Equity and private assets lift quarterly performance
Canadian foundations, endowments, and larger pension plans outperformed their peers in the third quarter of 2025, helping lift the median return of BNY’s $349 billion Canadian Asset Strategy View universe to 3.98%, according to BNY Global Risk Solutions.
The one-year median return as of September 30 stood at 9.40%, while the 10-year annualized median return was 7.14%.
The BNY Canadian Asset Strategy View universe tracks the performance of 68 Canadian institutional investors, including corporate, public, and university pension plans, as well as foundations and endowments. The average plan size was $5.13 billion. The data provide peer comparisons across plan types and sizes, with additional detail offered through BNY’s Asset Strategy View sub-asset class universes.
Plans with assets over $1 billion posted higher median returns than the overall universe for the quarter. Foundations and endowments achieved a 5.27% median return, outpacing both public and corporate pension plans.
All major equity segments recorded gains during the quarter. Canadian equity posted a median return of 8.99%, compared with the S&P/TSX Composite Index return of 12.50%. U.S. equity returned 8.39%, below the S&P 500 Index at 10.26%. Global equity reported 7.57%, compared with the MSCI World Index at 9.48%. International equity gained 8.61%, exceeding the MSCI EAFE Index return of 6.90%. Emerging markets equity reported a 13.14% median return, nearly matching the MSCI Emerging Markets Index at 13.13%.
In traditional asset categories, Canadian equity provided the highest quarterly performance at 8.99%, while Canadian fixed income delivered 1.71%. The fixed income return was slightly higher than the FTSE Canada Universe Bond Index, which returned 1.51%.
Non-traditional asset classes also produced positive results. Private equity generated a 5.41% median return, hedge funds 5.08%, and real estate 1.57% for the quarter.
David Cohen, director of Global Risk Solutions at BNY, said global financial markets in the third quarter experienced gains driven by technology and AI stocks, positive corporate earnings, and supportive monetary policies.
"Inflation remained elevated in many regions with tariffs and political tensions continuing to be a major concern. We are also witnessing slowing global economic growth. Despite these conditions, Canadian pension plans delivered strong performance in the quarter with positive contributions from all major public and private asset classes," said Cohen.
Overall, Canadian institutional investors tracked by BNY recorded steady quarterly results across both public and private holdings, supported by equity gains and consistent alternative asset performance.
