CDPQ posts 4.2% return for first six months of 2024

The Caisse de dépôt et placement du Québec (CDPQ) posted a return of 4.2 per cent for the first six months of 2024, underperforming its benchmark index of 4.6 per cent.

However, the average annualized return over five years was higher than the benchmark portfolio for Quebecers' nest eggs. At 6 per cent, compared with 5.3 per cent for the benchmark, it represents nearly $14 billion in added value, according to the Caisse.

On Wednesday, the Caisse presented an update on its results for the first half of the year. As of June 30, 2024, CDPQ's net assets stood at $452 billion, an increase of $18 billion compared with the end of 2023.

CDPQ's President and CEO reported that the months of January to June were marked by various factors. These ranged, he said, from modest global economic growth, to the U.S. Federal Reserve postponing anticipated rate cuts, to strong stock market performance "which continued to be linked to a historic level of concentration in a handful of technology stocks."

"During this period, our diversified portfolio performed well overall, and our depositors' plans also remain in excellent financial health. Discipline is needed going forward, as the second half of the year has already seen its share of ups and downs and volatility," commented Charles Emond in a news release.

With regard to its real estate portfolio, the Caisse reported a negative return of 3.6 per cent over six months, compared with an index return of -0.9 per cent. The institution attributed it in particular to difficulties in the office sector and the high interest rate environment, which weighs on financing costs.

- This report by The Canadian Press was first published in French on Aug. 14, 2024.