Canadian dollar spoils pension gains

Currency losses continued to eclipse global equity returns
By
|hrreporter.com|Last Updated: 01/25/2008

Canada’s soaring dollar “wreaked havoc” on pension funds in the third quarter of 2007, according to a survey released by RBC Dexia Investor Services in Toronto. Within the $340-billion RBC Dexia “universe,” Canadian pensions lost 0.7 per cent in the quarter, trimming year-to-date results to just 1.8 per cent.

Currency losses continued to eclipse global equity returns. Year to date, the Morgan Stanley Capital International World index climbed 8.0 per cent in local currency terms, but this translates to a 4.1-per-cent drop in value when converted for Canada.