Caisse posts return below its benchmark index

The Caisse generated a return of 9.3 per cent in 2025. President and Chief Executive Officer Charles Emond, photographed at a previous press conference in Montreal on Tuesday, Aug. 12, 2025. (The Canadian Press/Christopher Katsarov)

The Caisse de dépôt et placement du Québec (CDPQ) generated a return of 9.3 per cent in 2025, falling short of the benchmark index it uses for comparison.

That reference portfolio posted a return of 10.9 per cent in 2025, according to results released Wednesday.

Quebecers’ nest egg therefore underperformed its benchmark in most of its asset classes last year.

Public equities, private investments, real estate and infrastructure all posted gains below their respective benchmarks in 2025. Bonds were the exception, outperforming their index.

“Yes, it’s surprising when you look at it,” acknowledged president and CEO Charles Emond at a news conference. “We see that we’re not the only pension plans in this situation.”

“As for the negative added value, I’m not concerned at all,” he continued.

The Caisse must diversify its portfolio to reduce risk and navigate different market cycles, Emond said. “That’s what we’re aiming for so the plans stay healthy every year.”

He pointed to historic investments in energy producers driven by enthusiasm for artificial intelligence — a trend that supported benchmark returns in infrastructure.

By contrast, the Caisse’s portfolio is more diversified to reduce volatility, the CEO explained.

The Caisse has outperformed its benchmark over five- and 10-year horizons. Over five years, the institution posted an annual return of 6.5 per cent, compared with 6.2 per cent for the benchmark. Over 10 years, its annual return reached 7.2 per cent, above the index at 6.9 per cent.

The real estate portfolio continued to lag, posting a 0.2-per-cent return compared with 1.8 per cent for the benchmark.

Emond said the industry “has been in deep transition” for five years. He noted the Caisse has made nearly $50 billion in changes to its portfolio to adapt.

The Caisse has also stopped being a property manager, “a completely different business from being an investor.” Integration of its real estate subsidiary Ivanhoé Cambridge is now complete.

“Now that it’s integrated, 2025 was our first year. What I wanted to see was progress, and we saw it,” said the CEO.

The Caisse’s operating expenses fell in 2025 to 0.21 per cent. That ratio was 0.23 per cent in 2024 and 0.26 per cent in 2023.

As of Dec. 31, 2025, assets under management totalled $517 billion.

This report by The Canadian Press was first published in French on Feb. 25, 2026.