As equity markets react dramatically to the virus, Canadian defined benefit plans are benefiting from diversification of return-seeking investments and derisking.

By Rick Baert

Canadian pension fund investors that have followed the national trend of diversifying assets from traditional equities into infrastructure and real assets were better prepared to ride out the worldwide market volatility resulting from the COVID-19 outbreak.

Calum Mackenzie

That’s according to Calum Mackenzie, partner and head of investments, Canada, at Aon, who added that the move to more infrastructure and real assets reduced pension plans’ equity exposure while still opening them to return-seeking investments.

“That’s been a broad trend,” Mackenzie said. “We’ve