Hurricane turmoil kept the energy-heavy Canadian stock market surging, boosting one-year pension investment returns to 15.1%, according to a survey just released by the investment analytics arm of RBC Global Services.
Within the $340 billion universe surveyed by RBC Global, balanced funds earned 3.8% in the three months ending September 2005. Canadian stocks provided most of the gains, as the S&P TSX composite index jumped 11.6% in the quarter and 29.3% for the year.
“Again this quarter, the energy sector alone accounted for half the returns. Canadian energy shares are up 25.7% and a remarkable 78.9% over the year,” explained Don McDougall, director, BENCHMARK, RBC Global Services. “However, as prices soared, equity managers generally reduced their exposure – and consequently lagged the S&P/TSX index by 0.6% for the quarter.”
“The energy boom has also driven up the loonie, erasing global portfolio gains for Canadian-based investors,” noted McDougall. “Our strengthening dollar slashed foreign equity returns to just 0.4% for the quarter, once currency was taken into account”.
Domestic bond portfolios were flat, gaining a meagre 0.2% in the latest quarter and 9.0% over the year, closely in line with the Scotia Capital Universe Bond Index.
Canadian pensions surge ahead in third quarter
Managers reduced energy exposure as sector soared
- By: IE Staff
- October 31, 2005 October 31, 2019
- 09:50