Performance Universe for Pension Managers Pooled Funds - June 2024

TELUS Health has released the results of its Performance Universe of Pension Managers’ Pooled Funds for the second quarter of 2024.

According to the report, in the second quarter of 2024, diversified pooled fund managers posted a median return of 1.3 per cent before management fees and 6.6 per cent since the beginning of the year.

“Global equity markets continued to progress during the second quarter of 2024. Meanwhile, Canadian equities posted slightly negative returns. The S&P/TSX Composite Index of Canadian equities posted negative 0.5 per cent. For the same period, the MSCI World Index posted a return of 3.8 per cent (in Canadian dollars). The S&P 500 equity index increased by 5.3 per cent (in Canadian dollars) and the Emerging Markets Index rose by 6.2 per cent (in Canadian dollars) during the quarter. As for fixed income securities, the Canadian bond market increased by 0.9 per cent in the second quarter," said Jean Bergeron, a Partner in the TELUS Health Investment Consulting team.

“The funded position of a typical pension plan increased on a solvency basis over the second quarter, driven mainly by the strong performance of equity markets as a whole. In fact, we estimate that the solvency ratio of a typical pension plan has increased by 1.5 per cent in the second quarter of 2024 and by 7.6 per cent since the beginning of the year” added Jean Bergeron.

During the second quarter of 2024, diversified pooled fund managers performed, on average, higher than the benchmark portfolio. Indeed, the median return of managers (1.3 per cent) was 0.1 per cent higher than the return of the benchmark portfolio used by many pension funds (with an allocation of 55 per cent equity and 45 per cent fixed income).

Click here to read the June 2024 report.