Canadian Pension Plan's Q2 Returns Accelerate Due to Equity Market Recovery Following Tariff Disturbances, According to Northern Trust Pension Universe Data

Canadian Pension Plan's Q2 Returns Accelerate Due to Equity Market Recovery Following Tariff Disturbances, According to Northern Trust Pension Universe Data

In the second quarter of 2025, Canadian pension plans demonstrated relative resilience as they navigated through global economic challenges, market volatility, and shifting trade policies[1][2][4]. Despite a turbulent backdrop of tariff uncertainty and trade tensions, these plans managed to post modest but positive returns.

Equities drove the gains, with Canadian stocks returning approximately 8.3–8.5% in Q2, led by strong results in the Information Technology and Consumer Discretionary sectors[1][2][3]. International equities also delivered solid returns—U.S. markets (S&P 500) gained roughly 5.2%, developed international markets (MSCI EAFE) about 6.2%, and emerging markets around 6.4% in Canadian dollar terms[1][2][3].

Conversely, the Canadian bond market declined modestly by about 0.6% during the quarter[1][2]. The Canadian dollar, however, appreciated over 5% relative to the U.S. dollar, finishing near US$0.7348 at quarter-end, which also influenced returns on currency-sensitive assets[1][2].

Some variation exists across plan types. Canadian pension plans in aggregate showed roughly 0.6% median quarterly returns, while a data set from BNY with a slightly different sample reported a higher median of 1.41%, highlighting relative outperformance by plans with stronger equity exposure and larger asset bases (over $1 billion), as well as foundations and endowments outperforming typical pension plans this quarter[3].

Central banks in Canada and the U.S. held interest rates steady in Q2 to focus on inflation and employment concerns rather than reacting directly to geopolitical developments[4].

Elsewhere, Northern Trust Corporation, a leading provider of wealth management, asset servicing, asset management, and banking services, reported steady performance in the U.S. economy[5]. The company, headquartered in Chicago, Illinois, with a global presence in 24 U.S. states, Washington, D.C., and 22 locations worldwide, had assets under custody/administration of US$18.1 trillion and assets under management of US$1.7 trillion as of June 30, 2025[6].

For media inquiries, contacts for Europe, Middle East, Africa & Asia-Pacific are Camilla Greene and Simon Ansell, with their respective email addresses. For US & Canada, John O'Connell can be reached. The press release about Northern Trust Corporation was issued by Business Wire[7].

References:

1. Canadian Pension Plans Post Modest Returns in Q2 2025
2. Canadian Pension Plans Show Resilience Amid Global Uncertainties
3. BNY Mellon: Canadian Pension Plans Median Return 1.41% in Q2 2025
4. BoC Maintains Overnight Rate at 2.75% in June
5. Northern Trust Corporation Q2 2025 Performance
6. Northern Trust Corporation Annual Report 2025
7. Press Release: Northern Trust Corporation Q2 2025 Results

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