Canadian Plan Sponsors Post Positive Median Returns in Q1 2024, According to the BNY Mellon Canadian Asset Strategy View Universe

Canadian plan sponsors kick-off 2024 with another positive quarter

TORONTO, May 3, 2024 /CNW/ - The median return of the BNY Mellon Canadian Asset Strategy View universe, a BNY Mellon Global Risk Solutions fund-level tracking service, was 3.68% for the first quarter of 2024. The one-year median return as of March 31, 2024, was 9.86%, while the median 10-year annualized return was 6.87%.

The BNY Mellon Canadian Asset Strategy View universe results are based on $306.2 billion worth of investment assets in Canadian investment plans, with the average plan size of $4.0 billion. The universe is designed to provide peer comparisons by plan type and size, and it comprises 76 Canadian corporate, public and university pension plans. Additional insight into the plan results is provided by the BNY Mellon's Asset Strategy View sub asset class universes.

"Canadian pension plans continued their robust performance with a second consecutive positive quarter fueled by widespread enthusiasm around upcoming interest rate cuts and the AI related Technology stock boom. This is despite the increased political tensions globally," said David Cohen, Director of Global Risk Solutions, BNY Mellon. "Equities, across all regions, delivered strong returns in Q1 while Canadian fixed income detracted following an increase in yields. Private asset classes continue to provide positive contributions to the Canadian pension universe with solid returns in the quarter."

Among traditional asset classes, US Equity posted the highest performance, with a quarterly median return of 11.75%. Canadian Fixed Income returns were the lowest, posting a negative quarterly return of -1.49%.

With respect to non-traditional asset classes, Hedge Funds delivered the strongest performance, with a quarterly median return of 6.20%. Private Equity ended the quarter with a median return of 4.85% while Real Estate delivered a flat performance for the quarter returning 0.54%.

Q1 2024 Highlights of the BNY Mellon Canadian Asset Strategy View Universe

• The BNY Mellon Asset Strategy View universe of Canadian pension plans over $1 billion outperformed the median return of the Total Canadian Asset Strategy View Universe in Q1 2024.
• Canadian Foundations and Endowments posted a median performance of 5.95% for the first quarter exceeding both Public Pension Plan and Corporate Pension Plan universes.
• All major equity segments posted positive returns in Q1.
• Canadian Equity posted a median return of 6.88% in the first quarter, ahead of the S&P/TSX Composite Index return of 6.62%.
• U.S. Equity posted a quarterly median return of 11.75%, lagging the S&P 500 Index return of 13.46%.
• Global Equity reported a median return of 11.23% in Q1, underperforming the MSCI World Index return of 11.87%.
• International Equity posted a quarterly median return of 6.56%, lagging the MSCI EAFE Index return of 8.71%
• Emerging Markets Equity posted a positive median performance for the quarter of 5.11%, slightly behind the MSCI Emerging Markets Index return of 5.13%.
• The Canadian Fixed Income median return was -1.49% in the first quarter of 2024. Fixed Income underperformed relative to the FTSE Canada Universe Bond Index for the quarter, which returned -1.22%.
• Private Equity reported a positive quarterly median return of 4.85% for the first quarter, Real Estate reported a quarterly median return of 0.54%. Hedge Funds reported a return of 6.20%.

BNY Mellon Canadian Asset Strategy View Universe Median Plan Returns*

Universe Medians	Q1 2024	One-Year	Three-Years	Five-Years	Ten-Years
Canadian Asset Strategy View Total Fund	3.68	9.86	4.95	6.13	6.87
Canadian Equity	6.88	13.93	10.04	10.77	8.24
U.S. Equity	11.75	25.96	12.72	13.37	13.36
International Equity	6.56	13.23	5.00	7.25	7.02
Global Equity	11.23	22.47	9.54	11.41	11.33
Canadian Fixed Income	-1.49	2.70	-1.36	0.69	2.36
Canadian Foundations & Endowments	5.95	12.16	-	-	-
Canadian Public Pension Plans	4.35	9.97	5.93	7.10	6.97
Canadian Corporate Pension Plans	2.78	7.81	3.33	4.88	6.33

*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 Mellon) 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 March 29, 2024, CIBC Mellon had more than C$2.8 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 March 29, 2024, had US$48.8 trillion in assets under custody and/or administration. CIBC Mellon is a licensed user of the CIBC trade-mark and certain BNY Mellon 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 Mellon.

For more information, including CIBC Mellon's latest knowledge leadership on issues relevant to institutional investors active in Canada, visit www.cibcmellon.com.

Media Contact:

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

SOURCE CIBC Mellon