DB fund clients returned 0.4% in Q1: RBC

Canadian defined benefit (DB) pension plans in RBC Investor Services’ (RBCIS) client database posted a median return of 0.4% in the first quarter of 2026, it said in a release Wednesday. The universe includes funds in both the public and private sectors.

“While technology holdings weighed on results, exposure to Canadian energy and materials provided crucial downside protection,” said Isabelle Tremblay, director of client solutions and asset owner lead at RBCIS, in a statement. “The strong showing of domestic resource sectors helped moderate losses that would have been significantly deeper with purely international portfolios.”

The plans’ equity allocations returned 3.9% for the quarter, matching the S&P/TSX composite index. While the information technology sector was down 22.5% in the first three months of the year, energy sector gains of 30.1% following the closure of the Strait of Hormuz cushioned the losses.

Global equity in client plans dropped 0.9%, half of MSCI World Index’s 1.8% dip. RBCIS credited the outperformance to active management limiting losses. At the same time, U.S. equities fell by 2.6%, largely pulled down by tech stocks.

Emerging markets returned 1.6%, but there was significant volatility throughout the quarter. The MSCI Emerging Markets Index rose 14.3% in January and February as Taiwan and Korea gained on AI-related strengths, before falling 11% in March as the U.S.-Israeli war on Iran drove up energy prices and hurt energy-importing markets.

Fixed income yielded 0.2% in the first quarter, matching the FTSE Canada Universe Bond Index. Bonds across all maturities went up in January and February before retreating in March as inflation concerns renewed. Long-term bonds saw the sharpest retreat, dropping 3.6% in March.

Jonathan Got

Jonathan Got is a reporter with Advisor.ca and its sister publication, Investment Executive. Reach him at jonathan@newcom.ca.