|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
While many app developers are comfortable building apps for the smartphone, there is a whole new world out there. In his session at @ThingsExpo, Narayan Sainaney, Co-founder and CTO of Mojio, will discuss how the business case for connected car apps is growing and, with open platform companies having already done the heavy lifting, there really is no barrier to entry.
Aug. 30, 2015 05:00 PM EDT Reads: 121
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
Aug. 30, 2015 04:00 PM EDT Reads: 142
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of technology leadership, Micron's memory solutions enable the world's most innovative computing, consumer,...
Aug. 30, 2015 01:30 PM EDT Reads: 210
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevOps to advance innovation and increase agility. Specializing in designing, imple...
Aug. 30, 2015 01:00 PM EDT Reads: 271
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Aug. 30, 2015 10:30 AM EDT Reads: 867
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Treloar, President and COO of Bebaio, will explore examples of brands transforming their businesses by t...
Aug. 30, 2015 10:15 AM EDT Reads: 214
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes about through a Communications Platform as a Service which allows for messaging, screen sharing, video...
Aug. 30, 2015 09:15 AM EDT Reads: 609
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and analyzed? As an area of investment, how might a retail company move towards an innovation methodolo...
Aug. 30, 2015 09:15 AM EDT Reads: 437
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of IoT applications and projects. Business operations, IT, and data scientists need advanced analytics t...
Aug. 30, 2015 08:30 AM EDT Reads: 388
A producer of the first smartphones and tablets, presenter Lee M. Williams will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. In his session at @ThingsExpo, Lee Williams, COO of ETwater, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater.
Aug. 30, 2015 07:00 AM EDT Reads: 118
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
Aug. 30, 2015 01:00 AM EDT Reads: 386
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Aug. 30, 2015 01:00 AM EDT Reads: 434
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of streaming data in the cloud with an enterprise grade SLA. It features built-in integration with Azur...
Aug. 28, 2015 07:45 PM EDT Reads: 204
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Aug. 28, 2015 06:00 PM EDT Reads: 333
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device access to health records while reducing operating costs and complying with government regulations.
Aug. 26, 2015 07:00 AM EDT Reads: 127
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
Aug. 2, 2015 11:15 AM EDT Reads: 552
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Aug. 1, 2015 10:00 AM EDT Reads: 477
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
Jul. 30, 2015 07:30 PM EDT Reads: 1,564
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with APIs within the next year.
Jul. 30, 2015 02:30 PM EDT Reads: 278
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
Jul. 30, 2015 12:00 PM EDT Reads: 2,226