The Caisse de dépôt et placement du Québec (CDPQ) is posting a negative return of 5.6% in 2022, a year marked by a simultaneous decline in the stock and bond markets.
The net assets of Quebecers’ woolen socks thus decreased by $18 billion, to stand at $402 billion as of December 31, 2022, according to its results released on Thursday.
Caisse President and CEO Charles Emond pointed out that the first half of the year was marked by the “worst simultaneous correction” in the stock and bond markets in 50 years.
“Faced with this extraordinary context, all our asset classes managed to outperform their indices, while there were few places for investors to take refuge. »
Traditionally, bonds provide some protection against stock market corrections in a diversified portfolio, but rising interest rates weighed on the bond market last year.
The negative return of 5.6% is higher than the 8.3% decline in its benchmark portfolio, the Caisse pointed out.
Over a five-year period, the Caisse obtained an annualized return of 5.8%. The return is 8% over 10 years.
In 2022, the Caisse made $4 billion in new investments in Quebec. The value of total assets in Quebec reached $78.4 billion. Last December, Mr. Emond announced a new goal of reaching $100 billion in assets by 2026.
Management costs also decreased from 0.57% to 0.48%.