Canadian pension funds increase in value by 2.5 percent in fourth quarter of 2009
Ottawa (10 June 2010) –The market value of workplace pension funds in Canada amounted to $920.4 billion at the end of the fourth quarter, up $22.3 billion (or a 2.5 percent increase) from the previous quarter, according to Statistics Canada lastest quarterly suvey of trusteed pension plans.
This was the third consecutive quarter of growth in pension fund assets, as they rebounded from significant losses in 2008 and the first quarter of 2009.
The value of these assets in the fourth quarter was 10.9 percent higher compared with the same quarter of 2008. However, it remained 5.2 percent below the high of $970.8 billion reached in the second quarter of 2008.
Stocks and equity funds accounted for 33.9 percent of total pension fund assets at the end of the fourth quarter, while fund assets held in bonds accounted for 35.2 percent.
Pension fund revenues increased 8.8 percent to $30.7 billion in the fourth quarter, largely the result of increased investment income and $8.1 billion in profits from the sale of securities.
Although expenditures also increased, rising 14.3 percent to $14.7 billion, net income was up for a third consecutive quarter to $16.0 billion.
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 managed principally by insurance company contracts.
The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE