Canadian and global equities rallied to post strong Q1 2019 returns, according to RBC Investor & Treasury Services (RBC I&TS).
RBC I&TS explained that this helped to lift quarterly returns to 7.2 percent in the first three months of the year.
Q1 2019 equities, led by a rebound in oil price, bounced back to post a return of 12.4 percent compared to a loss of -10.6 percent in Q4 2018.
Meanwhile, the TSX Composite Index posted a Q1 2019 return of 13.3 percent compared to Q4 2018 return of -10.1 percent.
RBC I&TS also revealed that all 11 of the TSX sectors posted gains in Q1 2019, and global equities followed a similar path, returning 10 percent in Q1 2019, reversing a Q4 2018 loss of -7.8 percent.
The MSCI World Index also returned 10 percent in Q1 2019 compared to a Q4 2018 loss of -8.5 percent.
RBC I&TS also found that Canadian fixed income posted positive returns of 5.6 percent, up from 1.8 in Q4 2018.
Long-term bonds had a strong Q1 2019 that helped to propel returns. The FTSE Canada Universe bond index also forged ahead in Q1 2019, posting a return of 3.9 percent, up from 1.8 percent in Q4 2018.
David Linds, managing director, head of Canadian asset servicing, RBC I&TS, commented: “Canadian defined benefit pension plans started 2019 in positive territory as the TSX reached an all-time high, reversing many of the 2018 losses, but asset managers will need to remain vigilant as we head toward the mid-year mark.”
“Many of the underlying concerns, including trade wars, slowing global economic growth as well as ongoing geopolitical unrest are still very relevant and will force asset managers to re-examine their portfolios and risk exposure.”
