TORONTO--(BUSINESS WIRE)--LifeWorks has released the results of its Performance Universe of Pension Managers’ Pooled Funds for the third quarter of 2022.
According to the report, in the third quarter of 2022, diversified pooled fund managers posted a median return of negative 0.1 per cent before management fees.
“The markets continued to decline in the third quarter of 2022. The Canadian S&P/TSX Composite Index was down 1.4 per cent for the quarter, while the MSCI World Index delivered a negative 0.1 per cent return (in Canadian dollars) and the U.S. S&P 500 Index increased by 0.2 per cent (in Canadian dollars). The emerging markets index also declined 5.6 per cent (in Canadian dollars). For fixed income, the Canadian bond market rose by 0.5 per cent,” said Jean Bergeron, a Partner in the LifeWorks Investment and Risk Consulting team.
“Due to the rise in interest rates used to calculate the solvency liability, the financial position of pension funds improved somewhat during the third quarter. We estimate that the solvency ratio of a typical pension plan has increased by around 0.6 per cent over the third quarter of 2022. Since the beginning of the year the solvency ratio of a typical pension plan has increased by about 0.1 per cent.” added Bergeron.
During the third quarter of 2022, diversified pooled fund managers obtained, on average, returns higher than the benchmark portfolio. The median return was negative 0.1 per cent, which was 0.1 per cent higher than the benchmark portfolio used by many pension funds (with an allocation of 55 per cent to equity and 45 per cent to fixed income).
Canadian bonds
In the third quarter of 2022, managers obtained a median return of 0.7 per cent on bonds (Universe mandate), which was 0.2 per cent higher than the benchmark index.
During the third quarter of 2022, short-term, mid-term and long-term bond indices posted returns of negative 0.3 per cent, 0.8 per cent and 1.5 per cent, respectively. The high-yield bond index posted a return 0.7 per cent, while the real return bond index provided a 0.9 per cent return.
Canadian equities
In the third quarter of 2022, the median return for Canadian equity managers was negative 1.0 per cent, which was 0.4 per cent higher than the negative 1.4 per cent posted by the S&P/TSX Index.
During the third quarter of 2022, the S&P/TSX Small Cap Index dropped 2.5 per cent, whereas the S&P/TSX Completion Index, which represents mid-cap stocks decreased of 0.1 per cent, and the large-cap S&P/TSX 60 Index posted a return negative 1.7 per cent.
Foreign equities
Foreign equity managers’ median returns and appropriate benchmark index returns for the third quarter of 2022 are as follows:
- 1.6 per cent for U.S. equities versus 1.2 per cent for the S&P 500 Index (C$);
- Negative 3.6 per cent for international equities versus negative 3.5 per cent for the MSCI EAFE Index (C$);
- Negative 0.5 per cent for global equities versus negative 0.1 per cent for the MSCI World Index (C$); and
- Negative 5.2 per cent for emerging market equities versus negative 5.6 per cent for the MSCI Emerging Markets Index (C$).
Alternative investments
The Dow Jones Credit Suisse Hedge Fund Index (formerly CSFB/Tremont Hedge Fund Index) posted a return of 6.8 per cent (C$) for the third quarter of 2022
The Performance Universe covers about 295 funds managed by nearly 45 investment management firms.
The results of our study are based on the returns provided by leading portfolio managers, ranging from independent investment management firms to insurance companies, trust companies and financial institutions. The returns are calculated before deduction of management fees.
The investment and risk consulting team at LifeWorks produces the quarterly Performance Universe results. This team provides independent consulting services on all aspects of asset and liability management of pension funds, endowment funds, and other institutional investment funds.
LifeWorks is a wholly owned subsidiary of TELUS now operating as part of TELUS Health as a result of its recent acquisition.
About TELUS Health
TELUS Health is a global healthcare company serving people in more than 160 countries delivering both digital innovation and clinical services to improve total physical, mental and financial health and wellness across the full spectrum of primary and preventative care. By leveraging the power of technology to deliver connected solutions and services both in-person and virtually, TELUS Health is improving access to care and revolutionizing the flow of information while facilitating collaboration, efficiency, and productivity for physicians, pharmacists, health authorities, allied healthcare professionals, insurers, employers and people globally, progressing its vision of transforming healthcare and empowering people to live healthier lives.
