CDPQ Returns 4.2% in First Half of 2024 | Chief Investment Officer

Canadian pension fund Caisse de dépôt et placement du Québec reported investment returns of 4.2% for the first half of 2024 to raise its total asset value to C$452 billion ($334.2 billion). The performance, led by the pension fund’s equity investments, matched its return from last year’s first half but fell short of its benchmark portfolio’s 4.6% return.

“The first half of the year was characterized by several factors: strong stock market performance continued to be linked to a historic level of concentration in a handful of technology stocks, the U.S. Federal Reserve’s postponement of the many rate cuts anticipated at the beginning of the year, and modest global economic growth,” said CDPQ President and CEO Charles Emond in a statement.

The pension fund’s equity investments returned 10.9% during the first six months of the year, missing its benchmark’s return of 11.7%. According to CDPQ, the performance by equities has been fueled by stocks related to artificial intelligence, which boosted the main indexes to record levels. Real assets returned 1.5% in the first half, below the 2.1% return produced by its benchmark, and CDPQ’s fixed-income assets declined 1.7% during the period, matching its benchmark’s performance.

CDPQ also reported five- and 10-year annualized gains of 6% and 7.1%, respectively, topping its benchmark’s returns of 5.3% and 6.3%, respectively, during those periods.

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Over the past five years, equities were the pension fund’s top-performing asset class, rising 11.4%, just short of its benchmark’s 11.7% return over the same period. Real assets earned 4.7%, topping its benchmark’s five-year annualized return of 3%. CDPQ’s fixed-income investments have been flat over the past five years, compared with its benchmark’s loss of 0.9%.

Equities were also the CDPQ’s top performer over the past 10 years, with an annualized gain of 10.9%, ahead of its benchmark’s return of 10%, while its real assets returned 6.8% over the same time period, beating its benchmark’s 6.1% return. The pension fund’s fixed-income assets have returned 2.2%, surpassing its benchmark’s return of 1.5%.