CANADA - The Caisse de dépôt et placement du Québec achieved net investment returns of C$17.8bn in 2006, but the fund's CEO warned of a dip in returns going forward.
The 12.4% increase marked an improvement on the previous year's 15.2bn rise, and Caisse president and CEO Henri-Paul Rousseau said:
“The value added was mainly because of outstanding returns on Canadian equity, private equity, real estate portfolios and the asset allocation operations.”
However Rosseau warned the 13.8% average return earned over the past three years was not sustainable. “We expect Caisse’s return to be about 7% on a ten-year horizon,” he said.
Between 2003 and 2006, the fund increased its allocation to alternatives – real estate, private equity, infrastructure, hedge funds, commodities, emerging market equities – from 20.6% to 35.6%.
“Our results are due to the sum of the decisions and actions taken by the Caisse teams. I’m convinced we’re on the right track to achieve our ambition of becoming benchmark organisation.”
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