Investments
Canadian Equities
Allocation
10.0%
Annual return
18.52%
Exposure
$916 M
Benchmark
21.02%
2024 performance
The Fund’s Canadian Equity allocation delivered a return of 18.52% in 2024, compared to its benchmark return of 21.02%. This performance was driven by an 18.79% return from the Large Cap Fund and a 16.54% return from the Low Volatility Fund. While the Large Cap Fund underperformed its benchmark by 286 basis points, the Low Volatility Fund outperformed its benchmark by 123 basis points.
Canadian equities posted double-digit returns for the second consecutive year, driven by resilient economic growth and central bank rate cuts. Gains were roadbased, with all S&P/TSX sectors except Communication Services delivering positive returns, led by strong performance in Information Technology, Financials, and Gold equities.
The Large Cap Canadian Equities Fund delivered strong absolute returns but lagged the benchmark due to underperformance from a few idiosyncratic holdings and under allocation to highperforming benchmark weights. The Low Volatility Fund achieved strong riskadjusted returns, driven by favourable sector weighting and stock selection.
Investment approach
Most Canadian equity assets are allocated to our internally managed Canadian Large Cap Equity Fund. This fund aims to deliver long-term returns that exceed the S&P/TSX benchmark, while maintaining disciplined risk management, particularly in light of the Canadian market’s significant cyclical and commodity exposure. Our investment strategy emphasizes companies with robust and defensible business models, healthy margins, strong free cash flow, and clear growth opportunities.
We also internally manage a Canadian Low Volatility Equity Fund, benchmarked against the BMO Low Volatility Canadian Equity ETF. This fund is designed to reduce the overall volatility of the Canadian equity exposure. It seeks to outperform the S&P/TSX during market downturns while delivering strong risk-adjusted returns over the long term.
Capital allocation
The Fund’s allocation to Canadian equities stood at 10.0%, closely aligned with the policy benchmark weight of 9.5%. At yearend, Canadian equities represented 18.8% of the Fund’s total public equity exposure.
Within this allocation, 92% of the capital was invested in the Canadian Large Cap Equity Fund, while the remaining 8% was allocated to the Canadian Low Volatility Equity Fund.
Canadian Equities
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Allocation
10.0%
Annual return
18.52%
Exposure
$916 M
Benchmark
21.02%
2024 performance
The Fund’s Canadian Equity allocation delivered a return of 18.52% in 2024, compared to its benchmark return of 21.02%. This performance was driven by an 18.79% return from the Large Cap Fund and a 16.54% return from the Low Volatility Fund. While the Large Cap Fund underperformed its benchmark by 286 basis points, the Low Volatility Fund outperformed its benchmark by 123 basis points.
Canadian equities posted double-digit returns for the second consecutive year, driven by resilient economic growth and central bank rate cuts. Gains were roadbased, with all S&P/TSX sectors except Communication Services delivering positive returns, led by strong performance in Information Technology, Financials, and Gold equities.
The Large Cap Canadian Equities Fund delivered strong absolute returns but lagged the benchmark due to underperformance from a few idiosyncratic holdings and under allocation to highperforming benchmark weights. The Low Volatility Fund achieved strong riskadjusted returns, driven by favourable sector weighting and stock selection.
Investment approach
Most Canadian equity assets are allocated to our internally managed Canadian Large Cap Equity Fund. This fund aims to deliver long-term returns that exceed the S&P/TSX benchmark, while maintaining disciplined risk management, particularly in light of the Canadian market’s significant cyclical and commodity exposure. Our investment strategy emphasizes companies with robust and defensible business models, healthy margins, strong free cash flow, and clear growth opportunities.
We also internally manage a Canadian Low Volatility Equity Fund, benchmarked against the BMO Low Volatility Canadian Equity ETF. This fund is designed to reduce the overall volatility of the Canadian equity exposure. It seeks to outperform the S&P/TSX during market downturns while delivering strong risk-adjusted returns over the long term.
Capital allocation
The Fund’s allocation to Canadian equities stood at 10.0%, closely aligned with the policy benchmark weight of 9.5%. At yearend, Canadian equities represented 18.8% of the Fund’s total public equity exposure.
Within this allocation, 92% of the capital was invested in the Canadian Large Cap Equity Fund, while the remaining 8% was allocated to the Canadian Low Volatility Equity Fund.