BNY data shows Canadian equities and hedge funds led gains as US stocks lagged in Q1
Canadian pension plan sponsors generated positive returns in the first quarter of 2026 despite uneven market conditions and weakness in US equities, according to new data from the BNY Canadian Asset Strategy View universe.
The median return for the total fund universe reached 0.52% during the quarter, while public pension plans outperformed other plan categories with a median gain of 0.83%. Plans with more than $1 billion in assets under management also exceeded the broader universe median return.
Canadian equities emerged as the strongest-performing traditional asset class in the quarter, posting a median return of 3.58%, although that trailed the S&P/TSX Composite Index gain of 3.93%. Emerging markets equities also delivered solid results with a median return of 3.13%, ahead of the MSCI Emerging Markets Index return of 1.71%.
International equities generated a median quarterly return of 1.18%, outperforming the MSCI EAFE Index return of 0.67%, while global equities declined 0.94% but still finished ahead of the MSCI World Index loss of 1.73%.
US equities were the weakest major equity segment during the quarter, with a median return of negative 1.96%. Still, that result surpassed the S&P 500 Index decline of 2.60%.
Among alternative assets, hedge funds led performance with a median return of 2.97%, followed by private equity at 2.58%. Real estate produced a median quarterly gain of 1.16%.
Fixed income returns were subdued, with Canadian fixed income portfolios returning a median 0.22%, closely matching the FTSE Canada Universe Bond Index return of 0.23%.
The BNY Canadian Asset Strategy View universe tracks 69 Canadian corporate, public and university pension plans and provides peer comparison data for institutional investors.
