Caisse de Depot et Placement du Quebec, Montreal, returned 10% on its investments in 2009, raising its net assets to C$131.6 billion (US$123.3 billion) from C$120.1 billion a year earlier, according to a Caisse news release.
The increase was driven primarily by the performance of its equity, fixed income and private equity portfolios in the second half of the year, gains that were partly offset by a decline in the fund's real estate investments.
Caisse's equity portfolio returned 31.4%; private equity, 10.8%; fixed income, 5.8%; real estate, -12.7%; and real estate debt, -20.3%.
The fund's overall investments underperformed its custom benchmark by 4.1 percentage points. About half of the underperformance came from losses in real estate debt, with the rest attributed to underweighting equities in early 2009 and weak first-half performance of its private equity portfolio.
“2009 was a year of transition for the Caisse,” Michael Sabia, the fund's president and CEO, said in the news release. “We balanced our portfolio investments and rebuilt our equity positions. We also re-evaluated our real estate portfolios and repositioned our operations in this sector that has been pummeled by strongly declining international markets.”
Caisse spokesman Maxime Chagnon could not be reached for comment.