The value of retirement savings of 4.9 million Canadian workers with employer-sponsored pension funds amounted to $936.5 billion at the end of the second quarter, down 0.7% from the first quarter. This was the first decline in the value of pension funds assets since the first quarter of 2009.
At the end of June, the market value of stocks amounted to $300.3 billion, a 5.5% decline from the two-year high of $317.8 billion reached in the first quarter.
The market value of pension fund investments in bonds rose 5.4% to a high of $352.2 billion in the second quarter. Foreign bonds increased in value 15.4%, while investments in domestic bonds grew 4.6%.
The share of pension fund assets held in bonds was 37.6% (+2.2%), while the proportion in stocks was 32.1% (-1.6%).
Pension fund revenues remained stable at $24.3 billion in the second quarter. Increases in pension contributions and investment income offset the reduced profits from the sale of securities.
Expenditures increased to $17.2 billion, principally as a result of an increase in losses on the sale of securities, an indication of ongoing market volatility. Net income posted a second consecutive decline, falling from $12.2 billion in the first quarter to $7.1 billion in the second quarter.
Just over 6.0 million Canadian workers are members of employer pension plans. Of this group, 4.9 million workers are members of trusteed plans. The remaining 1.1 million members with employer pension plans are in plans managed principally by insurance company contracts. Data in this release refer only to trusteed plans and their pension funds.
© Statistics Canada
- Thursday, December 9, 2010