Pension funds post largest investment losses since financial crisis in 2008

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Although pension plans earned positive returns to finish 2022, they are facing many of the same pressures in 2023

Canadian defined-benefit pension plans collectively suffered their largest losses since the 2008 financial crisis in 2022, recording a median decline in assets of 10.3 per cent despite a partial recovery in the final months of the year, according to a survey from Royal Bank of CanadaPension assets suffered heavy losses in the first two quarters of 2022 before starting to recover in the back half of the year. In the final quarter, pension assets returned 3.

“In the next few months, plan sponsors will need to be attentive to risk factors such as the economic impact of the central banks’ actions, ongoing geopolitical tensions and ongoing efforts to contain the COVID virus outbreak in certain emerging markets,” Niki Zaphiratos, managing director for asset owners at RBC I&TS, said in a news release.

Yet for pension plans, there was a silver lining to rapid interest-rate increases, which caused future liabilities to fall. As a result,, meaning their assets were greater than their liabilities. And higher yields from fixed-income securities could also give pension plan investment managers more options to reduce risk-taking in their portfolios over the coming year.

 

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Why is there no welfare investment. Pensioners WORKED for their right to collect,Welfare bums do not.

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