Business
Canadian pensions rode commodity boom and emerging markets surged to outpace global indices in 2025
Canadian pensions rode commodity boom and emerging markets surged to outpace global indices in 20...
About this update from Royal Bank Of Canada
[{"type":"text","content":"Canadian pensions rode commodity boom and emerging markets surged to outpace global indices in 2025\n\n\nCanadian pensions rode commodity boom and emerging markets surged to outpace global indices in 2025\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\nCanada NewsWire\n\n\nTORONTO, Jan. 30, 2026 /CNW/ - RBC Investor Services (RBCIS) reported mixed performance for Canadian Defined Benefit pension plans under its administration in 2025: median returns were 0.6% for Q4 2025 and 7.9% for the full year. This followed a stronger year in 2024, where the median return was 1.6% for Q4 and 11.3% on an annual basis.\n\"Canadian pension plans navigated a year of stark contrasts in 2025, leveraging domestic equity strength amid global volatility,\" said Isabelle Tremblay, Director, Client Solutions, and Asset Owner Segment Lead, RBCIS. \"While 2024's gains were fueled by U.S. equities and the Information Technology sector, 2025 saw a decisive shift toward Canadian Materials and Financials. This highlights the importance of strategic rebalancing in a fragmenting global market, a lesson reinforced by last year's U.S.-centric rally and this year's currency-driven opportunities.\"\nCanadian equities in client plans returned 6.1% in Q4 2025 (versus 3.2% in Q4 2024) and 31.1% for the full year (versus 21.2% in 2024), closely tracking the TSX Composite Index, which gained 6.3% for the quarter and 31.7% annually. The TSX experienced its best year since 2009, driven by the Materials sector, which surged 100.6% annually (versus 21.4% in 2024), and Financials, up 35.3% (versus 30.1% in 2024). These sectors dominated the index's 2025 gains, contrasting with 2024's more evenly distributed growth.\nGlobal equities diverged sharply from 2024's pattern, with client plans returning 1.4% in Q4 (versus 4.1% in Q4 2024) and 16.7% for the year (compared to 24.1% in 2024). The MSCI World Index returned 1.6% in Q4 (versus 6.3% in Q4 2024) and 15.4% for the year (versus 29.4% in 2024), weighed down by U.S. equities, which underperformed relative to other developed markets. The S&P 500 Index lagged wi...