The market value of Canadian employer-sponsored pension funds totalled $1.06 trillion at the end of the third quarter, down 1.7% from the second quarter.
Pension fund investments in stocks declined 9.3% in the third quarter, following similar losses on the Toronto Stock Exchange for the same period. This decline was offset in part by a 5.6% increase in the value of federal and provincial bonds holdings.
Declines in the value of foreign stocks and bonds reduced the foreign investment portion of trusteed pension funds by 6.1%. Canadian assets edged up 0.2% with the increase in the value of government bond holdings.
Revenues in the third quarter fell 28.4% as a result of reduced profits on the sale of securities and declines in investment income and contributions. With losses on the sale of securities driving expenditures up 17.6%, net income fell from $12.9 billion to $1.3 billion.
Employer and employee pension fund contributions decreased 13.8% to $10.7 billion in the third quarter. Benefits paid to retirees increased marginally to $11.0 billion.
In total, about 6.0 million Canadian workers are members of employer pension plans. Of this group, 5.0 million workers are members of trusteed plans and 1.0 million are managed principally by insurance company contracts. Data in this release refer only to trusteed plans and their pension funds.
© Statistics Canada
- Tuesday, March 13, 2012