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Fourth quarter of positive median returns since the initial market reaction to the pandemic
TORONTO, May 3, 2021 /CNW/ - The median return of the BNY Mellon Canadian Master Trust Universe, a BNY Mellon Global Risk Solutions fund-level tracking service, was +0.60% for the first quarter of 2021. These results mark the fourth consecutive positive quarterly median return following the initial pandemic reaction in Q1 2020. The one-year median return as of March 31, 2021 was +18.90%, while the median 10-year annualized return was +8.29%.
The BNY Mellon Canadian Master Trust Universe results are based on $290.7 billion worth of investment assets in Canadian investment plans, with the average plan size of $3.3 billion. The Universe is designed to provide peer comparisons by plan type and size, and it comprises 87 Canadian corporate, public and university pension plans. Additional insight into the plan results is provided by BNY Mellon s Asset Strategy View, and the U
Plans rely on outside help for better returns, talent, and technology.
Although Canadian pension funds are increasingly looking to move asset management in-house, they still rely heavily on external managers as they seek better returns, talent, and technology, according to a recent report from CIBC Mellon.
The CIBC report is based on a survey of 50 major Canadian pension managers with average assets under management (AUM) of C$31 billion (US$24.5 million). Approximately three-quarters of the plans surveyed were public, with the remainder being private.
According to the findings of the survey, the pension funds’ focus on cost savings has been motivating them to move more of their operations in-house. Of the pension funds that have taken asset management in-house, 66% said they seen savings as a result, with the vast majority of those (91%) seeing savings of more than 10%, and 35% saying the moves have saved them more than 20%.