Despite these headwinds, some resilience persisted across global economies and pension portfolios.
“Economies have remained resilient while navigating through what has been undoubtedly a tumultuous landscape. Pension plans continue to harness this resiliency by remaining focused on key underlying data, their core principles and the sound investment strategies formulated by plan sponsors to secure long term sustainability,” said Katie Pries, country executive for Northern Trust Asset Servicing in Canada.
Equity markets delivered mixed results. Canadian stocks led major markets, rising 3.9% over the quarter, buoyed by strong energy sector performance amid higher oil prices. Materials and utilities also posted double-digit gains, while information technology suffered steep losses exceeding 20%.
In contrast, US equities declined 2.6% in Canadian dollar terms, dragged down by weakness in sectors such as financials, consumer discretionary, and technology.
Fixed income offered limited relief. The Canadian bond market edged up 0.2%, with federal bonds outperforming provincial and corporate debt, and mid-term maturities leading returns.