Soaring Stocks Boosted Canada’s Crown-Jewel Pensions Amid PE Rut

Canada’s pensions have spent years betting that illiquid, private bets will yield superior returns. Lately, though, public markets have been doing the heavy lifting for them.

Stock portfolios of at least four of Canada’s largest pension funds drove returns for three consecutive years, according to a Bloomberg analysis. A volatile yet resilient stock market spurred gains that exceeded private equity returns as the asset class has yet to bounce back from a prolonged deal drought.