Canadian Plan Sponsors Post Another Quarter of Positive Median Returns, According to the BNY Canadian Asset Strategy View Universe

Despite market fluctuations, Canadian plan sponsors ended 2024 with a fifth consecutive quarter of positive results and a notable double-digit annual return.

TORONTO, Feb. 3, 2025 /CNW/ - The median return of the BNY Canadian Asset Strategy View universe, a BNY Global Risk Solutions fund-level tracking service, was 1.96% for the fourth quarter of 2024. The one-year median return as of December 31, 2024, was 12.28%, while the median 10-year annualized return was 6.92%.

The BNY Canadian Asset Strategy View universe results are based on $318 billion worth of investment assets in Canadian investment plans, with the average plan size of $4.4 billion. The universe is designed to provide peer comparisons by plan type and size, and it comprises 72 Canadian corporate, public and university pension plans. Additional insight into the plan results is provided by BNY's Asset Strategy View sub asset class universes.

"Through the last quarter of the year, Canadian pension plans adeptly navigated the ongoing political tensions and macroeconomic uncertainties, closing the year to realize yet another positive quarter. Despite the significant economic challenges faced throughout the year, plan sponsors achieved a commendable annual return." said David Cohen, Director of Global Risk Solutions, BNY. "Most Equity markets posted positive returns in Q4 despite significant volatility towards the end of the quarter while fixed income detracted slightly due to an increase in yields. Private asset classes continue to provide strong support extending their positive performance for the year".

Among traditional asset classes, US Equity posted the highest performance, with a quarterly median return of 8.08%. International Equity returns were the lowest, posting a negative quarterly return of -0.63%.

With respect to non-traditional asset classes, Hedge Funds delivered the strongest performance, with a quarterly median return of 7.79%. Private Equity ended the quarter with a median return of 7.26% while Real Estate delivered a 2.44% quarterly return.

Q4 2024 Highlights of the BNY Canadian Asset Strategy View Universe

• The BNY Asset Strategy View universe of Canadian pension plans over $1 billion outperformed the median return of the Total Canadian Asset Strategy View Universe in Q4 2024.
• Foundations & Endowments posted a median performance of 2.99% for the fourth quarter, exceeding both Public and Corporate Pension Plan universes.
• Most major equity segments posted positive returns in Q4.
• Canadian Equity posted a positive median return of 2.97% in the fourth quarter, behind the S&P/TSX Composite Index return of 3.76%.
• U.S. Equity posted a quarterly median return of 8.08%, lagging the S&P 500 Index return of 9.02%.
• Global Equity reported a median return of 4.08% in Q4, underperforming the MSCI World Index return of 6.39%.
• International Equity posted a negative quarterly median return of -0.63%, exceeding the MSCI EAFE Index return of -2.13%
• Emerging Markets Equity posted a flat median performance for the quarter of 0.09%, outperforming the MSCI Emerging Markets Index return of -1.88%.
• The Canadian Fixed Income median return was -0.16% in the fourth quarter of 2024. Fixed Income underperformed relative to the FTSE Canada Universe Bond Index for the quarter, which returned -0.04%.
• Private Equity reported a positive quarterly median return of 7.26% for the fourth quarter, Real Estate reported a quarterly median return of 2.44%. Hedge Funds reported a return of 7.79%.

BNY Canadian Asset Strategy View Universe Median Plan Returns^*

Universe Medians	Q4 2024	One-Year	Three-Years	Five-Years	Ten-Years
Canadian Asset Strategy View Total Fund	1.96	12.28	4.43	6.76	6.92
Canadian Equity	2.97	19.05	9.00	11.53	8.85
U.S. Equity	8.08	26.95	12.20	14.17	13.65
International Equity	-0.63	15.84	6.57	7.00	8.09
Global Equity	4.08	24.64	8.94	11.86	11.92
Canadian Fixed Income	-0.16	4.19	-0.25	1.25	2.29
Canadian Foundations & Endowments	2.99	15.58	5.64	8.30	7.77
Canadian Public Pension Plans	2.59	13.23	5.79	7.62	7.35
Canadian Corporate Pension Plans	1.08	9.37	3.69	5.41	6.50

^*All returns are posted gross of fee results, calculated in Canadian dollars.

About CIBC Mellon

CIBC Mellon is a Canadian company exclusively focused on the investment servicing needs of Canadian institutional investors and international institutional investors into Canada. Founded in 1996, CIBC Mellon is 50-50 jointly owned by The Bank of New York Mellon (BNY) and Canadian Imperial Bank of Commerce (CIBC). CIBC Mellon's investment servicing solutions for institutions and corporations are provided in close collaboration with our parent companies, and include custody, multicurrency accounting, fund administration, recordkeeping, pension services, exchange-traded fund services, securities lending services, foreign exchange processing and settlement, and treasury services. As at September 30, 2024, CIBC Mellon had more than C$2.9 trillion of assets under administration on behalf of banks, pension funds, investment funds, corporations, governments, insurance companies, foreign insurance trusts, foundations and global financial institutions whose clients invest in Canada. CIBC Mellon is part of the BNY Mellon network, which as at September 30, 2024, had US 52.1 trillion in assets under custody and/or administration. CIBC Mellon is a licensed user of the CIBC trade-mark and certain BNY trade-marks, is the corporate brand of CIBC Mellon Global Securities Services Company and CIBC Mellon Trust Company, and may be used as a generic term to refer to either or both companies.

Information containing any historical information, data or analysis should not be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. Past performance does not guarantee future results. The Information should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. None of the Information constitutes an offer to sell (or a solicitation of an offer to buy), any security, financial product or other investment vehicle or any trading strategy. Some products or services are available only through BNY.

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Media Contact:

Alexandra DeCata, Corporate Communications, CIBC Mellon, 416-643-6126, [email protected]

SOURCE CIBC Mellon