TELUS Health has released the results of its Performance Universe of Pension Managers’ Pooled Funds for the third quarter of 2024.
According to the report, diversified pooled fund managers saw a median return of 6.2 per cent in the third quarter, reaching 13.3 per cent since the beginning of 2024, before management fees. The third quarter showcased impressive returns across major equity markets: Canadian equities (S&P/TSX Composite Index) gained 10.5 per cent, the MSCI World Index increased by 5.0 per cent, the S&P 500 saw a 4.4 per cent boost, and the Emerging Markets Index rose 7.3 per cent, all in Canadian dollars. Fixed income also delivered a strong quarter, with Canadian bonds up 4.7 per cent.
Jean Bergeron, a Partner in TELUS Health Investment Consulting, noted that the financial position of a typical pension plan at the end of Q3 remained comparable to the previous quarter, with an estimated 7.6 per cent rise in the average pension fund’s solvency ratio year-to-date.
However, diversified pooled fund managers trailed the benchmark portfolio (55 per cent equity, 45 per cent fixed income), with their 6.2 per cent median return coming in 0.4 per cent below the benchmark. This modest gap highlights the ongoing challenge of consistently outperforming benchmark allocations in a dynamic market.
Click here to read the September 2024 report.