La Caisse leans on credit, infra, and Quebec push as private equity and real estate lag
La Caisse missed its 2025 benchmark but still outperformed over five and ten years, while managing $517bn for 48 mainly pension and insurance depositors.
Caisse de dépôt et placement du Québec reported a weighted average return of 9.3 percent on depositors’ funds for the year ended December 31, 2025, below its benchmark portfolio’s 10.9 percent return.
Over five years, the annualized return was 6.5 percent versus 6.2 percent for the benchmark; over ten years, 7.2 percent versus 6.9 percent.
As at December 31, 2025, net assets totalled $517bn. Investment results reached $43bn for one year, $134bn over five years and $245bn over ten years.
The base plan of the Québec Pension Plan, administered by Retraite Québec and La Caisse’s largest fund, posted a 9.8 percent return for one year, 7.8 percent over five years and 8.0 percent over ten years. Its net assets were $163bn, including the additional plan.
Across La Caisse’s nine largest depositors, 2025 returns ranged from 8.6 percent to 10.4 percent; over five years, 4.6 percent to 7.8 percent; over ten years, 5.8 percent to 8.0 percent.
In 2025, the environment featured geopolitical tensions and persistent tariff uncertainty, while the global economy remained resilient and stock markets “posted a robust performance.”
Central banks generally lowered key rates, but long‑term bond yields fell in the United States and rose in several other countries, including Canada.
President and chief executive officer Charles Emond said the portfolio delivered “a good return, with the right level of risk for our depositors” last year.
He said strong public markets drove most of the performance and argued that diversification “remains essential,” because it lets “each asset class…play its part across different market conditions.”
The Equity Markets portfolio returned 17.7 percent in 2025, versus 18.2 percent for its benchmark. La Caisse linked the gap mainly to a more limited contribution from certain Québec stocks and low exposure to gold, which “grew sharply during the year.”
Stock markets rotated away from the US market, perceived as more uncertain, towards Europe, Canada and emerging markets, with technology, materials and finance contributing in emerging countries.
Over five years, Equity Markets returned an annualized 12.4 percent, above the 12.1 percent benchmark, supported by 2021 changes to capture technology stocks and systematic strategies using augmented intelligence.
The Private Equity portfolio returned 2.3 percent in 2025, while its benchmark index, half in public stocks, returned 12.6 percent.
Slowing earnings growth and lower multiples in technology and health care weighed on results, despite good performance in industrials.
Over five years, Private Equity delivered an annualized 11.6 percent, versus 14.7 percent for its index.
Fixed Income returned 6.6 percent in 2025, ahead of its 4.6 percent benchmark.
The Credit portfolio returned 9.6 percent and “recorded its best ever performance against its index,” driven by the private segment and emerging market sovereign debt.
Over five years, Fixed Income returned -0.2 percent annually, versus -1.1 percent for the benchmark, after “the strongest bond market correction in 50 years” in 2022.
Operating expenses fell to 21 cents per $100 of average net assets in 2025, down from 23 cents in 2024 and 26 cents in 2023.
The total cost of internal and external investment management was 74 cents per $100 of average net assets, compared with 67 cents in 2024 and 83 cents in 2023.
Credit rating agencies, including DBRS, S&P, Moody’s and Fitch, have reaffirmed La Caisse’s investment‑grade ratings with a stable outlook.
