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La Caisse Infrastructure Remains ‘Pillar of Stability’ Amid Geopolitical Uncertainty
La Caisse de dépôt et placement du Québec’s infrastructure and real estate investments helped generate a 4.6% return in the first half despite ongoing geopolitical uncertainty.
That level exceeded La Caisse’s benchmark portfolio’s 4.3% return. The pension-fund manager said the infrastructure and real estate investments remained ‘a pillar of stability’ despite the difficult times.
“In the first half of the year, tariff issues related to U.S. policy were a major concern,” said Charles Emond, president and CEO of La Caisse. “Financial markets were highly volatile, with a correction in April followed by a robust rebound. Despite this overall performance, we must remain vigilant as we have yet to see the full effects of the U.S. administration’s measures.
“Against significant rate increases, stock market concentration and challenges in real estate over the past five years, our portfolio held strong and outperformed its benchmark portfolio. Our depositors’ plans, and therefore Quebecers’ pensions, are in excellent financial health.”
The infrastructure results, disclosed in the organization’s latest quarterly earnings report, were driven mainly by transportation assets, though they trailed the benchmark index’s 8.1% gain, which benefited from energy demand linked to artificial intelligence. The pension-fund manager said its infrastructure teams completed nearly $4 billion in acquisitions — mostly abroad — in telecommunications, data centres and power transmission, while making targeted sales to secure gains. Over five years, the infrastructure portfolio recorded an annualized return of 11.2%, topping the index’s 9.0%, aided by diversification and strong positions in renewable and transition energy, ports, highways and telecommunications.
In real estate, La Caisse reported a 0.1% return for the first half, compared with the benchmark’s 1.2%. Values in most sectors stabilized, with shopping centres and offices producing solid yields, though higher interest rates weighed on performance.
The five-year annualized return was 0.3%, matching the index’s 0.4%, with challenges stemming from a heavy U.S. office exposure. The fund said its shift toward sectors such as logistics since 2020 has been favourable over the longer term.
