Canadian Pensions Return 5.4 Percent in 2015

Canada’s public pension funds weathered a volatile year as their collective portfolios returned 5.4 percent in 2015, according to a report.

The performance is impressive considering the funds’ U.S. peers returned just 0.36 percent in 2015.

More from Reuters:

Canadian pension funds achieved a return of 5.4 percent on their investments in 2015 as their strategy of diversifying internationally helped mitigate volatile market conditions, research by RBC Investor & Treasury Services showed.

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The funds have pursued a strategy of directly investing in assets globally, including investments in infrastructure and real estate. Pension experts say that has provided them with a buffer against market volatility and challenging economic conditions.

“Canadian pension plans clearly benefited from global diversification portfolio strategies,” David Heisz, chief executive officer of RBC Investor Services Trust, said in a statement on Thursday.

Heisz said the positive 2015 performance could largely be attributed to a lift from global equities, offsetting downward pressure from weaker domestic sectors, particularly commodities, resources and energy over the course of the year.

Canadian funds’ performance was buoyed by a strong 4^th quarter, where the funds achieved a 3.1 percent return.

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