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The year just ended was a good one for Canadian DB plans which finished with an annual return of 9.7 per cent, according to an RBC report.
The report, RBC Investor & Treasury Services All Plan Universe, showed the plans  marking nine consecutive years of positive returns. Additionally, the report show the median funded status at 96 per cent.
“2017 was a strong year for Canadian pension plans, with year-over-year returns, despite a backdrop of ongoing global economic and political volatility,” James Rausch, Head of Client Coverage, Canada, RBC Investor & Treasury Services, is quoted saying.
“The Bank of Canada rate hikes, the first in seven years, reverberated through the bond market, while the energy and commodity sectors continued to fluctuate and impact Canadian markets. Meanwhile, global equities continued to provide strong and stable returns. Fund managers will continue to pay close attention to these strong global returns and geopolitical developments to maintain a diversified portfolio across asset sectors and classes in the year ahead.”
More: Interest rates identified as a concern.

ARIA provides a forum for an informed discussion on retirement income adequacy, and other related issues, including pension and retirement coverage, and defined benefit pension plans – ARIA pensions blog, 12 Dunlop Street, Barrie, ON, L4N 1V6 – sitemanager@ariapension

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