BNY reports Canadian pension plans withstand Q1 volatility with positive returns

Canadian pension plans posted a median return of 1.23 percent in the first quarter of 2025, according to BNY Global Risk Solutions, as positive international equity and private asset performance helped offset losses in US equity markets. 

As per the Q1 2025 results from the BNY Canadian Asset Strategy View universe—a fund-level tracking service covering $328bn in Canadian investment assets—most major equity segments delivered positive returns.  

International Equity led the way, posting a 3.67 percent median gain. 

Emerging Markets Equity followed at 2.39 percent. Canadian Equity returned 0.48 percent, falling short of the S&P/TSX Composite Index’s 1.51 percent gain.  

Global Equity reported a flat return of 0.02 percent, while US Equity posted the lowest result at -4.21 percent, aligning with the S&P 500 Index’s -4.20 percent. 

David Cohen, director of Global Risk Solutions at BNY, said Canadian pension plans delivered positive returns in Q1.  

“Despite challenging market conditions and shifting investor sentiment in Q1 amplified by the US presidential transition and the tariff concerns,” he said, “Canadian pension plans delivered positive returns.” He added that this showed continued resilience. 

He added that outside of US equities, most markets generated positive results.  

He also said that declining fixed income yields provided safety amid rising trade tensions, and that stable private asset performance supported plan sponsors navigating public market volatility. 

According to BNY, Canadian Fixed Income recorded a median return of 1.91 percent in Q1, slightly below the FTSE Canada Universe Bond Index return of 2.02 percent.  

Private Equity led non-traditional asset classes with a median return of 1.57 percent. Hedge Funds followed with 1.17 percent, while Real Estate returned 0.56 percent. 

Canadian Corporate Pension Plans outperformed other plan types with a median return of 1.24 percent, as reported by BNY.  

Public Pension Plans delivered 1.06 percent, and Foundations & Endowments posted 0.81 percent.  

The BNY report noted that Canadian pension plans with over $1bn in assets underperformed the total universe median. 

As of March 31, the one-year median return across the BNY Canadian Asset Strategy View universe was 9.21 percent. The 10-year annualized return stood at 6.46 percent.  

The universe includes 69 Canadian corporate, public, and university pension plans, with an average plan size of $4.8bn, and allows for peer comparisons by plan type and size.  

Additional sub-asset class insights are available through BNY’s Asset Strategy View tool. 

BNY Canadian Asset Strategy View Universe – Median Plan Returns 

(All returns are gross of fees, in Canadian dollars) 

 Source: CIBC Mellon