Global markets advanced in May 2026 despite a complicated backdrop that included geopolitical uncertainty, persistent inflation concerns and consumer sentiment remaining weak. Surveys showed households continue to be concerned about the cost of living, inflation, and job prospects despite strong financial market performance. While this may feel disconnected from the economic headlines, markets continued to focus on resilient corporate earnings and long-term growth expectations. Market gains were broad-based across regions and market capitalizations.

Equity markets delivered strong gains across regions. The S&P/TSX Composite returned 2.5%, while the S&P 500 returned 6.5% and Russell 2000 returned 5.6% in Canadian dollar terms. International equities also performed well, with the MSCI EAFE returning 4.4% and emerging markets returning 11.0%.

Fixed income markets were positive during the month. The FTSE Canada Universe Bond Index returned 1.4%, while the Bloomberg Global Aggregate Bond Index returned 1.5%. While inflation and rate uncertainty remain important risks, the positive monthly returns indicate that bonds benefited from income and/or more supportive yield movements over the period.

From a currency perspective, the U.S. dollar appreciated approximately 1.2% against the Canadian dollar during the month. This provided a tailwind to unhedged U.S. exposures for Canadian investors, adding to already strong underlying equity market returns.

Against this backdrop, the Balanced Fund returned 2.67% for the month. The Equity Fund returned 3.66%, while the Bond Fund returned 1.31%. The Money Market Fund returned 0.22%.

Disclaimer

The information contained in this market summary is provided for general informational purposes only and is intended to help CSS Pension Plan members understand recent market conditions and the performance of CSS funds. It does not constitute investment advice, and should not be relied upon as the basis for any investment decision.

As a defined contribution plan member, the value of your account and the appropriateness of any particular investment option will depend on your individual financial situation, retirement goals, time horizon, and risk tolerance. Past fund performance is not indicative of future results.

Nothing in this summary should be construed as a recommendation to buy, sell, or hold any investment, or to change your current contribution or investment directions.

If you have questions about your personal account or would like to discuss your individual circumstances, we encourage you to contact a CSS Retirement and Pension Advisor. Our advisors are available to provide guidance tailored to your specific situation.