Press release
Northern Trust Pension Universe Data: Rising Equity Markets Lift Canadian Pension Plan Q2 Returns
TORONTO--(BUSINESS WIRE)-- Canadian Pension Plan investment returns advanced during the second quarter, as global equities overcame inflationary fears and
About this update from Northern Trust Corporation
[{"type":"text","content":" TORONTO--(BUSINESS WIRE)--\nCanadian Pension Plan investment returns advanced during the second quarter, as global equities overcame inflationary fears and continued an upward trend, according to the Northern Trust Canada Universe.\n\nFinancial markets emerged from the stresses inflicted by the global pandemic and shifted focus to the fundamental factors underpinning the economy – inflation, employment and earnings growth. The second quarter witnessed periods of surging commodity prices and elevated inflation readings which sparked a watchful eye from central banks and heightened the fear of rising interest rates. Despite clear signs of economic growth, these uncertainties cascaded brief windows of doubt across both stocks and bonds alike. However these periods of turbulence faded, allowing volatility to diminish later in the quarter, as markets recognized base effects and supply chain disruptions played a critical role in higher inflation figures.\n\n“The second quarter of 2021 can be characterized as a period of transition, whereby global economies continued to eye reopening while charting a path to a normalized growth environment. The median Canadian Pension Plan returned 4.1% for the quarter, a reflection of positive equity markets and a healthy economic climate. The course of the pandemic has certainly taught us attributes about strength and adaptation, fundamentals we can all relate to. These key components continue to build on the foundation of Canadian pension plans today, a testament to their longevity and long term sustainability,” 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\nFinancial markets navigated a bumpy road as the traditional macro environment remained much of the focus this quarter. In particular, the potential for rising inflation caught the attention of central banks, creating uncertainty surrounding the timing of tapering and tightening of monetary policy. Despite volatility around inflation pressures and monetary policy, the global economy regained strength, corporate fundamentals remained strong and central banks maintained an accommodative stance. This positive economic backdrop...