RBC Investor Services (RBCIS) has reported that its Canadian Defined Benefit (DB) pension plans generated a collective 9.1 percent return for 2023, after an 8.2 percent median return in the fourth quarter 2023.
“This quarter represents the third-best performance in over two decades, with notable quarters in second quarter 2020 and second quarter 2009,” said Marijana Jovanovic, managing director, head of product development, RBCIS. “Positive returns in both fixed income and equity markets during fourth quarter were driven by investor optimism over potential near-term interest rate cuts amid decreasing inflationary pressures.”
The DB pension plans’ real estate investments notably yielded a 14.3 percent return in fourth quarter 2023.