Our clinical team is composed of renowned and passionate health professionals around the world delivering best-in-class people-centric care to hundreds of thousands of employers, professionals and their families.
For more information, please visit: www.telushealth.com.
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ID-CORP, ID-CAD, ID-RS
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Summary |
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Rates of return for periods ending September 30, 2022
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Diversified |
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3-month |
6-month |
9-month |
1-year |
2-year |
3-year |
4-year |
5-year |
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5th percentile |
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0.81 |
-8.33 |
-9.77 |
-4.97 |
7.74 |
6.27 |
6.85 |
6.83 |
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1st quartile |
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0.47 |
-9.16 |
-11.75 |
-7.07 |
4.69 |
4.89 |
4.86 |
5.28 |
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Median |
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-0.14 |
-9.29 |
-13.52 |
-8.97 |
2.09 |
3.27 |
3.92 |
4.45 |
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3rd quartile |
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-0.87 |
-10.26 |
-14.98 |
-10.55 |
0.46 |
2.51 |
3.41 |
4.00 |
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95th percentile |
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-1.48 |
-12.41 |
-17.39 |
-12.75 |
-2.01 |
0.92 |
1.62 |
2.82 |
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Benchmark* |
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-0.15 |
-11.05 |
-15.26 |
-11.10 |
-0.96 |
1.70 |
3.46 |
4.05 |
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Benchmark** |
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-0.25 |
-11.36 |
-15.20 |
-10.96 |
-0.20 |
2.18 |
3.73 |
4.34 |
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* 45% fixed income,55% equity |
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** 40% fixed income,60% equity |
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Returns compounded quarterly |
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Money market |
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3-month |
6-month |
9-month |
1-year |
2-year |
3-year |
4-year |
5-year |
||||
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5th percentile |
|
0.69 |
0.97 |
1.10 |
1.24 |
0.93 |
1.10 |
1.55 |
1.55 |
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1st quartile |
|
0.66 |
0.95 |
1.05 |
1.12 |
0.71 |
0.93 |
1.31 |
1.30 |
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Median |
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0.65 |
0.92 |
0.98 |
1.00 |
0.64 |
0.88 |
1.18 |
1.25 |
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3rd quartile |
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0.55 |
0.79 |
0.87 |
0.94 |
0.58 |
0.84 |
1.14 |
1.20 |
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95th percentile |
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0.02 |
-1.34 |
-3.63 |
-4.08 |
-1.64 |
0.52 |
1.03 |
1.13 |
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Canadian bonds |
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3-month |
6-month |
9-month |
1-year |
2-year |
3-year |
4-year |
5-year |
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5th percentile |
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1.66 |
-2.92 |
-6.15 |
-5.97 |
0.59 |
0.94 |
2.14 |
2.50 |
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1st quartile |
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0.92 |
-4.84 |
-11.10 |
-9.98 |
-5.56 |
-1.18 |
1.26 |
1.41 |
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Median |
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0.65 |
-5.21 |
-11.72 |
-10.47 |
-6.47 |
-1.88 |
0.96 |
1.18 |
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3rd quartile |
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0.46 |
-5.64 |
-12.47 |
-11.20 |
-6.99 |
-2.33 |
0.61 |
0.89 |
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95th percentile |
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-0.40 |
-10.27 |
-20.80 |
-17.06 |
-12.32 |
-5.65 |
-0.52 |
0.37 |
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Canadian bonds (Universe mandate) |
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3-month |
6-month |
9-month |
1-year |
2-year |
3-year |
4-year |
5-year |
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5th percentile |
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1.02 |
-4.65 |
-8.57 |
-7.52 |
-3.01 |
-0.20 |
