Canadian pension plans post median Q3 return of -2.6% as bond yields rise, RBC says
TLT•Canadian defined benefit pension plans returned a median -2.6% in Q3 2026, bringing year-to-date returns to 4.5%. Fixed-income portfolios lost 5.1% as 10-year Government of Canada bond yields rose 61 basis points.
1. Q3 pension returns
Canadian defined benefit pension plans posted a median return of -2.6% in Q3 2026, while year-to-date returns reached 4.5%. Fixed-income portfolios fell 5.1%, compared with a 3% decline in the FTSE Canada Universe Bond Index. The FTSE Canada Long Overall Index dropped 6.3%, the steepest loss among the cited bond benchmarks.
2. Yields and equities
Government of Canada 10-year bond yields rose 61 basis points, potentially improving pension funded status by reducing future liability values. Equity portfolios remained positive: Canadian holdings returned 1.6%, versus 1.2% for global holdings.
