|By PR Newswire||
|August 15, 2014 11:31 AM EDT||
MONTRÉAL, Aug. 15, 2014 /CNW/ - La Caisse de dépôt et placement du Québec provided an update today on its performance as at June 30, 2014. At the end of this period, the four-year average annual return was 11.1%, generating net investment results of $71.5 billion. For the first six months of the year, the weighted average return on clients' funds stood at 6.7%. Net assets totalled $214.7 billion.
Caisse overall return vs. benchmark portfolio
A chart is available on La Caisse's website
"In the first half of the year, the global economy performed as we generally expected, and the U.S. economy proved robust," said Michael Sabia, President and Chief Executive Officer of La Caisse. "Overall, world markets improved, due in part to lower interest rates. Canadian equity regained momentum and made up for some of the sluggishness of recent years by outperforming the other markets.
"Our 6.7% return reflects market performance during the past six months and contributes to our long-term performance. And this is what counts. Our annualized return of 11.1% over four years is slightly above that of its benchmark portfolio and exceeds our clients' needs.
"The investment environment will become increasingly demanding. The challenges ahead include modest and fragile global economic growth, high geopolitical risks, the level of interest rates and, more generally, the normalization of monetary policies," added Mr. Sabia.
HIGHLIGHTS OF CAISSE ACHIEVEMENTS
In the first six months of the year, La Caisse continued to pursue its strategy to foster the growth of Québec SMEs in all sectors. It notably invested in Ocean Group, a major player in the marine industry, Lumenpulse, a technology company, and BFL Canada, active in the insurance sector. Furthermore, La Caisse committed $80 million to Novacap, a fund that combines both expertise and financing, and $25 million to Anges Québec, dedicated to the growth of innovative companies. In February, La Caisse also launched Innover. Agir., a forum for entrepreneurs that identifies and takes concrete steps to strengthen entrepreneurship in all regions of Québec.
La Caisse invested in large businesses, notably as part of financing activities by the Laurentian Bank, TC Transcontinental and Industrial Alliance. La Caisse, among other initiatives, invested in WSP Group, the Port-Daniel-Gascons cement plant, and Stornoway Diamond, for an amount totalling more than $300 million. Its real estate subsidiary, Ivanhoé Cambridge, committed close to $50 million for the redevelopment of the Place Ste-Foy shopping centre in Québec City.
Over the period, La Caisse's new commitments and investments reached $835 million, maximizing its impact on a greater number of companies in all regions of Québec. That brings its new investments and commitments in Québec companies to almost $11 billion over four years.
In terms of infrastructure, La Caisse acquired a 25% stake in London Array, the world's largest offshore windfarm, located off the coast of the United Kingdom. La Caisse also acquired a 24.7% share in Invenergy, a North American leader in the wind power industry. In keeping with its active management strategy in equity markets, La Caisse's Global Quality Equity portfolio, which uses an absolute-return strategy, reached $25 billion in assets under management as at June 30, 2014.
Internationally, Ivanhoé Cambridge undertook a strategic repositioning of its portfolio and enhanced its presence in certain key markets. It invested more than $250 million in the U.S., notably through the acquisition of a stake in 330 Hudson in Manhattan. It was also a partner in the acquisition of residential buildings in London, representing an investment of more than $200 million, and committed more than $120 million in Brazil for the development of a new shopping centre and the expansion of existing ones.
Over four years, La Caisse's average annual return was 11.1% compared to that of its benchmark portfolio at 10.9%. This performance reflects net investment results of $71.5 billion. Of this amount, more than half came from the Equity portfolios, which generated $42.0 billion, $10.2 billion of which was in Private Equity. Fixed Income and Inflation-Sensitive Investments generated $13.2 billion and $12.4 billion, respectively, in net investment results.
During the four-year period, Fixed Income generated an annualized return of 5.6%, or 1.0% above its index. For their part, the Equity asset class portfolios returned 13.7%, which is in line with the benchmark index. Finally, Inflation-Sensitive Investments, which notably includes the Real Estate and Infrastructure portfolios, recorded a 13.3% return, below that of its index. This difference is primarily due to the Infrastructure portfolio, which is compared to a liquid index comprised of publicly-traded securities whose values reflect bullish markets of recent years.
For the six-month period, La Caisse recorded a 6.7% return, which is consistent with its benchmark portfolio. During this period, the Equity asset class returned 8.8%, generating net investment results of $8.1 billion, $1.9 billion of which came from the Private Equity portfolio. With a 4.7% return, the Fixed Income portfolios generated $3.4 billion in net investment results.
Inflation-Sensitive Investments generated a 3.5% return and net investment results of $1.1 billion. In this asset class, $2.5 billion of new infrastructure acquisitions has been recorded since December 2013. The return on the Infrastructure portfolio has been impacted given that the performance of these new assets is not yet fully reflected as at June 30, 2014.
