The Caisse de dépôt et placement du Québec posted a 6.7% return in the first half of 2014, pushing assets up to $214.7 billion.
“In the first half of the year, the global economy performed as we generally expected, and the U.S. economy proved robust,” says president and CEO Michael Sabia. “Overall, world markets improved, due, in part, to lower interest rates. Canadian equity regained momentum and made up for some of the sluggishness of recent years by outperforming the other markets.”
During this period, the equity asset class returned 8.8%, generating net investment results of $8.1 billion, $1.9 billion of which came from the private equity portfolio.
With a 4.7% return, the fixed income portfolios generated $3.4 billion in net investment results. Inflation-sensitive investments generated a 3.5% return and net investment results of $1.1 billion. In this asset class, $2.5 billion of new infrastructure acquisitions has been recorded since December 2013.
The return on the infrastructure portfolio has been affected, given that the performance of these new assets is not yet fully reflected as at June 30, 2014.
Over four years, the Caisse’s average annual return was 11.1%, compared with that of its benchmark portfolio at 10.9%. This performance reflects net investment results of $71.5 billion. Of this amount, more than half came from the equity portfolios, which generated $42 billion, $10.2 billion of which was in private equity.
Related articles: