Press release
Northern Trust Pension Universe Data: Canadian Pension Plans Harness the Strength of Equity Returns During Third Quarter 2020
TORONTO--(BUSINESS WIRE)-- Strong global equity markets continue to augment pension plan returns with Canadian defined benefit plans returning 3.2% for the
About this update from Northern Trust Corporation
[{"type":"text","content":" TORONTO--(BUSINESS WIRE)--\nStrong global equity markets continue to augment pension plan returns with Canadian defined benefit plans returning 3.2% for the third quarter of 2020, according to the Northern Trust Canada Universe.\n\nEquity markets navigated through pockets of volatility, maintaining resilience and closing the quarter in positive territory. Financial markets appeared to shrug off fears perpetuated by the coronavirus pandemic and recent sell-off in technology stocks, and focus on progress in vaccine development and hopes for further stimulus relief. Policymakers around the world continued to deploy the financial tools necessary in an effort to bridge economic gaps as global economies slowly regained strength while transitioning through the reopening phase.\n\n“The global pandemic has undoubtedly accelerated the pace of change for many defined benefit pension plans over the course of recent months; namely in the form of financial, regulatory as well as technology transformation. As pension plan sponsors embrace this evolution of change and the adaptation to a virtual work environment, they remain vigilant on preserving plan assets while generating investment results supportive of long-term sustainability and growth,” said Katie Pries, President and CEO of Northern Trust Canada.\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\nOnce stressed by the economic impact inflicted by the spread of the coronavirus, equity markets shifted focus during the third quarter to the power of government-funded stimulus, a dominating theme prevalent in today’s environment. The convergence of accommodative monetary policy and expansive fiscal policy continued to drive global financial markets in a positive direction. These unprecedented stimuli combined with progress in vaccine development continued to propel further optimism, setting a cautiously positive tone for financial markets.\n\n\nCanadian Equities, as measured by the S&P/TSX Composite Index, generated a return of 4.7% for the quarter, with all sectors posting gains with the exception of the Health Care and Energy sectors.\n\n\nU.S. equities continued to extend solid gains with the S&P 500 Index recording a new all-tim...