MONTREAL - The Caisse de Depot et Placements, Quebec's public pension fund, has posted its largest single-year gain in the past five years.
The fund gained 13 per cent or $20 billion in 2010, mostly due to high oil prices, the strength of the Canadian dollar, and low interest rates.
While the gains are impressive, the fund's value of $151.7 billion is still below its all-time high value of $155 billion posted in 2007.
Caisse President Michael Sabia credits the cautious approach the fund has taken since he was put in charge.
"I think 2010 was really about three things," he said.
"First a pretty turbulent environment in the markets. Second the actions we took to protect the portfolio. And of course number three and always very important, to focus on doing the things we are good at."
Shaky returns under past president
In 2008 the Caisse took a massive hit to its investments, losing $40 billion because it was heavily exposed to Asset-Backed Commercial papers -- essential junk mortgages taken out by people who could not afford to own a home.
That decrease in value forced a change in management, with President Henri-Paul Rousseau accepting full responsibility and stepping down from his position.
He was replaced by Michael Sabia, former CEO of Bell Canada, who promised a new approach to the Caisse, and in 2009 the fund posted modest gains of about 10 percent, doing much better in the second half of the year than the first
That new focus has been effective.
In 2010, as in 2009, ten of the funds 17 portfolios made gains that were better than the indexed market.
