Northern Trust Pension Universe Data: Canadian Pension Plans Generated Positive Q1 Returns in Turbulent Markets

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[{"type":"text","content":" TORONTO--(BUSINESS WIRE)--\nCanadian pension plans showed strength and resilience amidst a tumultuous backdrop during the first quarter of 2025, with the median pension plan rising 1.5% for the three-month period, according to the Northern Trust Canada Universe.\n\nFinancial markets were roiled in Q1 by heightened macro uncertainty and elevated levels of volatility, primarily driven by tariff directives announced by the U.S. administration. Although macro-economic data, a key barometer for monetary policy, remained relatively healthy, trade tensions cast a wave of trepidation across markets. Some major central banks chose to cut interest rates as progress on inflation continued, while the U.S. Federal Reserve (Fed) maintained its level of interest rates and exercised a cautious view.\n\nDespite the level of fear created by escalating tariff action, non-U.S. equities generally produced overall positive returns. Meanwhile, the U.S. stock market experienced a correction during the quarter which ended in negative performance. Bonds behaved protectively in nature, generating positive results for the quarter, while gold surged to a record high in mid-March. The Canadian dollar experienced significant swings yet closed the quarter at a level near where it began the period.\n\n“Fear and uncertainty cascaded across financial and currency markets during the first quarter, dampening the sentiment of market participants across the globe. As investors look for clarity and markets seek out a path to certainty and stability, pension plan sponsors remained sound and committed to protecting plan assets while weathering this volatile period,” said Katie Pries, CEO Northern Trust Canada.\n\nThe Northern Trust Canada universe tracks the performance of Canadian institutional defined benefit plans that subscribe to performance measurement services as part of Northern Trust’s asset service offerings.\n\nVolatility remained in place throughout the first quarter, testing investor sentiment. Tariff turbulence rippled across markets, but global equities generally moved higher for the quarter, except for U.S. stocks which experienced a sharp decline. Bonds navigated well through the market swings, concluding the quarter with healthy positive returns.\n\n\nCanadian Equities, as measured by the S&P/TSX Composite Index, rose 1.5% for the quarter. The Materia...

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