|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
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, will draw together recent research and lessons learned from emerging and established ...
Oct. 24, 2016 04:30 AM EDT Reads: 1,289
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
Oct. 24, 2016 04:30 AM EDT Reads: 2,494
One of biggest questions about Big Data is “How do we harness all that information for business use quickly and effectively?” Geographic Information Systems (GIS) or spatial technology is about more than making maps, but adding critical context and meaning to data of all types, coming from all different channels – even sensors. In his session at @ThingsExpo, William (Bill) Meehan, director of utility solutions for Esri, will take a closer look at the current state of spatial technology and ar...
Oct. 24, 2016 04:00 AM EDT Reads: 1,716
SYS-CON Events announced today that Streamlyzer will exhibit 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. Streamlyzer is a powerful analytics for video streaming service that enables video streaming providers to monitor and analyze QoE (Quality-of-Experience) from end-user devices in real time.
Oct. 24, 2016 03:45 AM EDT Reads: 956
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...
Oct. 24, 2016 03:45 AM EDT Reads: 883
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
Oct. 24, 2016 03:30 AM EDT Reads: 9,668
Cloud based infrastructure deployment is becoming more and more appealing to customers, from Fortune 500 companies to SMEs due to its pay-as-you-go model. Enterprise storage vendors are able to reach out to these customers by integrating in cloud based deployments; this needs adaptability and interoperability of the products confirming to cloud standards such as OpenStack, CloudStack, or Azure. As compared to off the shelf commodity storage, enterprise storages by its reliability, high-availabil...
Oct. 24, 2016 02:45 AM EDT Reads: 1,100
The IoT industry is now at a crossroads, between the fast-paced innovation of technologies and the pending mass adoption by global enterprises. The complexity of combining rapidly evolving technologies and the need to establish practices for market acceleration pose a strong challenge to global enterprises as well as IoT vendors. In his session at @ThingsExpo, Clark Smith, senior product manager for Numerex, will discuss how Numerex, as an experienced, established IoT provider, has embraced a ...
Oct. 24, 2016 02:30 AM EDT Reads: 1,051
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
Oct. 24, 2016 01:15 AM EDT Reads: 1,891
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 7-9, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
Oct. 24, 2016 01:00 AM EDT Reads: 3,573
SYS-CON Events announced today that SoftNet Solutions will exhibit 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. SoftNet Solutions specializes in Enterprise Solutions for Hadoop and Big Data. It offers customers the most open, robust, and value-conscious portfolio of solutions, services, and tools for the shortest route to success with Big Data. The unique differentiator is the ability to architect and ...
Oct. 24, 2016 01:00 AM EDT Reads: 795
In the next forty months – just over three years – businesses will undergo extraordinary changes. The exponential growth of digitization and machine learning will see a step function change in how businesses create value, satisfy customers, and outperform their competition. In the next forty months companies will take the actions that will see them get to the next level of the game called Capitalism. Or they won’t – game over. The winners of today and tomorrow think differently, follow different...
Oct. 24, 2016 12:45 AM EDT Reads: 969
“Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. CloudBerry Backup is a leading cross-platform cloud backup and disaster recovery solution integrated with major public cloud services, such as Amazon Web Services, Microsoft Azure and Google Cloud Platform.
Oct. 24, 2016 12:45 AM EDT Reads: 1,350
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, will be adding the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining sensor...
Oct. 24, 2016 12:45 AM EDT Reads: 762
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 smar...
Oct. 24, 2016 12:15 AM EDT Reads: 890
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
Oct. 23, 2016 11:45 PM EDT Reads: 11,363
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
Oct. 23, 2016 10:30 PM EDT Reads: 4,608
November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Penta Security is a leading vendor for data security solutions, including its encryption solution, D’Amo. By using FPE technology, D’Amo allows for the implementation of encryption technology to sensitive data fields without modification to schema in the database environment. With businesses having their data become increasingly more complicated in their mission-critical applications (such as ERP, CRM, HRM), continued ...
Oct. 23, 2016 09:15 PM EDT Reads: 986
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 Arch...
Oct. 23, 2016 09:00 PM EDT Reads: 5,996
SYS-CON Events announced today that Enzu will exhibit 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. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their online busine...
Oct. 23, 2016 08:45 PM EDT Reads: 1,294