Returns by asset class and differences in relation to the benchmark index
A chart is available on La Caisse's website
As at June 30, 2014, clients' net assets totalled $214.7 billion, up $14.6 billion from $200.1 billion at December 31, 2013. This growth is attributable to net investment results of $13.3 billion, in addition to net deposits of $1.3 billion.
As at June 30, 2014, the Equity asset class represented 48% of the overall portfolio. Fixed Income and Inflation-Sensitive Investments represented 36% and 16% of the portfolio, respectively.
RISK MANAGEMENT AND FINANCIAL STABILITY
La Caisse's available liquidity remains robust and ensures potential commitments can be met. At the beginning of the second half of the year, in July 2014, and as part of its day-to-day activities, La Caisse issued US$2.0 billion in debt securities on the U.S. market. This offering targeted the renewal of existing financing set to mature in November 2014.
In addition, market, credit, counterparty and liquidity risks all remained substantially unchanged from their levels as at December 31, 2013.
Operating expenses and external management fees are in line with forecasts and are at the same level as in 2013, at less than 17 cents per $100 of assets under management.
ABOUT LA CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC
La Caisse de dépôt et placement du Québec is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at June 30, 2014, it held $214.7 billion in net assets. As one of Canada's leading institutional fund managers, La Caisse invests in major financial markets, private equity, infrastructure and real estate, globally. For more information: www.lacaisse.com.
SOURCE Caisse de dépôt et placement du Québec
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Jun. 25, 2016 06:15 PM EDT Reads: 941
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
Jun. 25, 2016 05:00 PM EDT Reads: 625
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Jun. 25, 2016 03:00 PM EDT Reads: 1,492
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Jun. 25, 2016 02:15 PM EDT Reads: 991
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Jun. 25, 2016 01:45 PM EDT Reads: 847
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Jun. 25, 2016 01:15 PM EDT Reads: 1,182
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
Jun. 25, 2016 11:45 AM EDT Reads: 1,145
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Jun. 25, 2016 11:15 AM EDT Reads: 1,144
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
Jun. 25, 2016 11:00 AM EDT Reads: 454
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is...
Jun. 25, 2016 11:00 AM EDT Reads: 1,266
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Jun. 25, 2016 10:30 AM EDT Reads: 1,212
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Jun. 25, 2016 10:15 AM EDT Reads: 1,206
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Jun. 25, 2016 10:00 AM EDT Reads: 644
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
Jun. 25, 2016 09:30 AM EDT Reads: 1,076
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his Day 2 Keynote at @ThingsExpo, Henrik Kenani Dahlgren, Portfolio Marketing Manager at Ericsson, discussed how to plan to cooperate, partner, and form lasting all-star teams to change t...
Jun. 25, 2016 07:45 AM EDT Reads: 1,026
Connected devices and the industrial internet are growing exponentially every year with Cisco expecting 50 billion devices to be in operation by 2020. In this period of growth, location-based insights are becoming invaluable to many businesses as they adopt new connected technologies. Knowing when and where these devices connect from is critical for a number of scenarios in supply chain management, disaster management, emergency response, M2M, location marketing and more. In his session at @Th...
Jun. 25, 2016 07:30 AM EDT Reads: 846
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...
Jun. 24, 2016 01:00 PM EDT Reads: 1,323
Amazon has gradually rolled out parts of its IoT offerings, but these are just the tip of the iceberg. In addition to optimizing their backend AWS offerings, Amazon is laying the ground work to be a major force in IoT - especially in the connected home and office. In his session at @ThingsExpo, Chris Kocher, founder and managing director of Grey Heron, explained how Amazon is extending its reach to become a major force in IoT by building on its dominant cloud IoT platform, its Dash Button strat...
Jun. 24, 2016 12:00 PM EDT Reads: 1,576
industrial company for a multi-year contract initially valued at over $4.0 million. In addition to DataV software, Bsquare will also provide comprehensive systems integration, support and maintenance services. DataV leverages advanced data analytics, predictive reasoning, data-driven diagnostics, and automated orchestration of remediation actions in order to improve asset uptime while reducing service and warranty costs.
Jun. 22, 2016 11:00 AM EDT Reads: 1,347
Vidyo, Inc., has joined the Alliance for Open Media. The Alliance for Open Media is a non-profit organization working to define and develop media technologies that address the need for an open standard for video compression and delivery over the web. As a member of the Alliance, Vidyo will collaborate with industry leaders in pursuit of an open and royalty-free AOMedia Video codec, AV1. Vidyo’s contributions to the organization will bring to bear its long history of expertise in codec technolo...
Jun. 19, 2016 12:45 PM EDT Reads: 1,238