1.52 |
1.81 |
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1st quartile |
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0.77 |
-5.03 |
-11.42 |
-10.03 |
-6.11 |
-1.72 |
0.99 |
1.28 |
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Median |
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0.68 |
-5.15 |
-11.72 |
-10.47 |
-6.58 |
-1.94 |
0.86 |
1.10 |
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3rd quartile |
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0.56 |
-5.40 |
-12.24 |
-10.93 |
-6.95 |
-2.09 |
0.72 |
0.90 |
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95th percentile |
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-0.15 |
-5.73 |
-13.01 |
-11.57 |
-7.52 |
-2.66 |
0.42 |
0.71 |
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Rates of return for periods ending September 30, 2022
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Canadian equity – Broad* |
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3-month |
6-month |
9-month |
1-year |
2-year |
3-year |
4-year |
5-year |
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5th percentile |
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1.48 |
-7.41 |
-3.97 |
2.78 |
17.49 |
9.91 |
9.99 |
8.85 |
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1st quartile |
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-0.08 |
-10.53 |
-7.45 |
-0.71 |
13.03 |
8.69 |
8.21 |
7.65 |
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Median |
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-0.96 |
-11.76 |
-9.37 |
-3.62 |
11.06 |
7.28 |
6.89 |
6.92 |
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3rd quartile |
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-1.93 |
-13.03 |
-11.49 |
-5.47 |
9.37 |
5.37 |
5.71 |
6.07 |
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95th percentile |
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-4.33 |
-14.51 |
-15.61 |
-10.55 |
6.00 |
4.02 |
3.80 |
4.06 |
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S&P/TSX |
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-1.41 |
-14.41 |
-11.14 |
-5.39 |
10.06 |
6.59 |
6.71 |
6.54 |
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S&P/TSX Capped |
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-1.41 |
-14.41 |
-11.14 |
-5.39 |
10.06 |
6.59 |
6.71 |
6.54 |
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* Some funds may include up to 30% in foreign content |
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Canadian equity – Specialized |
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3-month |
6-month |
9-month |
1-year |
2-year |
3-year |
4-year |
5-year |
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5th percentile |
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0.50 |
-14.54 |
-11.04 |
-7.15 |
15.85 |
14.35 |
8.81 |
8.33 |
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1st quartile |
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-2.30 |
-16.74 |
-14.50 |
-10.73 |
12.92 |
8.37 |
6.33 |
6.82 |
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Median |
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-3.65 |
-17.72 |
-22.53 |
-18.98 |
4.55 |
7.93 |
6.02 |
6.14 |
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3rd quartile |
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-4.01 |
-20.25 |
-25.30 |
-23.20 |
2.59 |
6.17 |
4.75 |
4.69 |
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95th percentile |
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-6.18 |
-24.45 |
-27.53 |
-26.10 |
-0.49 |
5.59 |
0.75 |
0.18 |
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BMO Small Cap weighted |
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-2.55 |
-21.80 |
-16.39 |
-13.60 |
12.21 |
8.27 |
4.81 |
4.17 |
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S&P/TSX Small Cap |
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-2.48 |
-22.79 |
-16.30 |
-13.76 |
11.49 |
6.47 |
3.03 |
2.43 |
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U.S. equity |
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3-month |
6-month |
9-month |
1-year |
2-year |
3-year |
4-year |
5-year |
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5th percentile |
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5.60 |
-4.39 |
-5.53 |
-0.35 |
14.79 |
12.81 |
12.58 |
15.36 |
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1st quartile |
|
2.71 |
-7.99 |
-13.92 |
-5.77 |
8.57 |
10.07 |
9.66 |
11.97 |
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Median |
|
1.59 |
-9.88 |
-16.07 |
-7.44 |
7.53 |
8.47 |
8.64 |
10.94 |
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3rd quartile |
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0.65 |
