Caisse de Depot et Placement du Quebec Reports 5.1% Return

Caisse de Depot et Placement du Quebec, Canada's second-largest pension manager, reported a 5.1% average return for the first half of the year. The result fell short of the firm's 7.5% tracking index and the 6% average return required by depositors to meet long-term obligations.

Net assets rose to C$552 billion. The firm's stock portfolio surged 14.6% due to favorable positioning in global technology and AI-related stocks. However, private equity holdings declined 4.3%, a slump the firm attributed to valuation drops in the insurance, financial services, and technology sectors, which it views as vulnerable to AI adoption.

Chief Executive Officer Charles Emond identified inflation, geopolitical tension in Iran, and the sustainability of the AI investment cycle as primary uncertainties for the remainder of the year. He noted that risks are multiplying even as record investor inflows are deployed into risky assets.