2024 Q1 performance of Canadian asset strategy

The BNY Mellon Canadian Asset Strategy View universe, a fund-level tracking service by BNY Mellon Global Risk Solutions, has reported a median return of 3.68 percent for the first quarter of 2024.  

As of March 31, the one-year median return stood at 9.86 percent, and the median ten-year annualized return was 6.87 percent. 

  This universe, comprising $306.2bn in investment assets from Canadian investment plans, reflects an average plan size of $4.0bn. It includes 76 Canadian corporate, public, and university pension plans, providing peer comparisons by plan type and size.   

David Cohen, director of Global Risk Solutions at BNY Mellon, noted, “Canadian pension plans continued their robust performance with a second consecutive positive quarter fueled by widespread enthusiasm around upcoming interest rate cuts and the AI-related technology stock boom, despite increased global political tensions. Equities delivered strong returns in Q1 while Canadian fixed income detracted following an increase in yields.”   

In traditional asset classes, US Equity showed the highest performance with a quarterly median return of 11.75 percent.  

Conversely, Canadian Fixed Income recorded the lowest with a -1.49 percent return. Among non-traditional asset classes, Hedge Funds led with a 6.20 percent return. Private Equity and Real Estate followed with returns of 4.85 percent and 0.54 percent, respectively.   

Highlighting Q1 2024, the universe of Canadian pension plans over $1bn outperformed the median return of the total universe. Canadian Foundations and Endowments excelled with a 5.95 percent return, surpassing both Public and Corporate Pension Plan universes.   

Key equity results included:   

• Canadian Equity posted a median return of 6.88 percent, slightly above the S&P/TSX Composite Index return of 6.62 percent. 

• US Equity recorded an 11.75 percent return, trailing the S&P 500 Index return of 13.46 percent. 

• Global Equity reported a return of 11.23 percent, below the MSCI World Index return of 11.87 percent. 

• International Equity and Emerging Markets Equity posted returns of 6.56 percent and 5.11 percent, respectively, both slightly lagging their corresponding MSCI Index returns. 

Canadian Fixed Income underperformed compared to the FTSE Canada Universe Bond Index, which returned -1.22 percent for the quarter. Private Equity, Real Estate, and Hedge Funds also reported positive returns for the period.