Press release
Northern Trust Pension Universe Data: Canadian Plan Sponsors stay on positive path in Third Quarter of 2019
TORONTO--(BUSINESS WIRE)-- Canadian defined benefit plans posted positive investment returns in the third quarter of 2019, according to the Northern Trust
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[{"type":"text","content":" TORONTO--(BUSINESS WIRE)--\nCanadian defined benefit plans posted positive investment returns in the third quarter of 2019, according to the Northern Trust Canada Universe, despite periods of market volatility driven by global economic and political events during the three months ending September 30.\n\n\nThe median plan in the Northern Trust Canada Universe generated a 1.6 percent return in the third quarter. The 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\nMarkets were roiled during the quarter by developments in U.S.-China trade negotiations, Brexit, an impeachment inquiry in the U.S., escalating tensions between the U.S., Iran and Saudi Arabia, civil unrest in Hong Kong and the crash of Argentina’s Merval Equity Index. A brief inversion of the U.S. yield curve also sparked investor fears surrounding the future state of the global economy. However, North American stock markets ended the quarter with solid gains.\n\n\n“Despite a backdrop of persistent volatility, fear and uncertainty, Canadian pension plans displayed resilience in the third quarter,” said Arti Sharma, President and CEO of Northern Trust Canada. “Although returns moderated slightly from the previous two quarters, year-to-date the median pension plan remains in positive territory positioned at a healthy 11.3 percent.”\n\n\nDuring the quarter, a number of central banks, including the U.S. Federal Reserve, responded to the fears and uncertainties with an accommodative tone, cutting interest rates and engaging in further stimulus. In Canada, the central bank held steady, supported by strong economic data coming out of the second quarter and with inflation meeting the Bank of Canada’s target. The Canadian economy continues to be supported by relatively healthy employment and a recovering housing market.\n\n\nCanadian Equities as measured by the S&P/TSX Composite generated a return of 2.5 percent for the third quarter, with nine out of the eleven sectors finishing in positive territory. Utilities and Real Estate led with the strongest gains, and the Health Care sector continued to have the weakest results.\n\n\nThe U.S. equity market was supported by solid economic growth, mild inflation and strong consumer confidence, allowing t...