Canadian pension plans close 2024 with strong annual gains

The BNY Canadian Asset Strategy View universe, a fund-level tracking service by BNY Global Risk Solutions, recorded a median return of 1.96 percent for the fourth quarter of 2024.  

The one-year median return reached 12.28 percent as of December 31, 2024, while the median 10-year annualized return stood at 6.92 percent. 

The universe, which tracks $318bn in Canadian investment plan assets, includes 72 corporate, public, and university pension plans, with an average plan size of $4.4bn.  

It provides peer comparisons by plan type and size, with additional insights available through BNY’s Asset Strategy View sub-asset class universes.   

David Cohen, director of Global Risk Solutions at BNY, noted the resilience of Canadian pension plans despite economic and political uncertainties.  

“Most Equity markets posted positive returns in Q4 despite significant volatility towards the end of the quarter while fixed income detracted slightly due to an increase in yields. Private asset classes continue to provide strong support extending their positive performance for the year,” Cohen said.   

Among traditional asset classes, US Equity had the highest quarterly median return at 8.08 percent, while International Equity recorded the lowest performance with a negative return of -0.63 percent.   

Canadian Equity delivered a quarterly median return of 2.97 percent, falling behind the S&P/TSX Composite Index return of 3.76 percent.  

US Equity posted an 8.08 percent median return, underperforming the S&P 500 Index return of 9.02 percent. Global Equity returned 4.08 percent, below the MSCI World Index return of 6.39 percent.   

International Equity showed a negative return of -0.63 percent but performed better than the MSCI EAFE Index return of -2.13 percent.  

Emerging Markets Equity posted a flat return of 0.09 percent, outperforming the MSCI Emerging Markets Index return of -1.88 percent.   

Canadian Fixed Income had a negative median return of -0.16 percent for the quarter, lagging behind the FTSE Canada Universe Bond Index return of -0.04 percent.   

Non-traditional asset classes showed positive performance, with Hedge Funds posting the strongest quarterly median return at 7.79 percent. Private Equity followed with a 7.26 percent return, while Real Estate delivered a 2.44 percent return.   

The BNY Canadian Asset Strategy View universe of pension plans over $1bn outperformed the median return of the Total Canadian Asset Strategy View universe in Q4 2024.   

Foundations & Endowments recorded a quarterly median return of 2.99 percent, surpassing both Public and Corporate Pension Plans. Public Pension Plans posted a 2.59 percent return, while Corporate Pension Plans returned 1.08 percent.   

The BNY Canadian Asset Strategy View universe reported the following median plan returns across different time periods: 

^{Source: BNY Global Risk Solutions}