TORONTO Feb 7 Canadian pension funds averaged a
return of 6.8 percent last year, up from 5.4 percent in 2015, as
they benefited from a mix of investments across sectors and
asset classes, according to research by RBC Investor & Treasury
The country's biggest funds, such as the Canada Pension Plan
Investment Board, have grown dramatically in recent years by
directly investing in assets such as real estate and
infrastructure, as well as equities and bonds.
Experts say that has helped Canadian pension funds achieve
positive returns despite market volatility in the wake of
Britain's decision to leave the European Union and Donald
Trump's unexpected win in the U.S. presidential election.
"Maintaining a diversified portfolio across sectors and
asset classes and keeping a close eye on global developments
were important considerations over a year which came with
remarkable change," said RBC Investor & Treasury Services
executive James Rausch.
Continued uncertainty, including the potential for interest
rate hikes, may affect returns in 2017, RBC said. It said
markets would need to adjust to the new U.S. administration and
cited developments in Europe following the "Brexit" vote and
uncertainty surrounding the Chinese economy as additional
(Reporting by Matt Scuffham; Editing by Lisa Von Ahn)