Northern Trust Canada: Equities Drive First-Quarter Gains for Canadian Plan Sponsors
May 11 2017 - 4:38PM
Business Wire
Canadian defined benefit pension plan sponsors recorded an
uptick in returns for the first-quarter of 2017, according to the
Northern Trust Canadian Defined Benefit Pension Plan universe. The
median plan gained 3.0 percent, following a loss of 1.2 percent in
the fourth quarter of 2016. Positive performance was primarily
driven by strong equity markets while fixed income also experienced
positive performance in a reversal from last quarter.
The Northern Trust Canada Universe tracks the performance of
Canadian institutional investment plans, which subscribe to
performance measurement services as part of Northern Trust’s asset
servicing offerings.
“Canadian pension funds had a good start to 2017 after a minor
setback in the fourth quarter of last year,” said Arti Sharma, head
of Northern Trust Canada. “Over the past year, pension funds gained
a healthy 9.5 percent, bolstered by stronger stock market
performance.”
Global equity markets started the year on a strong note with all
broad market indices registering positive performance. The median
return on Canadian Equity at 3.8 percent outperformed the
S&P/TSX Composite by 1.6 percent. Nine out of the 11 GICS
(Global Industry Classification Standard) sectors posted positive
returns, with five sectors reporting gains of 5 percent or
more.
The U.S. Equity market hit fresh all-time highs during the
quarter, with the S&P 500 returning 5.5 percent. Optimism on
the geopolitical front and a stronger Japanese Yen helped the MSCI
EAFE index gain a return of 6.8 percent in the first quarter. A
weaker U.S. dollar, better than expected economic data and easing
concerns over the current U.S. administration’s protectionist
measures contributed to the MSCI Emerging Markets index ending the
quarter on a strong note with a return of 10.9 percent. In the
Northern Trust Canada Universe, the median global equity return of
5.3 percent underperformed the MSCI World index return by 0.5
percent.
The Bank of Canada, citing “significant uncertainties” and
weighing on the outlook for Canada’s economy, held rates steady at
0.5 percent. The Canadian Fixed Income market as measured by the
FTSE TMX Universe gained 1.2 percent for the quarter with long and
mid-term bonds outperforming short-term bonds.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider
of wealth management, asset servicing, asset management and banking
to corporations, institutions, affluent families and individuals.
Founded in Chicago in 1889, Northern Trust has offices in the
United States in 19 states and Washington, D.C., and 22
international locations in Canada, Europe, the Middle East and the
Asia-Pacific region. As of March 31, 2017, Northern Trust had
assets under custody of US$7.1 trillion, and assets under
management of US$1 trillion. For more than 125 years, Northern
Trust has earned distinction as an industry leader for exceptional
service, financial expertise, integrity and innovation. Visit
northerntrust.com or follow us on Twitter @NorthernTrust.
Northern Trust Corporation, Head Office: 50 South La Salle
Street, Chicago, Illinois 60603 U.S.A., incorporated with limited
liability in the U.S. Global legal and regulatory information can
be found at https://www.northerntrust.com/disclosures.
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Northern Trust CorporationMedia Contact:John O’Connell+1 312 444
2388John_O'Connell@ntrs.comhttp://www.northerntrust.com
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