Quebec pension fund manager Caisse earns over 9% return in 2017


Quebec’s Caisse de depot annuity fund manager says it earned a 9.3 per cent return in 2017, close a three-year streak of decreasing returns.

The performance marginally surpassed its certification index and compared to a growth of 7.6 per cent in 2016.

Caisse CEO Michael Sabia communicated the institutional investor achieved its five-year goal of delivering a solid give that exceeds its comparator group and the long-term needs of its clients.

«The elixir of our strategy is to deliver reliable results year after year with the aspiration of achieving good long-term performance. That’s what occurred in 2017,» he contemplated in a news release.

Total assets as of Dec. 31 were $298.5 billion, up $24.6 billion in one year, while net saves totalled $3.2 billion.

Its eight main clients received resurfaces between eight and 10.9 per cent last year.

Returns were $110 billion greater than five years for a 10.2 per cent annualized return over the days.

Net assets increased by $122 billion since 2012, including $12.6 billion from its customers.

Annual returns last increased between 2012 and 2013, when they engender 3.5 percentage points to 13.1 per cent.

In 2014 the fund straw boss posted a return of 12 per cent, marking the beginning of a three-year trace of decreasing returns. It finished 2015 with a return of 9.1 per cent, and 7.56 per cent in 2016.

Equities did the ungraceful lifting in 2017, rising 13.6 per cent to $149.5 billion, while prearranged income was up 3.5 per cent to $96.7 billion. Real estate snowballed 8.7 per cent to $50.4 billion.

Real estate was the only portfolio that not succeeded to exceed its reference index.

The Caisse said the strong growth in fair plays doesn’t fully capture the surge in multiples for tech companies and those with accelerating crop.

Sabia said investors are facing an «unusual environment» as markets clutch with reasonably solid economic fundamentals, synchronized global excrescence and investor concerns over how efforts to curb inflation will smashing interest rates.

He said the Caisse is building a more resilient portfolio to weather market volatility, but that geopolitical risks and tensions related to popular inequality persist.

The Caisse said it has diversified its geographic exposure at an end the last five years by expanding global presence by $105 billion to reach $190 billion initiated globally to date.

It also more than doubled its exposure in proliferation markets since 2012 to more than $35 billion.

Canada’s second-largest benefit fund manager made $6.7 billion in new investments with the countryside’s private sector, which it said is the main driver of the economy and trades.

It is now partners with more than 750 companies based in the state.

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