Caisse de Depot et Placement du Quebec, Montreal, scored a 4.2% return in the first half of the year, as big gains in public and private equities helped the pension fund overcome losses on real estate and bonds.
CEO Charles Emond cited multiple factors that drove investment results. Stock markets enjoyed a technology-driven boost, while stronger-than-expected economic growth in the U.S. meant that North American bond yields rose — hurting fixed-income returns.
Quebec’s public pension fund outperformed the market with a 13.6% return for its equity markets portfolio, above the benchmark of 13.2%. Private equity holdings gained 6.9%.
Discipline is required for the second half of the year, which has “already seen its share of twists and volatility,” Emond said in a statement.
CDPQ’s infrastructure portfolio continued to perform well with a six-month return of 5.3%, topping its benchmark index by 100 basis points.
Real estate remained a drag on returns, however. That asset class lost 3.6%, reflecting the troubles in the office sector and the pain of higher interest rates.
Total assets grew to C$452 billion ($330 billion) as of June 30.
