\nStrong equity performance in the second quarter of 2020 helped Canadian defined benefit plans recover most of the investment losses experienced during the initial days of the Covid-19 pandemic, according to the Northern Trust Canada Universe. Major equity markets responded favorably as economies reopened and stimulus packages gained traction, concluding the quarter with double digit gains.\n\n\n“Despite the level of volatility witnessed over the last several months, Canadian pension plans are tracking in a positive direction, with the median plan in the Northern Trust Canada Universe generating a solid 9.9% gain for the second quarter,” said Katie Pries, President and CEO of Northern Trust Canada. “Although there still remains a heightened level of uncertainty in the current environment as the pandemic continues to run its course, plan sponsors continue to persevere as they navigate on a path to sustainability.”\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 service offerings.\n\n\nGlobal financial markets rallied in the second quarter, rebounding from the sharp drop in equities at the start of the global pandemic crisis. Trade frictions and geopolitical tensions resurfaced but were soon overshadowed by extraordinary government measures to curb the economic fallout from the pandemic. Massive fiscal stimulus packages implemented around the globe, coupled with accommodative central bank policies, provided a solid foundation for the markets. During the latter part of the quarter, many countries slowly emerged from lockdowns and economies began to reopen, triggering early signs of improvement in economic activity and fueling investor optimism.\n\n\n\nCanadian Equities, as measured by the S&P/TSX Composite, generated a return of 17.0% for the quarter, with the majority of all sectors posting healthy gains.\n\n\nU.S. equities climbed back from recent lows with the S&P 500 gaining 15.3% in CAD for the quarter.\n\n\nInternational developed markets, as measured by the MSCI EAFE Index, concluded the quarter with a double digit return, generating 10.1% in CAD.\n\n\nThe MSCI Emerging Markets index witnessed a 13.1% return in CAD during the second quarter, with all sector...