TELUS Health has released the results of its Performance Universe of Pension Managers’ Pooled Funds for the fourth quarter of 2024.
According to the report, in the fourth quarter of 2024, diversified pooled fund managers posted a median return of 2.5 per cent before management fees and 15.1 per cent since the beginning of the year.
“The stock markets continued to progress during the fourth quarter of 2024. The S&P/TSX Composite Index posted a return of 3.8 per cent for the quarter. For the same period, the MSCI World Index posted a return of 6.3 per cent (in Canadian dollars). The S&P 500 equity index increased by 9.2 per cent (in Canadian dollars) and the Emerging Markets Index decreased by 2.1 per cent (in Canadian dollars).," said Jean Bergeron, a Partner in the TELUS Health Investment Consulting team.
“The funded status of a typical pension plan improved on a solvency basis throughout the fourth quarter of 2024. We estimate that the solvency ratio of an average pension fund rose by about 3.4 per cent in the fourth quarter of 2024 and increased by about 11.3 per cent since the beginning of the year due to the good performance of the stock markets.” added Jean Bergeron.
During the fourth quarter of 2024, diversified pooled fund managers performed, on average, higher than the benchmark portfolio. Indeed, the median return of managers (2.5 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 December 2024 report.