Markets rising, pensions still underperforming

Survey shows pension plans deficits almost unchanged despite market surge
||Last Updated: 11/12/2003


espite improving financial markets in the second quarter of 2003, Canadian pension plans are not faring much better than they were at the beginning of April, according to a survey by Mercer Investment Consulting.

“The second quarter was better all around, particularly in equity markets, with large cap and small cap, value and growth, performing well,” said Marcel Larochelle, practice leader for Mercer Investment Consulting. “Unfortunately, pension fund liabilities have risen in parallel with the assets because of the falling long-term interest rates. Therefore, deficits remain as large as they were at the start of the quarter.”