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Thursday, December 19, 2002 Employer pension plans (trusteed pension funds)Second quarter 2002Trusteed pension funds reported expenditures of $11.2 billion and revenues of $10.6 billion, resulting in a negative cash flow of $668 million as of June 30, 2002. Losses on the sale of stocks were responsible for the high expenditures. When stock prices are lower than their original purchase price, selling off will result in losses, but the objective is to rebalance the portfolio to take advantage of economic sectors which will do better in the future. Total industry assets at market prices tumbled from $580.9 billion at the end of the first quarter to $555.4 billion, down 4.4%. Both the high expenditures and the reduction in the market value of trusteed pension fund assets have the same cause - a reduction in the market value of stocks on the world's stock exchanges. The TSX opened in April, 2002 at 7,851 and closed in June at 7,145 - a drop of 9%. Trusteed pension funds held 21.7% of their assets in foreign investments, when measured at market value. However, the legislated limit of 30% is measured at book value (purchase price). When measured this way, trusteed pension funds held 23.3% of their total assets in foreign investments. Not all funds have foreign assets, some as a matter of investment policy. Others have up to the legislated limit. Available on CANSIM: tables 280-0002 to 280-0004. For more information about the current survey results and related products and services, or to enquire about the concepts, methods, or data quality of this release, contact Client Services (1-888-297-7355; 613-951-7355; fax: 613 951-3012; income@statcan.gc.ca), Income Statistics Division. |
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