Northern Trust(US:NTRS) Businesswire·2026-02-03 15:15Core Insights - Canadian pension plans demonstrated resilience with a median return of 0.2% for Q4 2025 and a total return of 4.4% for the year, as reported by the Northern Trust Canada Universe [1][2] Economic Environment - The fourth quarter of 2025 experienced market volatility due to geopolitical tensions, trade policy issues, and a U.S. government shutdown lasting 43 days, yet major economies showed reasonable stability [1][6] - The U.S. Federal Reserve cut its overnight interest rate twice during the quarter, while the Bank of Canada cut its benchmark rate in October and maintained it in December, indicating improvements in the labor market [1][7] Market Performance - Canadian equities, as measured by the S&P/TSX Composite Index, rose 6.2% for the quarter and 31.7% for the year, with the Materials sector leading at a remarkable 100.6% return [5] - U.S. equities, represented by the S&P 500 Index, gained 1.1% in CAD for the quarter and 12.4% for the year, with the Health Care and Communication Services sectors showing strong performance [5] - International developed markets, measured by the MSCI EAFE Index, returned 3.4% in CAD for the quarter and 25.7% for the year, with Financials and Utilities being the strongest performers [5] Fixed Income Market - The Canadian fixed income market, as per the FTSE Canada Universe Bond Index, reported a modest decline for the quarter, with short-term bonds showing slight gains while mid and long-term bonds declined [9] Global Economic Indicators - Emerging markets performed well despite global uncertainties, with the People's Bank of China maintaining its loan prime rates amid weak economic data [8]