-11.40 |
-18.09 |
-9.14 |
4.34 |
7.18 |
6.90 |
9.49 |
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95th percentile |
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0.11 |
-16.40 |
-26.86 |
-20.41 |
-1.29 |
4.77 |
4.23 |
7.56 |
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S&P 500 (C$) |
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1.18 |
-12.46 |
-17.69 |
-9.06 |
6.26 |
9.41 |
8.71 |
11.31 |
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Rates of return for periods ending September 30, 2022
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International equity (Europe and Asia) |
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3-month |
6-month |
9-month |
1-year |
2-year |
3-year |
4-year |
5-year |
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5th percentile |
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-0.85 |
-9.74 |
-12.49 |
-10.37 |
5.23 |
6.63 |
4.67 |
6.09 |
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1st quartile |
|
-2.11 |
-12.73 |
-18.77 |
-17.35 |
-1.33 |
2.68 |
1.81 |
2.88 |
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Median |
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-3.55 |
-14.49 |
-21.96 |
-19.49 |
-3.01 |
0.54 |
0.87 |
2.13 |
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3rd quartile |
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-4.08 |
-14.92 |
-25.00 |
-22.04 |
-4.86 |
-1.68 |
-0.92 |
0.55 |
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95th percentile |
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-6.88 |
-16.47 |
-25.87 |
-24.14 |
-7.34 |
-3.60 |
-3.24 |
-1.57 |
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MSCI EAFE (C$) |
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-3.45 |
-14.76 |
-20.69 |
-18.80 |
-1.60 |
-0.61 |
-0.20 |
1.05 |
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Global equity (U.S.A., Europe and Asia) |
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3-month |
6-month |
9-month |
1-year |
2-year |
3-year |
4-year |
5-year |
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5th percentile |
|
2.17 |
-8.05 |
-10.79 |
-5.07 |
8.96 |
9.11 |
9.25 |
10.13 |
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1st quartile |
|
0.15 |
-10.48 |
-16.28 |
-10.26 |
4.86 |
7.32 |
6.32 |
8.35 |
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Median |
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-0.46 |
-12.13 |
-17.92 |
-13.62 |
3.13 |
5.07 |
4.41 |
5.87 |
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3rd quartile |
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-1.95 |
-13.19 |
-22.96 |
-17.64 |
1.16 |
2.82 |
2.52 |
4.29 |
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95th percentile |
|
-4.11 |
-15.44 |
-24.77 |
-22.61 |
-2.15 |
0.89 |
1.22 |
2.99 |
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MSCI World (C$) |
|
-0.07 |
-13.50 |
-18.88 |
-12.83 |
3.20 |
5.86 |
5.47 |
7.30 |
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Emerging markets |
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3-month |
6-month |
9-month |
1-year |
2-year |
3-year |
4-year |
5-year |
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5th percentile |
|
-0.02 |
-8.23 |
-6.31 |
-8.04 |
6.27 |
4.26 |
2.98 |
3.44 |
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1st quartile |
|
-4.28 |
-11.93 |
-19.26 |
-17.75 |
-4.75 |
0.02 |
0.85 |
1.22 |
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Median |
|
-5.15 |
-13.19 |
-22.96 |
-23.42 |
-7.49 |
-0.91 |
-0.03 |
0.41 |
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3rd quartile |
|
-5.61 |
-14.26 |
-24.18 |
-26.04 |
-9.50 |
-2.13 |
-0.54 |
-0.23 |
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95th percentile |
|
-6.84 |
-15.13 |
-24.98 |
-27.44 |
-11.10 |
-6.75 |
-4.41 |
-3.57 |
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MSCI Emerging markets |
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-5.64 |
-13.60 |
-20.48 |
-21.69 |
-6.15 |
-0.49 |
-0.18 |
0.43 |
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The information herein has been drawn from sources believed to be reliable, but the accuracy or completeness of the information is not guaranteed, nor in providing it does LifeWorks Investment Management Ltd. (“LWIM”) or its affiliates (“LifeWorks”) assume any responsibility or liability. LWIM or LifeWorks is not liable for any errors or omissions in the information or for any loss or damage suffered. Where such statements are based in whole or in part on information provided by third parties, they are not guaranteed to be accurate or complete. The information does not provide individual financial, legal, tax or investment advice and is for information purposes only.
