Growth in the value of employer-sponsored pension funds stalled in the third quarter of 2007, Statistics Canada said today.

The market value of assets in these pension funds amounted to $957.2 billion for the three-month period ending September 2007, essentially unchanged from $956.9 billion in the second quarter.

The flat growth reflects both the performance of Canadian stocks on the Toronto Stock Exchange, and the rise in value of the Canadian dollar, hindering gains in foreign stock holding, the government agency said.

The value of Canadian stocks declined 1.6% while the value of foreign equity investments dropped 3.0% after currency conversion. The value of bonds rose 2.1%, while the value of real estate assets increased 2.8%.

At the end of September, pension fund assets held in stocks and equity funds accounted for 39.1% of total assets; bonds and bond funds, 32.0%; real estate, 6.6%; short-term investments, 3.6%; mortgages, 1.4%; and other assets, 16.9%.

Pension revenues declined to $28.3 billion in the third quarter, after peaking in the previous quarter at $34.7 billion. This decline was due to reduced employer contributions, investment income and profits from buying and selling stocks.

Contributions were down following several large special payments made for unfunded liabilities by employers during the previous quarter, StatsCan said.

Expenditures rose 5.9% to $12.9 billion, principally because of losses on the sale of securities and restructuring costs. Pension benefits paid to retirees rose a marginal 0.3% to $8.4 billion. Net income declined to $15.4 billion from the record high $22.6 billion in the second quarter.

Of the 5.7 million Canadian workers belonging to employer pension plans, 4.6 million are members of trusteed plans. The remaining 1 million workers with employer pension plans are covered by the consolidated revenue funds of the federal and provincial governments, or by insurance company contracts or Government of Canada annuities.