Caisse de Depot et Placement du Quebec generated a 9.3% overall return in 2025, lifting net assets to C$517bn, equivalent to approximately $378bn.

The result trailed the fund’s benchmark return of 10.9%, reflecting softer private equity performance and the depreciation of the US dollar.

Private equity returned 2.3% during the year, weighed down by slower earnings growth and lower valuation multiples in certain technology and healthcare holdings.

Despite this, other asset classes generated robust performance. The equity markets portfolio returned 17.7%, driven by non-US markets and technology stocks. Infrastructure rose 9.2%, supported by energy, ports, and highway assets. The credit portfolio delivered 9.6%, marking its strongest performance relative to benchmark, aided by private credit and emerging sovereign debt.

Real estate returned 0.2%, affected by high financing costs and weaker performance in China.

“Last year, our overall portfolio posted a good return, with the right level of risk for our depositors,” Chief Executive Officer Charles Emond said in a statement. “As public markets were particularly strong, they were the main driver of our annual performance. In an environment shaped by uncertainty and profound changes that are likely to persist, diversification remains essential, allowing each asset class to play its part across different market conditions,” he added.

Emond also noted that concentration risk linked to artificial intelligence warrants caution, as a significant portion of the S&P 500 is tied to AI-related valuations.

La Caisse maintains approximately 40% exposure to US assets, supported by active risk management and partial currency hedging that protected C$3.6bn.

The results highlight the resilience of diversified pension portfolios while underscoring the evolving performance dynamics within private equity allocations.

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