- The depositor plans are in excellent financial health
- The base plan of the Québec Pension Plan, representing the pensions of more than six million Quebecers and the largest fund invested with La Caisse, earned a return of 9.8%
- The ambition of $100 billion invested in Québec achieved one year early
MONTRÉAL, Feb. 25, 2026 /CNW/ - La Caisse today presented its financial results for the year ended December 31, 2025. The weighted average return on its 48 depositors' funds was 9.3% for one year, below its benchmark portfolio's 10.9% return. Over longer terms, performance is above the benchmark portfolio: over five years, the annualized return was 6.5%, with the benchmark portfolio at 6.2%; over ten years, it stood at 7.2%, against the benchmark portfolio's 6.9%. As at December 31, 2025, La Caisse's net assets totalled $517 billion.
In 2025, the environment was marked by geopolitical tensions and persistent tariff uncertainty. Nevertheless, the global economy proved resilient and stock markets once again posted a robust performance. Although central banks generally lowered their key rates, long-term bond yields moved in different directions, falling in the United States but rising in several other countries, including Canada.
"Last year, our overall portfolio posted a good return, with the right level of risk for our depositors. 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," said Charles Emond, President and Chief Executive Officer of La Caisse.
"Looking back at the past five years, markets have been volatile and difficult to follow, with pronounced differences between asset classes and sharp fluctuations from one year to the next. Having stayed the course with numerous transactions in key sectors around the world, the advancement of structuring projects in Québec, and the rollout of a new climate strategy even against strong headwinds, all while maintaining the excellent financial health of our depositor plans, are all reasons to be proud of the role and impact of this major institution for Québec," he added.
Return highlights
As at December 31, 2025, La Caisse's investment results totalled $43 billion for one year, $134 billion over five years and $245 billion over ten years.
Forty-eight depositors with different objectives
La Caisse manages the funds of 48 depositors--mainly for pension and insurance plans. The overall portfolio's one-year, five-year and ten-year returns represent the weighted average of these funds. To meet their objectives, investment strategies are adapted to individual depositor risk tolerances and investment policies, which differ considerably.
For one year, returns for La Caisse's nine largest depositors' funds ranged from 8.6% to 10.4%. Over longer periods, the annualized returns varied between 4.6% and 7.8% over five years, and between 5.8% and 8.0% over ten years.
The largest fund invested with La Caisse, the base plan of the Québec Pension Plan, administered by Retraite Québec, posted a return of 9.8% for one year, 7.8% over five years and 8.0% over ten years. As at December 31, 2025, its net assets were $163 billion, including the additional plan.
A chart is available on La Caisse's website
EQUITIES
Equity Markets: Beneficial geographic diversification
Stock markets experienced a year of rotation in 2025, with the U.S. market being perceived as more uncertain, and giving up ground to other stock markets, such as those in Europe, Canada and emerging countries. The latter benefited from good performances in a variety of sectors, including technology, as well as materials and finance. Sound geographic diversification, combined with the quality of execution by portfolio managers, enabled the Equity Markets portfolio to record a return of 17.7%, its third-best performance in ten years, and to outperform the index in the vast majority of mandates. The benchmark index stands at 18.2%. The difference over the period is mainly due to the more limited contribution of certain Québec stocks in the portfolio, as well as its low exposure to the gold segment, which grew sharply during the year.
Over five years, the annualized return was 12.4%, above the 12.1% return of the benchmark portfolio. Performance therefore outpaced the benchmark index despite growing concentration of gains in the main stock market indexes during the period. The portfolio benefited from the 2021 changes aimed to take advantage of technology stocks. The launch of systematic management strategies, which leverage data processing capabilities using augmented intelligence, has also had a significant positive impact.
Private Equity: Slower growth affects portfolio
In 2025, the Private Equity portfolio posted a 2.3% return. This was the result of slowing earnings growth for portfolio companies and lower multiples in the technology and health care sectors. Some investments, although performing well since the initial investment, experienced a setback and weighed on performance during the year, despite the good performance of companies in the industrials sector. The benchmark index, half of which is made up of public stocks, returned 12.6%, as public markets were much more robust than the private market.
