Over the first quarter of 2026, the Balanced Fund returned 0.51%, while the Equity Fund declined 0.28%, the Bond Fund gained 0.22%, and the Money Market Fund returned 0.53%. Performance during the quarter reflected a volatile market environment, where strong momentum early in the year reversed sharply following geopolitical developments in the Middle East.
The first quarter of 2026 was marked by increased market volatility driven by geopolitical tensions, inflation concerns, and uncertainty around the path of interest rates. Sentiment deteriorated late in the quarter following the outbreak of war involving Iran, which pushed oil prices higher and increased concerns around inflation, consumer spending, and global economic growth.
Canadian equities continued to outperform most global markets during the quarter, supported by strong performance in energy and resource-related sectors as commodity prices increased. International and emerging market equities produced modest positive returns, while U.S. equities declined as large technology and growth-oriented companies faced increased volatility. Markets broadly recovered some losses toward the end of March, highlighting how quickly investor sentiment can shift during periods of uncertainty.
Fixed income markets experienced mixed results during the quarter. Bond markets sold off alongside equities at various points as investors reassessed inflation expectations and the outlook for interest rates, limiting the traditional diversification benefits often expected from fixed income. Despite this environment, interest income continued to support overall bond returns and most of the Plan’s fixed income managers modestly outperformed their benchmarks.
Real estate markets showed early signs of stabilization as transaction activity and investor sentiment gradually improved, although conditions remained uneven across sectors and regions. Infrastructure continued to deliver resilient performance, supported by defensive business models, inflation-linked cash flows, and continued demand for essential services. Currency movements also influenced returns during the quarter, as the Canadian dollar weakened against the U.S. dollar, benefiting certain foreign-denominated investments when measured in Canadian dollars.
Read the full Q1 2026 Quarterly Investment Report