MONTREAL – The Caisse de dépôt et placement du Québec posted a return of 4.6 per cent in the first six months of the year, but its executives set the stage Tuesday for more uncertainty in the months ahead.
The Caisse outperformed its benchmark index, which rose 4.3 per cent, according to its mid-year financial results. Over five years, the investment fund’s average return was 7.7 per cent, compared with 6.6 per cent for its benchmark index.
Despite positive returns, president and CEO Charles Emond stressed the environment remains uncertain for investors.
“I would say that there are more downside risks than upside risks,” Emond warned at a press conference on Tuesday to discuss the fund’s mid-year results.
“That calls for caution in this environment.”
The effects of U.S. President Donald Trump’s protectionist policies have not yet been fully felt, he said.
Emond said that U.S. tariffs would slow down the U.S. economy while increasing prices. The Federal Reserve could find itself faced with a dilemma between cutting rates to stimulate the economy or raising them to counter inflation.
The first half of the year has not been easy for investors. Trade tensions between the U.S. and its main trading partners have caused turmoil on the stock markets. “April was the seventh most volatile month in history,” said Vincent Delisle, executive vice-president and head of liquid markets.
The Caisse outperformed its benchmark index for equities and fixed income. However, its real estate portfolio continues to lag behind, with a return of 0.1 per cent over six months, compared with 1.2 per cent for the benchmark index. Over five years, the portfolio is flat, with an annual return of 0.3 per cent, slightly below the index at 0.4 per cent.
The Caisse suffered from its concentration in certain office markets in the United States, where remote working is more common than in Europe.
Emond defended 2025 as a “transition” year.
“We are still seeing employers wanting to bring their employees back,” he said.
“So that’s encouraging. We’re also seeing occupancy rates improving in New York, among other places.”
The Caisse’s net assets grew by $23 billion in the first six months of the year to $496 billion.
This report by The Canadian Press was first published Aug. 12, 2025.
