The CDPQ posts a return of 6.1% in the first half of 2019
The Caisse de depot et placement du Québec posted a return of 6.1% for the first six months of 2019, a result weighed down by the activities of the infrastructure and real estate sectors, but maintaining an annualized return of 8, 3% over five years that remains above that of 7.2% of its reference portfolio.
In unveiling these results on Monday, Caisse President and CEO Michael Sabia once again warned SNC-Lavalin, the institution of which is the largest shareholder, to go into an emergency mode to strengthen the quality of its assets. execution at all levels of the engineering giant.
Michael Sabia reiterated that the Caisse is and will remain a long-term investor in SNC-Lavalin, which it believes is a key part of Canadian engineering, but its remarks showed some impatience with the performance of the Montreal-based company.
As for the results, Mr. Sabia recalled that the direction he wanted to give the Caisse to have what he called an “off-road portfolio” demonstrates its effectiveness. Thus, in a situation where markets have become unpredictable and punctuated with irregular outbreaks and falls, the goal of building a portfolio that can be resilient turns out, in his opinion, a much more reliable strategy.
The businessman points out that the markets have been less responsive to real economic conditions than to the actions anticipated or posed by the US Federal Reserve for several months, so that the resilience strategy ensures greater stability in the growth of the economy. assets, which increased $ 18 billion over the last six months to $ 326.7 billion.
On the real estate side, the Ivanhoé Cambridge subsidiary continued its realignment, particularly towards logistics real estate, in the face of the decline in the shopping center sector, severely affected by online commerce.
In the infrastructure sector, the Caisse notably acquired 30% in Vertical Bridge, a major telecommunications infrastructure company in the United States, 45% interests in two Chilean ports and purchased a natural gas transmission system in the United States. Brazil.
In the latter case, Michael Sabia insisted that the Caisse maintains its objectives to reduce its carbon footprint and reduce its activities in the oil sector, increase its activities in renewable energies, but it specified that natural gas will remain a transitional energy for a while.