La Caisse Posts 5% First-Half Return as Stocks Rally, Private Equity Slumps

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessLa Caisse Posts 5% First-Half Return as Stocks Rally, Private Equity SlumpsCaisse de Depot et Placement du Quebec, Canada’s second-largest pension manager, fell short of its benchmark in the first half of the year as losses on private equity holdings pulled down the overall return.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Caisse de Depot et Placement du Quebec, Canada’s second-largest pension manager, fell short of its benchmark in the first half of the year as losses on private equity holdings pulled down the overall return.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountNet assets rose to C$552 billion ($396 billion) for the Montreal-based firm, which handles pension money and other capital on behalf of the Quebec government. Its average return was 5.1% over the past six months, below the 7.5% for its tracking index, in an environment marked by geopolitical tension in the Middle East and enthusiasm for artificial intelligence investments. Over a 10-year period, La Caisse has returned 7.5% a year, nearly matching its benchmark. Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againChief Executive Officer Charles Emond said the conflict in Iran, its impact on inflation and interest rates, and the sustainability of the AI investment cycle are sources of uncertainty for the second half. “The enthusiasm surrounding AI is based on expectations — which are already very high — regarding both demand and the profitability of investments that have already been made,” Emond said during a press conference. “So we’re in a situation where risks are multiplying, yet we’re also seeing record inflows from investors being deployed into risky assets.”La Caisse’s stock portfolio recorded a 14.6% return, its “best combination of returns and value-added for a half-year period in 20 years, thanks to favorable positioning in global technology sectors,” La Caisse said in a statement. It noted the market is being driven by an “exceptionally high” concentration of performance from a small group of AI-related stocks.But private equity went in the opposite direction, down 4.3%, as holdings in technology, insurance and financial services saw their valuations crunched because they’re seen as more vulnerable to AI adoption, the money manager said.The fixed income portfolio increased by 1.7% as rising US long-term yields partly limited gains. Premiums on private credit were “favorable,” especially in real estate and infrastructure. Real assets returned 5.5%, with positive results from both infrastructure, such as energy transmission and highways, and real estate. Office properties and shopping centers are recovering from the damage done during the Covid pandemic.La Caisse said its depositors need an average return of 6% to meet their long-term obligations.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.