Canadian Plan Sponsors Median Returns Remain Positive in Q3 2024, According to the BNY Canadian Asset Strategy View Universe

Canadian plan sponsors report a fourth consecutive quarter of positive returns, driven by resilient performance in all major asset classes.

TORONTO, Nov. 1, 2024 /CNW/ - The median return of the BNY Canadian Asset Strategy View universe, a BNY Global Risk Solutions fund-level tracking service, was 4.67% for the third quarter of 2024. The one-year median return as of September 30, 2024, was 17.96%, while the median 10-year annualized return was 7.12%.

The BNY Canadian Asset Strategy View universe results are based on $316 billion worth of investment assets in Canadian investment plans, with the average plan size of $4.3 billion. The universe is designed to provide peer comparisons by plan type and size, and it comprises 73 Canadian corporate, public and university pension plans. Additional insight into the plan results is provided by BNY's Asset Strategy View sub asset class universes.

"Despite significant volatility in the market and the increased geopolitical instability, Canadian pension plans experienced another robust quarter adding to their strong performance this year. The significant shift in interest rate expectations supported by decreasing inflation provided a strong tail wind for these positive results," said David Cohen, Director of Global Risk Solutions, BNY. "Major Equity markets saw strong performance in Q3 with many indices reaching new all-time highs, while Fixed Income was also a contributor with the help of lower yields. Private asset classes remain stable providing low single digit returns in the third quarter".

Among traditional asset classes, Canadian Equity posted the highest performance, with a quarterly median return of 9.20%. Global Equity returns were the lowest, posting a quarterly return of 5.07%.

With respect to non-traditional asset classes, Hedge Funds delivered the strongest performance, with a quarterly median return of 1.58%. Private Equity ended the quarter with a median return of 1.35% while Real Estate delivered a negative performance for the quarter returning -0.31%.

Q3 2024 Highlights of the BNY Canadian Asset Strategy View Universe

• The BNY Asset Strategy View universe of Canadian pension plans over $1 billion underperformed the median return of the Total Canadian Asset Strategy View Universe in Q3 2024.
• Corporate Pension Plans posted a median performance of 5.19% for the third quarter, exceeding both Public Pension Plans and Foundations & Endowments universes.
• All major equity segments posted positive returns in Q3.
  • Canadian Equity posted a positive median return of 9.20% in the third quarter, behind the S&P/TSX Composite Index return of 10.54%.
  • U.S. Equity posted a quarterly median return of 5.53%, exceeding the S&P 500 Index return of 4.54%.
  • Global Equity reported a median return of 5.07% in Q3, slightly lagging the MSCI World Index return of 5.11%.
  • International Equity posted a quarterly median return of 6.02%, outperforming the MSCI EAFE Index return of 5.97%
• Emerging Markets Equity posted a positive median performance for the quarter of 5.02%, underperforming the MSCI Emerging Markets Index return of 7.49%.
• The Canadian Fixed Income median return was 5.31% in the third quarter of 2024. Fixed Income outperformed relative to the FTSE Canada Universe Bond Index for the quarter, which returned 4.66%.
• Private Equity reported a positive quarterly median return of 1.35% for the third quarter, Real Estate reported a quarterly median return of -0.31%. Hedge Funds reported a return of 1.58%.

BNY Canadian Asset Strategy View Universe Median Plan Returns*

Universe Medians	Q3 2024	One-Year	Three-Years	Five-Years	Ten-Years
Canadian Asset Strategy View Total Fund	4.67	17.96	5.10	6.63	7.12
Canadian Equity	9.20	24.12	10.26	11.77	8.55
U.S. Equity	5.53	29.68	12.65	13.94	13.40
International Equity	6.02	24.20	6.92	8.97	7.89
Global Equity	5.07	29.76	9.85	12.34	11.79
Canadian Fixed Income	5.31	15.32	0.10	1.03	2.59
Canadian Foundations & Endowments	4.82	20.01	6.44	8.45	7.62
Canadian Public Pension Plans	4.51	16.83	6.23	7.75	7.28
Canadian Corporate Pension Plans	5.19	18.68	4.08	5.31	6.62

*All returns are posted gross of fee results, calculated in Canadian dollars.

About CIBC Mellon

CIBC Mellon is a Canadian company exclusively focused on the investment servicing needs of Canadian institutional investors and international institutional investors into Canada. Founded in 1996, CIBC Mellon is 50-50 jointly owned by The Bank of New York Mellon (BNY) and Canadian Imperial Bank of Commerce (CIBC). CIBC Mellon's investment servicing solutions for institutions and corporations are provided in close collaboration with our parent companies, and include custody, multicurrency accounting, fund administration, recordkeeping, pension services, exchange-traded fund services, securities lending services, foreign exchange processing and settlement, and treasury services. As at September 30, 2024, CIBC Mellon had more than C$2.9 trillion of assets under administration on behalf of banks, pension funds, investment funds, corporations, governments, insurance companies, foreign insurance trusts, foundations and global financial institutions whose clients invest in Canada. CIBC Mellon is part of the BNY Mellon network, which as at September 30, 2024, had US$52.1 trillion in assets under custody and/or administration. CIBC Mellon is a licensed user of the CIBC trade-mark and certain BNY trade-marks, is the corporate brand of CIBC Mellon Global Securities Services Company and CIBC Mellon Trust Company, and may be used as a generic term to refer to either or both companies.

Information containing any historical information, data or analysis should not be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. Past performance does not guarantee future results. The Information should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. None of the Information constitutes an offer to sell (or a solicitation of an offer to buy), any security, financial product or other investment vehicle or any trading strategy. Some products or services are available only through BNY.

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Media Contact:

Alexandra DeCata, Corporate Communications, CIBC Mellon, 416-643-6126, alexandra.decata@cibcmellon.com

SOURCE CIBC Mellon