The Caisse de depot et placement du Quebec had a 4.2 per cent return on investment for the 2018 fiscal year, the lowest rate of return since 2011 – but higher and Quebec's baseline index of 2.4 percent.

2018 was a difficult year, said Michael Sabia, president and CEO of the Caisse, adding that global equity markets had dropped for the first time in many years.

“We’re focusing on high-quality assets in infrastructure, in real estate, in private equity in our public equity investments -- always this emphasis on quality,” he said.

Since 2011, the Caisse has changed its investment strategy dramatically, focusing more on international investments and moving away from traditional stocks and bonds.

The Caisse's three main asset classes -- equities, fixed income, and real estate/infrastructure -- showed positive returns and overall the Caisse's net worth went up $12 billion to $309.5 billion.

“A positive return of 4.2 per cent is a very favourable result compared to just about any index,” said Daniel Thompson, VP of Lorne Steinberg Wealth Management. “It was a very good return.”

 

Support for SNC-Lavalin

What many are calling good news was overshadowing by questions about the Caisse’s investment in SNC-Lavalin.

Multiple former executives have been charged or convicted in bribery and fraud cases, and the company is facing a ban which would prohibit it from bidding on federal contracts for ten years.

That hasn’t prevented the Caisse from dramatically increased the percentage of shares in the company in the past year, going from 14 to 20 per cent.

"We are convinced about the potential of this company. We have been a long-term investor in this company. I said six, seven years ago that we are not going to throw out the baby with the bathwater with respect to this company. This company has changed itself, and changed itself in fundamental ways with a new management team, a new board of directors, a very different and I think, very effective way of running the company internally. All of that has led to really a very different culture inside this company. A lot of progress is being made," said Sabia.

The ten-year ban would not affect its current projects, including the completion of the Champlain Bridge and the REM transit line.