The Caisse de dépôt et placement du Québec is reporting a 9.4 per cent investment return as at Dec. 31, 2024, pushing its total net assets to $473 billion.
The positive investment result was credited to the performance of public equities (25.5 per cent), private equity (17.2 per cent), infrastructure (9.5 per cent) and fixed income (1.3 per cent). The results were weighed down with real estate (negative 10.8 per cent) returning a loss for the year.
Read: Caisse steering investments toward Quebec companies amid U.S. tariff threat
Overall, the Caisse’s year-end results were below its 11.8 per cent benchmark return. However, it beat its five- and 10-year benchmarks with annualized returns of 6.2 per cent and 7.1 per cent, respectively.
Equities grew due to increased exposure to growth and technology stocks being propelled by advances in artificial intelligence. Last year was a rebound period for private equity after a turbulent interest rate environment in 2023, it said.
Real estate was dragged down due to challenges in the office sector in key U.S. markets like New York and Chicago. However, the investment organization noted the logistics and shopping centre sectors have remained resilient.
Read: Caisse returns 4.2% in first half of 2024, underperforming benchmark
During a press conference, Charles Emond, president and chief executive officer at the Caisse, pointed to the global tariff war, potential reactions from central banks to tariff policy and persistent geopolitical volatility as four key themes the Caisse will monitor in 2025.
The U.S. threatened Canada with a 25 per cent tariff on all imported goods, except energy services, which would see a 10 per cent tariff. The proposed policy was delayed from the start of February to early March following a discussion between U.S. President Donald Trump and Canadian Prime Minister Justin Trudeau. Trump has enacted a fresh tariff policy with China and indicated similar measures could come into place with Mexico and the European Union.
“Last year we were talking about a world in full transformation and this is a theme that’s continuing, politics will have an impact on the economy,” Emond said.