Canadian Defined Benefit Pension Plans Rebound In Q1 2019: RBC Investor & Treasury Services - Q1 2019 Gains More Than Reverse Q4 2018 Losses

Canadian and global equities rallied to post strong Q1 2019 returns, helping to lift quarterly returns to 7.2 per cent in the first three months of the year, according to the RBC Investor & Treasury Services All Plan Universe (Q4 2018 returns sat at -3.5 per cent).

ADDITIONAL RESULTS

• Q1 2019 Canadian equities, led by a rebound in oil price, bounced back to post a return of 12.4 per cent compared to a loss of -10.6 per cent in Q4 2018, while the TSX Composite Index posted a Q1 2019 return of 13.3 per cent compared to Q4 2018 return of -10.1 per cent.
• All 11 of the TSX sectors posted gains in Q1 2019.
• Global equities followed a similar path, returning 10 per cent in Q1 2019, reversing a Q4 2018 loss of -7.8 per cent, while the MSCI World Index also returned 10 per cent in Q1 2019 compared to a Q4 2018 loss of -8.5 per cent.
• Canadian fixed income posted positive returns of 5.6 per cent, up from 1.8 in Q4 2018. Long-term bonds had a strong Q1 2019 that helped to propel returns. The FTSE Canada Universe bond index also forged ahead in Q1 2019, posting a return of 3.9 per cent, up from 1.8 per cent in Q4 2018.

QUOTE

“Canadian defined benefit pension plans started 2019 in positive territory as the TSX reached an all-time high, reversing many of the 2018 losses, but asset managers will need to remain vigilant as we head toward the mid-year mark. Many of the underlying concerns, including trade wars, slowing global economic growth as well as ongoing geopolitical unrest are still very relevant and will force asset managers to re-examine their portfolios and risk exposure.” 

• David Linds, Managing Director, Head of Canadian Asset Servicing, RBC Investor & Treasury Services

HISTORIC PERFORMANCE