Pension Plans See First Positive Returns Since Q3 2025 in Q2 2026

Canadian defined benefit pension plans saw their first positive returns since Q3 2025 in Q2 2026, according to RBC Investor Services. The median return for these plans was 6.0% for the quarter and 6.4% year-to-date. Global equities led all asset classes with a return of 15.1% for the quarter and 14.0% YTD, outpacing the MSCI World Index (CAD) at 15.7% (Q2) and 13.5% YTD.

Emerging markets were particularly strong, with the MSCI Emerging Markets Index (CAD) returning 26.1% (Q2) and 28.2% YTD, driven by Korea's and Taiwan's leading semiconductor producers. Developed markets saw U.S. equities lead the way, with the S&P 500 Index (CAD) returning 17.1% for the quarter and 14.1% YTD.

The Information Technology sector rose 34.0%, with Semiconductors and Semiconductor Equipment sub-sector gaining 52.2%. A weakening Canadian dollar added to returns for plans with unhedged U.S. exposure, as one U.S. dollar bought 1.4188 Canadian dollars at quarter end.