Oil drives up Canadian pension returns
While Australian superannuation funds attempt to convey the bad news about negative returns to their members, their Canadian counterparts have found themselves in more positive territory over the past quarter, according to new data released this week by RBC Dexia Investor Services.
According to the RBC Dexia data, Canadian pension plans were lifted into positive territory during the second quarter due to soaring energy stocks.
It said the pension funds had earned 1 per cent in the June quarter, trimming six-month losses to just 1 per cent.
Commenting on the result, RBC Dexia director of advisory services Don McDougall said that while modest, after three consecutive negative quarters the result represented a welcome reprieve.
According to the RBC Dexia analysis, oil prices were one of the key drivers for the better result but, just like their Australian counterparts, the Canadian pension funds took a hit in other areas of asset allocation, with global stocks seen as the worst-performing asset class along with fixed income.
AUTHOR
Mike Taylor
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