Welcome!

Microsoft Cloud Authors: Pat Romanski, Lori MacVittie, Andreas Grabner, Jim Kaskade, John Basso

News Feed Item

Update as at June 30, 2014 - Four-year annualized return of 11.1% - Six-month return of 6.7%

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.

PERFORMANCE HIGHLIGHTS

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.

ASSET ALLOCATION

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

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

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smart...
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, discussed recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model for s...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2017 New York. The 20th Cloud Expo and 7th @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Internet to enable us all to im...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
"ReadyTalk is an audio and web video conferencing provider. We've really come to embrace WebRTC as the platform for our future of technology," explained Dan Cunningham, CTO of ReadyTalk, in this SYS-CON.tv interview at WebRTC Summit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.