TORONTO, April 30,
2024 /CNW/ - RBC Investor Services (RBCIS)
released a report highlighting a median return of 3.6% for their
defined benefit (DB) pension plans during the first quarter of
2024.
Canadian equities showed a 6.8% increase for client plans,
aligning closely with the TSX Composite Index's 6.6% rise, led by
the energy (+13.1%) and industrials (+11.1%) sectors. Meanwhile,
foreign equities for client plans generated gains of 9.8%, slightly
below the MSCI World Index return of 11.7%.
Sylvain Gervais, managing
director of Business Development at RBCIS, noted, "A growing
interest in AI-exposed stocks drove growth-oriented equities to
outpace value equities. For instance, MSCI World Growth yielded
13.1% compared to MSCI World Value's 10.3%. The communication
services, information technology, and financials sectors performed
strongly, with returns of 15.9%, 15.2%, and 13.4% respectively.
"While equity performance hints at an improving market
sentiment, plans' Canadian fixed income weighting significantly
influenced their portfolio performance this quarter," continued
Gervais.
The Canadian fixed income component of plans saw a negative
return of -1.9%, a sharp decline from the prior quarter, mirroring
the FTSE Canada Universe Bond Index's -1.2% return. The FTSE Canada
Long Term Bond Index (-3.6%) underperformed the FTSE Canada Short
Term Bond Index (+0.3%) due to rising yields.
Gervais also emphasized the importance of strategic planning for
the future, stating, "Informed decision-making and proactive risk
management will be instrumental in capitalizing on emerging
opportunities while mitigating potential threats. Looking ahead,
asset managers are focusing on diversification strategies and
technological advancements to navigate the evolving financial
landscape effectively."
About RBC
Royal Bank of Canada is a global financial institution with
a purpose-driven, principles-led approach to delivering leading
performance. Our success comes from the 94,000+ employees who
leverage their imaginations and insights to bring our vision,
values and strategy to life so we can help our clients thrive and
communities prosper. As Canada's
biggest bank and one of the largest in the world, based on market
capitalization, we have a diversified business model with a focus
on innovation and providing exceptional experiences to our more
than 17 million clients in Canada,
the U.S. and 27 other countries. Learn more at rbc.com.
We are proud to support a broad range of community initiatives
through donations, community investments and employee volunteer
activities. See how at rbc.com/community-social-impact.
About RBC Investor Services
RBC Investor Services
delivers asset servicing solutions to Canadian asset managers and
asset owners, investment counsellors and other financial
institutions. Part of Royal Bank of Canada, Canada's largest bank and one of the top 10
banks globally, our focus is on safeguarding the assets of our
clients and supporting their growth. RBC Investor Services has over
C$2.5 trillion of assets under
administration. Learn more at rbcis.com.
SOURCE RBC Investor Services