Morneau Shepell (TSX: MSI) has released the results of its Performance Universe of Pension Managers’ Pooled Funds for the second quarter of 2018.

According to the report, in the second quarter of 2018, diversified pooled fund managers posted a median return of 2.9 per cent before management fees.

“Most stock markets delivered excellent results in the second quarter, generating positive pension fund returns. Canadian and U.S. equities did particularly well, with returns of 6.8 per cent for the S&P/TSX and 5.6 per cent in Canadian dollars for the S&P 500. Emerging equities had a tough quarter, returning -6.0 per cent in Canadian dollars. Bond returns were modest in the second quarter, at about 0.5 per cent for the market as a whole,” said Jean Bergeron, vice-president responsible for the Morneau Shepell Asset & Risk Management consulting team.

“With returns well above the increase in actuarial liability, pension fund financial positions on a solvency basis improved for the second quarter of 2018. The solvency ratio for an average pension plan has improved by about 1.3 to 1.9 per cent since the beginning of the year,” added Bergeron.

On average, during the second quarter of 2018, diversified pooled fund managers obtained a median return of 2.9 per cent, which was equal to the benchmark portfolio (with an allocation of 55 per cent in equity and 45 per cent in fixed income) used by many pension funds.

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