Bonds and equities led asset growth, while real estate decreased
According to Statistics Canada, the market value of assets held by Canadian trusteed pension funds reached $2.2tn in the fourth quarter.
This marks a year-over-year increase of $95.9bn, or 4.5 percent.
Among the five largest asset categories, which together accounted for 92.4 percent of the total market value at the end of the fourth quarter, four categories saw increases over the previous year.
Bonds experienced the largest dollar increase, rising by $52.9bn, or 9.9 percent, followed by equities with a $26.1bn increase, or 3.2 percent. Other assets grew by $20.1bn, or 13.1 percent, and infrastructure increased by $17.6bn, or 8.7 percent. Real estate, however, decreased by $7.9bn, or 3.0 percent.
Domestic assets rose by $26.7bn, or 3 percent, while foreign assets increased by $46.6bn, or 4.5 percent, year-over-year in the fourth quarter. Canadian trusteed pension funds posted a net income of $28bn in the fourth quarter, up 66.3 percent from $16.8bn one year earlier.
Total revenue increased by 32.6 percent, or $13.6bn, to $55.2bn, while expenditures grew by 9.8 percent, or $2.4bn, to $27.2bn year-over-year.
The total market value of domestic holdings amounted to $904.2bn, reflecting a 3.0 percent increase from the same quarter the previous year.
Bonds and infrastructure were the only domestic asset categories to grow, with bonds increasing by $41.8bn, or 9.3 percent, and infrastructure by $3.1bn, or 6.9 percent. Short-term investments fell by $10.5bn, or 12.5 percent, equities by $4.1bn, or 2.2 percent, and real estate by $3.7bn, or 3.0 percent.
Foreign assets saw growth in three of five categories in the fourth quarter, led by equities which rose by $30.1bn, or 4.8 percent. Infrastructure increased by $14.5bn, or 9.3 percent, and bonds by $11.2bn, or 12.4 percent.
Short-term investments decreased by $5bn, or 39.9 percent, and real estate assets fell by $4.3bn, or 2.9 percent. Overall, total foreign assets increased by $46.6bn, or 4.5 percent, to just under $1.1tn.
Assets of unknown nationality amounted to $263.5bn, representing 11.7 percent of the total value of assets at the end of 2023, up from 11.2 percent a year earlier.
In the public sector, the value of assets rose by $64.6bn, or 3.7 percent, nearly reaching $1.8tn in the fourth quarter. Private sector assets increased by $31.3bn, or 7.4 percent, to $456.5bn.
The proportion of total assets held by the public sector decreased from 80.2 percent at the end of 2022 to 79.7 percent at the end of 2023.
