Pensions plans gained 3.4 per cent in Q4: StatsCan

OTTAWA – Statistics Canada says employer-sponsored pension funds were worth more than $1.1 trillion at the end of December, a 3.4 per cent increase from September and up 14.2 per cent from the end of 2010.

The value of pension fund investments in bonds at the end of the fourth quarter increased 3.6 per cent from the third quarter to $424.8 billion while investments in stocks recovered from losses in the third quarter, increasing 2.9 per cent to $338.5 billion.

Smaller amounts were invested in mortgages, real-estate and other types of assets.

The Statistics Canada report covers five million trustee-governed plans sponsored by employers. Another million employer-sponsored plans are managed by insurance companies under contract.

In the fourth quarter, 70.2 per cent of pension fund investments managed by trustees were in domestic holdings and 29.8 per cent in foreign holdings, unchanged from the previous quarter.

Revenue increased 34.4 per cent to $29.2 billion in the fourth quarter due to special payments made by employers to cover pension liabilities, increased investment income and profits from the sale of securities.