Over five years, the portfolio has been one of the main drivers of overall performance, boosted by investments in the industrial, financial and technology sectors, delivering an annualized return of 11.6%. Over the period, the more moderate performance of a handful of stocks explains the difference with the portfolio's performance relative to its index, which stood at 14.7%.
FIXED INCOME
Credit activities are a strong vector of performance
The majority of the Fixed Income asset class is comprised of the Credit and Rates portfolios, with the latter serving as a source of liquidity for the overall portfolio. In 2025, the asset class generated a 6.6% return, above its benchmark index's 4.6%. The Credit portfolio was a strong performance driver, with a return of 9.6%. It recorded its best ever performance against its index, which posted a 6.6% return, due to results obtained in the private segment, emerging market sovereign debt and the quality of execution by the teams.
Over five years, the asset class posted an annualized return of -0.2%, compared with a benchmark return of -1.1%. The good performance of the Credit portfolio over the period, driven by Capital Solutions and Corporate Credit activities, boosted the asset class, but failed to offset the impact from the strongest bond market correction in 50 years that occurred in 2022.
REAL ASSETS
Infrastructure: Consistent performance in diverse market environments
The portfolio has maintained its momentum of recent years, delivering a return of 9.2% in 2025. It benefited from an attractive current yield of 5.0% and the quality of portfolio assets. Energy, ports and highways were the largest contributors to performance. The benchmark index, made up entirely of public stocks, returned 13.4%. It was buoyed by the growth of companies in the electricity segment, which continues to be stimulated by the historic demand for artificial intelligence and weighs heavily in the index.
Over five years, the annualized return was 10.8%, outpacing the index's 8.0% return. The portfolio continues to benefit from asset diversification, with the energy, transportation and telecommunications sectors leading the way, as well as from its strong current yield, across very different cycles over the period, marked in particular by higher inflation.
Real Estate: Progress on turnaround plan in an industry still under pressure
For one year, the portfolio posted a 0.2% return, compared with 1.8% for its benchmark index. In a gradually recovering market, direct portfolio assets in the logistics and residential sectors, as well as offices and shopping centres, posted a 4.4% return, a sign that rental incomes and property values are stabilizing. However, this return was offset by the high cost of financing. Lower performance of assets in China largely explains the difference with the index. It should be noted that the teams were particularly active in portfolio turnover, achieving a high transaction volume, totalling nearly $11 billion, or double the previous year's figure.
Over five years, the portfolio's annualized return was 1.2%, affected by its exposure to the office sector, which has been weakened by changes in working habits, but whose effects were mitigated by favourable performance in logistics. The benchmark index returned 1.4%, reflecting the challenges faced by the industry in recent years.
GLOBAL STRATEGIES THAT GENERATE VALUE
La Caisse's teams also employ global strategies to optimize performance, including positioning on macro factors and foreign currency management:
- Macro tactical strategies contributed positively to overall portfolio performance in 2025, successfully navigating the volatility seen during the year, particularly in April with the unveiling of U.S. tariff policy, which prompted significant movement in global financial markets. These overlay activities, which are designed to improve the risk-return profile and enhance overall performance against the benchmark portfolio, have generated $1.2 billion in added value over one year.
- While the portfolio's exposure to foreign currencies had an adverse impact on 2025's overall performance due to the sharp depreciation of the U.S. dollar, the partial hedging of this currency put in place by the teams nevertheless protected $3.6 billion.
Québec: Ambition of $100 billion achieved ahead of schedule, with investments in local companies and impactful projects
In 2025, La Caisse's assets in Québec reached $100.1 billion. The organization deployed $6.3 billion in new investments and commitments during the year.
