(Bloomberg) -- Caisse de Dépôt et Placement du Québec scored a 4.2% return in the first half of the year, as big gains in public and private equities helped the fund overcome losses on real estate and bonds.
Chief Executive Officer Charles Emond cited multiple factors that drove investment results. Stock markets enjoyed a tech-driven boost, while stronger-than-expected economic growth in the U.S. meant that North American bond yields rose — hurting fixed income returns.
Quebec’s public pension manager outperformed the market with 13.6% gain in its equity markets portfolio, above the benchmark of 13.2%. Private equity holdings gained 6.9%.
Discipline is required for the second half of the year, which has “already seen its share of twists and volatility,” Emond said in a statement.
CDPQ’s infrastructure portfolio continued to perform well with a six-month return of 5.3%, beating its benchmark index by 100 basis points.
Real estate remained a drag on returns, however. That group lost 3.6%, reflecting the troubles in the office sector and the pain of higher interest rates.
Total assets under management grew to $452 billion.
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