Northern Trust Pension Universe Data: Canadian Pension Plan Returns Advanced in Q2 as Global Equities Gained Momentum
The Northern Trust Canada Universe reports that Canadian pension plans saw positive returns in Q2 2024, with a median return of 1.1% for the quarter and 3.5% year-to-date. This performance was driven by global equities gaining momentum, despite volatility early in the period. The Bank of Canada and European Central Bank shifted to a less restrictive monetary policy, while other major central banks remained cautious.
Global equities performed well, led by emerging markets. The S&P 500 Index returned 5.4% in CAD, while the MSCI Emerging Markets Index advanced 6.3% in CAD. Canadian equities saw a modest decline of -0.5%. The Canadian Fixed Income market generated a gain of 0.9% for the quarter, benefiting from the Bank of Canada's interest rate cut.
Il Northern Trust Canada Universe riporta che i fondi pensione canadesi hanno registrato ritorni positivi nel secondo trimestre del 2024, con un ritorno mediano dell'1.1% per il trimestre e 3.5% da inizio anno. Questa performance è stata sostenuta dall'aumento della momentum delle azioni globali, nonostante la volatilità all'inizio del periodo. La Banca del Canada e la Banca Centrale Europea hanno adottato una politica monetaria meno restrittiva, mentre altre importanti banche centrali sono rimaste caute.
Le azioni globali hanno avuto buone performance, guidate dai mercati emergenti. L'Indice S&P 500 ha restituito 5.4% in CAD, mentre l'Indice MSCI dei Mercati Emergenti è avanzato 6.3% in CAD. Le azioni canadesi hanno visto un modestissimo calo di -0.5%. Il mercato delle obbligazioni canadesi ha generato un guadagno dello 0.9% per il trimestre, beneficiando del taglio dei tassi d'interesse della Banca del Canada.
El Northern Trust Canada Universe informa que los planes de pensiones canadienses experimentaron rendimientos positivos en el segundo trimestre de 2024, con un rendimiento mediano del 1.1% para el trimestre y 3.5% desde el inicio del año. Este rendimiento fue impulsado por el incremento del impulso de las acciones globales, a pesar de la volatilidad al inicio del período. El Banco de Canadá y el Banco Central Europeo pasaron a una política monetaria menos restrictiva, mientras que otros importantes bancos centrales se mantuvieron cautelosos.
Las acciones globales tuvieron un buen desempeño, lideradas por los mercados emergentes. El Índice S&P 500 tuvo un retorno de 5.4% en CAD, mientras que el Índice MSCI de Mercados Emergentes avanzó 6.3% en CAD. Las acciones canadienses experimentaron una leve caída de -0.5%. El mercado de renta fija canadiense generó una ganancia del 0.9% en el trimestre, beneficiándose de la reducción de tasas de interés del Banco de Canadá.
노던 트러스트 캐나다 유니버스는 캐나다 연금 계획이 2024년 2분기에 긍정적인 수익을 기록했으며, 분기당 중간 수익률이 1.1%이고 올해 들어 3.5%에 이르렀다고 보고했습니다. 이 성과는 글로벌 주식의 모멘텀 증가로 추진되었으나, 기간 초반의 변동성에도 불구하고 이루어진 것입니다. 캐나다 중앙은행과 유럽 중앙은행은 덜 제한적인 통화 정책으로 전환했으며, 다른 주요 중앙은행들은 조심스러운 태도를 유지했습니다.
글로벌 주식은 잘 운영되었으며, 이는 신흥 시장이 주도합니다. S&P 500 지수는 CAD로 5.4%의 수익률을 기록했으며, MSCI 신흥 시장 지수는 CAD로 6.3% 상승했습니다. 캐나다 주식은 -0.5%의 적당한 감소를 경험했습니다. 캐나다 채권 시장은 2분기에 0.9%의 이익을 기록하며, 캐나다 중앙은행의 금리 인하 혜택을 보았습니다.
Le Northern Trust Canada Universe rapporte que les régimes de retraite canadiens ont affiché des rendements positifs au deuxième trimestre 2024, avec un rendement médian de 1.1% pour le trimestre et 3.5% depuis le début de l'année. Cette performance a été favorisée par le gain de momentum des actions mondiales, malgré la volatilité en début de période. La Banque du Canada et la Banque centrale européenne ont adopté une politique monétaire moins restrictive, tandis que d'autres grandes banques centrales sont restées prudentes.
Les actions mondiales ont bien performé, menées par les marchés émergents. L'Indice S&P 500 a enregistré un retour de 5.4% en CAD, tandis que l'Indice MSCI des Marchés Émergents a progressé de 6.3% en CAD. Les actions canadiennes ont connu une légère baisse de -0.5%. Le marché obligataire canadien a généré un bénéfice de 0.9% ce trimestre, grâce à la réduction des taux d'intérêt par la Banque du Canada.
Das Northern Trust Canada Universe berichtet, dass die kanadischen Pensionskassen im 2. Quartal 2024 positive Renditen verzeichneten, mit einer medianen Rendite von 1.1% für das Quartal und 3.5% seit Jahresbeginn. Diese Leistung wurde durch globalen Aktien, die an Dynamik gewonnen haben, unterstützt, trotz der Volatilität zu Beginn des Zeitraums. Die Bank von Kanada und die Europäische Zentralbank haben zu einer weniger restriktiven Geldpolitik gewechselt, während andere große Zentralbanken vorsichtig bleiben.
