The market value of Canadian employer-sponsored pension funds dipped in the third quarter, driven by weak equity markets, according to the latest data from Statistics Canada.
Statscan reports that pension plan assets totaled $1.06 trillion at the end of the quarter, down 1.7% from the previous quarter. Rquity investments declined by 9.3% in the quarter, following similar losses on the Toronto Stock Exchange. This decline was offset in part by a 5.6% increase in the value of federal and provincial bond holdings, StatsCan says.
Declines in the value of foreign stocks and bonds reduced the foreign investment portion of trusteed pension funds by 6.1%, StatsCan notes. Whereas the increase in the value of government bond holdings pushed Canadian assets up 0.2%.
Employer and employee pension fund contributions decreased 13.8% to $10.7 billion in the third quarter, the agency says, adding that benefits paid to retirees increased marginally to $11.0 billion.
Pension plan revenues fell 28.4% in the quarter as a result of reduced profits on the sale of securities and declines in investment income and contributions, Statscan reports. With losses on the sale of securities driving expenditures up 17.6%, net income also fell from $12.9 billion to $1.3 billion, it adds.