Employer pension plans (trusteed pension funds), third quarter 2015
Ottawa - The market value of employer-sponsored pension funds declined 0.6% in the third quarter, following a 1.0% decline the previous quarter.
Pension fund assets totalled $1.6 trillion. Investments in stocks declined 3.6% to $451.9 billion. The value of bond holdings edged up 0.4% to $554.3 billion and investments in real estate grew 2.4%.
Foreign investments totalled $541.4 billion, accounting for 34.4% of total pension fund assets. The value of foreign bond holdings grew 13.5% and foreign short-term investments increased 20.1% in the third quarter.
Pension fund revenue fell 28.4% to $31.8 billion in the third quarter, the result of a 22.2% decline in investment income and a 50.6% drop in profits from the sale of securities.
Expenditures increased 38.6% in the third quarter, mainly because of higher losses from the sale of securities. Higher expenditures combined with lower revenue generated net income of $1.4 billion, a 93.7% decline from $22.5 billion the previous quarter.
Over 6.2 million Canadian workers are members of employer-sponsored pension plans. Of this group, 5.2 million (83.3%) workers belong to pension plans with assets managed by trusteed funds. The remaining members have assets managed by insurance company contracts.