Canadian plan sponsors kick-off 2024 with another positive
quarter
TORONTO, May 3, 2024 /CNW/ - The median return of the BNY
Mellon Canadian Asset Strategy View universe, a BNY Mellon Global
Risk Solutions fund-level tracking service, was 3.68% for the first
quarter of 2024. The one-year median return as of March 31, 2024, was 9.86%, while the median
10-year annualized return was 6.87%.
The BNY Mellon Canadian Asset Strategy View universe results are
based on $306.2 billion worth of
investment assets in Canadian investment plans, with the average
plan size of $4.0 billion. The
universe is designed to provide peer comparisons by plan type and
size, and it comprises 76 Canadian corporate, public and university
pension plans. Additional insight into the plan results is provided
by the BNY Mellon's Asset Strategy View sub asset class
universes.
"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. This is despite the increased political
tensions globally," said David
Cohen, Director of Global Risk Solutions, BNY Mellon.
"Equities, across all regions, delivered strong returns in Q1 while
Canadian fixed income detracted following an increase in yields.
Private asset classes continue to provide positive contributions to
the Canadian pension universe with solid returns in the
quarter."
Among traditional asset classes, US Equity posted the highest
performance, with a quarterly median return of 11.75%. Canadian
Fixed Income returns were the lowest, posting a negative quarterly
return of -1.49%.
With respect to non-traditional asset classes, Hedge Funds
delivered the strongest performance, with a quarterly median return
of 6.20%. Private Equity ended the quarter with a median return of
4.85% while Real Estate delivered a flat performance for the
quarter returning 0.54%.
Q1 2024 Highlights of the BNY Mellon Canadian Asset Strategy
View Universe
- The BNY Mellon Asset Strategy View universe of Canadian pension
plans over $1 billion outperformed
the median return of the Total Canadian Asset Strategy View
Universe in Q1 2024.
- Canadian Foundations and Endowments posted a median performance
of 5.95% for the first quarter exceeding both Public Pension Plan
and Corporate Pension Plan universes.
- All major equity segments posted positive returns in Q1.
-
- Canadian Equity posted a median return of 6.88% in the first
quarter, ahead of the S&P/TSX Composite Index return of
6.62%.
- U.S. Equity posted a quarterly median return of 11.75%, lagging
the S&P 500 Index return of 13.46%.
- Global Equity reported a median return of 11.23% in Q1,
underperforming the MSCI World Index return of 11.87%.
- International Equity posted a quarterly median return of 6.56%,
lagging the MSCI EAFE Index return of 8.71%
- Emerging Markets Equity posted a positive median performance
for the quarter of 5.11%, slightly behind the MSCI Emerging Markets
Index return of 5.13%.
- The Canadian Fixed Income median return was -1.49% in the first
quarter of 2024. Fixed Income underperformed relative to the FTSE
Canada Universe Bond Index for the quarter, which returned
-1.22%.
- Private Equity reported a positive quarterly median return of
4.85% for the first quarter, Real Estate reported a quarterly
median return of 0.54%. Hedge Funds reported a return of
6.20%.
BNY Mellon Canadian Asset Strategy View Universe Median Plan
Returns*
Universe
Medians
|
Q1
2024
|
One-Year
|
Three-Years
|
Five-Years
|
Ten-Years
|
Canadian Asset Strategy
View Total Fund
|
3.68
|
9.86
|
4.95
|
6.13
|
6.87
|
Canadian
Equity
|
6.88
|
13.93
|
10.04
|
10.77
|
8.24
|
U.S. Equity
|
11.75
|
25.96
|
12.72
|
13.37
|
13.36
|
International
Equity
|
6.56
|
13.23
|
5.00
|
7.25
|
7.02
|
Global
Equity
|
11.23
|
22.47
|
9.54
|
11.41
|
11.33
|
Canadian Fixed
Income
|
-1.49
|
2.70
|
-1.36
|
0.69
|
2.36
|
Canadian Foundations
& Endowments
|
5.95
|
12.16
|
-
|
-
|
-
|
Canadian Public Pension
Plans
|
4.35
|
9.97
|
5.93
|
7.10
|
6.97
|
Canadian Corporate
Pension Plans
|
2.78
|
7.81
|
3.33
|
4.88
|
6.33
|
*All returns are posted
gross of fee results, calculated in Canadian dollars.
|
About CIBC Mellon
CIBC Mellon is a Canadian company exclusively focused on the
investment servicing needs of Canadian institutional investors and
international institutional investors into Canada. Founded in 1996, CIBC Mellon is 50-50
jointly owned by The Bank of New York Mellon (BNY Mellon) and
Canadian Imperial Bank of Commerce (CIBC). CIBC Mellon's investment
servicing solutions for institutions and corporations are provided
in close collaboration with our parent companies, and include
custody, multicurrency accounting, fund administration,
recordkeeping, pension services, exchange-traded fund services,
securities lending services, foreign exchange processing and
settlement, and treasury services. As at March 29, 2024, CIBC Mellon had more than
C$2.8 trillion of assets under
administration on behalf of banks, pension funds, investment funds,
corporations, governments, insurance companies, foreign insurance
trusts, foundations and global financial institutions whose clients
invest in Canada. CIBC Mellon is
part of the BNY Mellon network, which as at March 29, 2024, had US$48.8 trillion in assets under custody
and/or administration. CIBC Mellon is a licensed user of the CIBC
trade-mark and certain BNY Mellon trade-marks, is the corporate
brand of CIBC Mellon Global Securities Services Company and CIBC
Mellon Trust Company, and may be used as a generic term to refer to
either or both companies.
Information containing any historical information, data or
analysis should not be taken as an indication or guarantee of any
future performance, analysis, forecast or prediction. Past
performance does not guarantee future results. The Information
should not be relied on and is not a substitute for the skill,
judgment and experience of the user, its management, employees,
advisors and/or clients when making investment and other business
decisions. None of the Information constitutes an offer to sell (or
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or services are available only through BNY Mellon.
For more information, including CIBC Mellon's latest knowledge
leadership on issues relevant to institutional investors active in
Canada, visit
www.cibcmellon.com.
Media Contact:
Alexandra DeCata, Corporate
Communications, CIBC Mellon, 416-643-6126,
alexandra.decata@cibcmellon.com
SOURCE CIBC Mellon