Pension Indices by TELUS Health: April 2024

Our latest Pension Indices monthly report states that during the month of April, the funded position of a typical pension plan increased both on a solvency basis and on an accounting basis.

The investment return was minus 2.3 per cent for the month for a representative pension plan portfolio, driven mainly by negative returns in both the equity and bond markets.

The global developed and emerging equity markets index, the MSCI ACWI, returned minus 1.8 per cent in Canadian dollar terms. The Canadian equity index, the S&P/TSX Composite, finished the month with a return of minus 1.8 per cent as well.

“We saw large increases in long-term interest rates in April, as market consensus moved towards delays in interest rate cuts. This led to reductions in plan liabilities over the month.” says Andrea Knoll, Partner in TELUS Health’s Consulting team.

Click here to read the full report and learn more about the challenges and opportunities that are yet to come for pension plan sponsors and administrators.