Assets in Canadian pensions continued to grow in the first quarter of the year, with pensions in the RBC Investor & Treasury Services All Plan universe earning 4.4% in the quarter, the firm says.
Over the past 12 months, the same universe has earned 9.4%.
The increase was driven by strength in the equities markets, wherein the MSCI World Index rose 10% for the quarter, RBC Investor & Treasury Services says.
"On the back of optimism over the U.S. recovery, and central bank commitments to maintain loose monetary policies, investors built on last fall's run, helping pension plans to maintain momentum," says Scott MacDonald, head of Pensions, Insurance and Sovereign Wealth Strategy for RBC Investor & Treasury Services.
"Strength came primarily from the U.S. market which set new highs, but also from Japanese stocks, up in excess of 20% in local currency terms," MacDonald continues. "Pensions did well to match the World benchmark, as most were underexposed to the U.S. market."
Canadian equity markets also contributed to pension performance, RBC says, with the S&P/TSX Composite rising 3.3% in the quarter.