Globale Aktien schnitten gut ab, angeführt von den Schwellenländern. Der S&P 500 Index erzielte eine Rendite von 5.4% in CAD, während der MSCI Index für Schwellenländer 6.3% in CAD zulegte. Kanadische Aktien verzeichneten einen leichten Rückgang von -0.5%. Der kanadische Anleihemarkt erzielte im Quartal einen Gewinn von 0.9%, was auf die Zinssenkung der Bank von Kanada zurückzuführen ist.
- Median Canadian Pension Plan returned 1.1% for Q2 and 3.5% year-to-date
- Global equities performed well, with S&P 500 Index returning 5.4% in CAD
- MSCI Emerging Markets Index advanced 6.3% in CAD
- Canadian Fixed Income market generated a gain of 0.9% for the quarter
- Bank of Canada lowered its benchmark policy rate by 25 bps to 4.75%
- Canadian equities declined -0.5% for the quarter
- Canadian unemployment hit its highest level since early 2022, rising to 6.4% in June
- U.S. unemployment rate rose unexpectedly to 4.1%, the highest since November 2021
Insights
The second quarter of 2024 brought a significant shift in the Canadian pension landscape, with the median Canadian Pension Plan returning
The Bank of Canada's decision to cut interest rates by
Global equities showed strength, with the S&P 500 returning
The Canadian fixed income market's positive performance, with the FTSE Canada Universe Bond Index gaining
Looking ahead, pension plans will need to navigate a complex environment of diverging central bank policies, persistent inflation concerns and potential economic slowdown. The ability to adapt to these changing conditions will be important for maintaining strong returns and ensuring long-term sustainability.
The Q2 2024 performance of Canadian pension plans reflects a nuanced economic landscape. The
Canada's unemployment rate rose to
The divergence between Canadian and global equity performance is noteworthy. While the S&P/TSX Composite declined
The technology sector's strong performance, especially in the U.S. and emerging markets, highlights the growing influence of AI and chip-related investments. Pension funds may need to reassess their sector allocations to capitalize on these trends while managing risk.
As central banks globally navigate the delicate balance between controlling inflation and supporting economic growth, pension plans must remain agile. The BoC's rate cut could signal a shift towards more accommodative policies, potentially impacting fixed income strategies and overall portfolio construction in the coming quarters.
The second quarter marked a pivotal shift in monetary policy to a less restrictive tone in some developed regions, led by the Bank of
Financial markets were challenged with volatility early in the period as geopolitical tensions mounted, combined with the release of stronger economic data supportive of persistent inflation. Despite the uncertainty, global equities marched higher throughout the quarter, led by emerging markets, concluding the period with attractive returns. Although Canadian equities posted a modest decline as pockets of softer economic data emerged, the Canadian bond market benefited from the BoC interest rate cut, resulting in a rebound into positive territory for the quarter. The current divergence in major central bank policies coupled with the Federal Reserve’s (Fed) consistent messaging regarding the direction of interest rates led to a modest strengthening of the
“As we conclude the first half of 2024, a theme of sustainability permeated across the globe. We have seen it through central bank actions as policymakers seek a sustainable path of inflation in an effort to normalize monetary policy. This theme continues to echo across the Canadian pension plan landscape as plan sponsors demonstrate resilience and agility while navigating the economic elements of high interest rates, persistent inflation and waves of volatility,” said Katie Pries, President and CEO of Northern Trust Canada.
The Northern Trust Canada universe tracks the performance of Canadian institutional defined benefit plans that subscribe to performance measurement services as part of Northern Trust’s asset service offerings.
Despite a challenging economic backdrop in the second quarter, corporate earnings remained strong and investor optimism prevailed, leading to solid returns for global equities for the period. Although the Canadian equity market witnessed weaker results relative to its global peers, the Canadian bond universe welcomed the first interest rate cut by the Bank of
-
Canadian Equities, as measured by the S&P/TSX Composite Index, declined -
0.5% for the quarter. The Materials and Consumer Staples sectors were the top performers for the period. The Health Care sector posted the weakest performance followed by the Real Estate and Information Technology sectors. -
U.S. Equities, as measured by the S&P 500 Index returned5.4% in CAD for the quarter, with the Information Technology and Communication Services sectors leading performance with double digit returns. The Materials, Industrials, Energy, Financials and Real Estate sectors retreated during the period. -
International developed markets, as measured by the MSCI EAFE Index, generated
0.9% in CAD for the quarter. Most sectors observed positive returns led by the Health Care and the Financials sectors, while the Consumer Discretionary and Real Estate sectors were the most notable laggards during the period. -
The MSCI Emerging Markets Index advanced
6.3% in CAD for the quarter. Most sectors achieved positive returns with the Information Technology sector leading the index with strong performance, while the Health Care, Consumer Staples and the Materials sectors produced negative returns for the period.
The Canadian economy witnessed some early signs of slower economic growth, disinflationary pressures along with softening employment. Unemployment hit its highest level since early 2022, rising to
The
International markets observed progress in efforts to bring inflation closer to central bank targets. The European Central Bank (ECB) lowered interest rates by 25 bps, marking the start of an easing cycle for the ECB. Although inflation eased in June, the committee remains cautious regarding its inflation outlook and suggested further rate cuts would only come slowly. The Bank of
Emerging markets gained momentum during the second quarter, outperforming developed markets. Much of the outperformance was attributed to investor interest in the AI/Chips space. The People’s Bank of China (PBoC) held the one-year and five-year Loan Prime Rates (LPR) steady at
The Bank of
The Canadian Fixed Income market, as measured by the FTSE Canada Universe Bond Index, generated a gain of
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in
Northern Trust Corporation, Head Office: 50 South La Salle Street,
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Doug Holt
(312) 557-1571
Dh124@ntrs.com
Source: Northern Trust Corporation
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