Among the teams' accomplishments, we note:
Support to grow companies in key sectors
- Innergex: Privatization of this renewable energy leader, bringing the enterprise value to $10 billion
- Boralex: $200-million financing, doubling existing debt financing in this company of which La Caisse has been a major shareholder for nearly ten years
- Honco Group: Minority interest to consolidate Québec ownership of this steel processing specialist
- Ocean Group: Additional investment in the context of the shareholder structure evolution of this maritime industry leader in Québec and Canada, bringing La Caisse's stake to $120 million
- Germain Hotels: Lead of a $160-million financing round to accelerate its expansion and support the company's succession
Structuring projects: An edge for Québec
- REM: Commissioning of the Deux-Montagnes branch, tripling the network's coverage, with 19 stations spanning 50 km
- TramCité: Announcement of the six consortia qualified for two major contracts in the request for expressions of interest process, an important step in the procurement process for this 19 km tramway project in Québec City
- Alto Québec City-Toronto high-speed train: Cadence team, led by CDPQ Infra, selected as private partner by the Government of Canada and contract signed with the project authority
- Terrion: Transaction worth close to $1.3 billion to create, with Telus, the largest specialized wireless tower operator in Québec and to establish the head office in Montréal
- Laurentian Bank: Support for the acquisition transaction by National Bank and Fairstone Bank, through guarantees obtained to maintain Laurentian Bank's commercial head office and to relocate Fairstone Bank's head office to Québec
- AI expertise: Launch and implementation of a program powered by Vooban to support company productivity in the face of tariff challenges; recruiting for a new cohort currently underway
Climate: A new strategy for increased impact in all sectors of the economy
After exceeding the climate targets set in 2017 and then raised in 2021, La Caisse has developed a new strategy to accelerate the decarbonization of companies and significantly increase its investments linked to the energy transition by 2030, both in Québec and internationally. The objective remains: create sustainable value for depositors while managing the climate risks associated with its portfolio assets. La Caisse's approach was well received by the Canadian group Shift: Action for Pension Wealth and Planet Health, which placed it first in its annual ranking.
By 2030, La Caisse aims to increase its Climate Action investments to $400 billion, in line with its commitment to carbon neutrality by 2050. This strategy is based both on investments in companies that clearly and credibly integrate climate issues into their business model, and on investments in climate solutions, i.e. companies, activities or technologies that help reduce carbon emissions. To find out more, visit this page or see the Sustainable Investing Report to be published in spring 2026.
Financial reporting
The costs incurred by La Caisse to conduct its activities include operating expenses, external management fees and transaction costs. In 2025, operating expenses decreased to 21 cents per $100 of average net assets, compared with 23 cents in 2024 and 26 cents in 2023. This significant reduction in the operating expenses over the past two years reflects the efficiency efforts made by the organization, particularly since the integration of its real estate subsidiaries. The total cost of internal and external investment management is 74 cents per $100 of average net assets as at December 31, 2025, compared with 67 cents in 2024 and 83 cents in 2023. Note that this figure varies depending on different factors, such as asset size, transaction volume and external management fees paid. Cost management remains a priority for the organization and, based on external data, La Caisse's cost ratio is among the lowest in the industry.
The credit rating agencies reaffirmed La Caisse's investment-grade ratings with a stable outlook, namely AAA (DBRS), AAA (S&P), Aaa (Moody's) and AAA (Fitch Ratings).
ABOUT LA CAISSE
At La Caisse, formerly CDPQ, we have invested for 60 years with a dual mandate: generate optimal long-term returns for our 48 depositors, who represent over 6 million Quebecers, and contribute to Québec's economic development.
As a global investment group, we're active in the major financial markets, private equity, infrastructure, real estate and private credit. As at December 31, 2025, La Caisse's net assets totalled CAD 517 billion. For more information, visit lacaisse.com or consult our LinkedIn or Instagram pages.
La Caisse is a registered trademark of Caisse de dépôt et placement du Québec that is protected in Canada and other jurisdictions and licensed for use by its subsidiaries.
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SOURCE La Caisse
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