Survey: Canadian Pensions Recover in 2009

(January 22, 2010) – A 16.2% rebound in Canadian pension plans in 2009 helped regain some of the previous year’s losses, according to a recent survey by RBC Dexia Investor Services.

 “The speed of the rally, particularly in the second and third quarters caught pensions by surprise, as many remained under-exposed to equities,” said Don McDougall, director of advisory services for RBC Dexia. “Then again, after last year’s brutal 15.9% drop, it is reassuring to see pension plans claw back to precrisis state,” he said, according to the news release.

Canadian equities, the top performing asset class, posted its best calendar year since 1979, soaring 35.1%, while foreign stock markets also staged a solid comeback. In domestic bonds, Canadian pensions increased 7.9% in 2009, according to the release.

“All sectors advanced, with most gaining double digits – but the top heavy weightings in financials, energy and the materials sectors accounted for more than 85% of the market’s rise this year,” said McDougall.
Established in January 2006, RBC Dexia Investor Services, with 5,400 professionals in 16 markets, offers a range of investor services to institutions globally, including Canadian pension funds. The company ranks among the world’s top 10 global custodians with $2.3 trillion in client assets under administration.