Canadian Capital Market Updates

Capital market results in the second quarter have significantly decreased the Towers Watson Pension Index due to negative asset returns which were coupled with a decrease in the liability discount rate. The net effect on our benchmark plan was a decrease of 7.1% in the Towers Watson Pension Index (from 68.9 to 64.0) for the quarter.

Capital market results in the first quarter have decreased the Towers Watson Pension Index positive overall asset returns were more than offset by a decrease in the liability discount rate. The net effect on our benchmark plan was a decrease of 3.4% in the Towers Watson Pension Index (from 71.3 to 68.9) for the quarter.

Capital market results in the fourth quarter have increased pension plan PBO funded ratios due to positive equity market returns and an increase in the liability discount rate. The net effect on our benchmark plan was an increase of 3.2% in the PBO funded ratio (from 69.1% to 71.3%) for the quarter

Capital market results in the third quarter have increased pension plan PBO funded ratios due to significant equity market returns and the stabilizing of the liability discount rate. The net effect on our benchmark plan was an increase of 5.2% in the PBO funded ratio (from 65.7% to 69.1%) for the quarter.

Capital market results in the second quarter have slightly increased pension plan PBO funded ratios due to significant equity market returns offset by the effects of a significant decrease in the liability discount rate. The net effect on our benchmark plan was an increase of 0.2% in the PBO funded ratio (from 65.6% to 65.7%) for the quarter.

Capital market results in the first quarter have decreased pension plan PBO funded ratios due to continued equity market declines coupled with a decrease in the liability discount rate. The net effect on our benchmark plan was a decrease of 6.3% in the PBO funded ratio (from 70.0% to 65.6%) for the quarter.

Capital market results in the fourth quarter have decreased pension plan PBO funded ratios due to significant equity market declines that were only partially offset by an increase in the liability discount rate. The net effect on our benchmark plan was a decrease of 4.6% in the PBO funded ratio (from 73.4% to 70.0%) for the quarter.

Capital market results in November have decreased pension plan PBO funded ratios due to negative asset returns and a decrease in the liability discount rate. The net effect on our benchmark plan was a decrease of 4.6% in the PBO funded ratio (from 72.2% to 68.9%) for the month of November.

This report reviews how capital market performance affected defined benefit pension plans, with a focus on linked asset/liability results. Specific plan results depend on liability characteristics, portfolio composition and actual investment results, among other factors.

Capital market results in the third quarter have decreased pension plan PBO funded ratios due to negative asset returns that were only partially offset by an increase in the liability discount rate. The net effect on our benchmark plan was a decrease of 3.4% in the PBO funded ratio (from 76.0% to 73.4%) for the quarter.