Caisse Reports 9.3% Return in 2025, Underperforming Benchmark

The Caisse de dépôt et placement du Québec (CDPQ) announced a return of 9.3 percent for the year 2025, falling short of its benchmark index, which achieved a return of 10.9 percent. This information was revealed in results published on February 25, 2026. The lower performance was evident across most asset classes, including public equities, private investments, real estate, and infrastructure, all of which reported gains below their respective benchmarks.

In contrast, bonds emerged as the only asset class to outperform its index. At a press conference, CDPQ’s president and CEO, Charles Emond, expressed surprise at the results but noted that many pension plans faced similar challenges. “Yes, it’s surprising when you look at it,” Emond remarked, indicating that the performance was a common issue across the industry.

Emond emphasized the importance of diversifying the Caisse’s portfolio to mitigate risks and adapt to varying market cycles. He stated, “That’s what we’re aiming for so the plans stay healthy every year.” He highlighted that investments in energy sectors, particularly those benefiting from the recent surge in enthusiasm for artificial intelligence, contributed positively to benchmark returns in infrastructure. In contrast, the Caisse’s approach focused on broader diversification to reduce volatility.

Long-Term Performance and Portfolio Adjustments

Despite the recent shortfall, the Caisse has outperformed its benchmark over longer time frames. Over the past five years, the institution recorded an annual return of 6.5 percent, compared to 6.2 percent for the benchmark. This trend continued over ten years, with the Caisse achieving an annual return of 7.2 percent, exceeding the index’s 6.9 percent return.

The real estate sector remains a notable area of concern, with the Caisse’s portfolio yielding only a 0.2 percent return against a benchmark of 1.8 percent. Emond acknowledged that the industry has been undergoing significant transformation over the past five years, prompting the Caisse to make nearly $50 billion in adjustments to its portfolio to better align with market demands.

The transition included a strategic shift away from property management, which Emond described as “a completely different business from being an investor.” The integration of its real estate subsidiary, Ivanhoé Cambridge, has now reached completion, marking 2025 as the first full year of this new structure. “What I wanted to see was progress, and we saw it,” Emond stated regarding this transition.

Operational Efficiency and Asset Management

In addition to the return on investments, the Caisse reported a decrease in operating expenses, which fell to 0.21 percent in 2025, down from 0.23 percent in 2024 and 0.26 percent in 2023. As of December 31, 2025, the Caisse managed assets totaling $517 billion, reflecting its ongoing commitment to financial stability and growth.

The release of this report underscores the Caisse’s challenges in a fluctuating market environment while also highlighting its strategic focus on long-term performance. The leadership’s proactive measures and commitment to adapting the portfolio position the institution for recovery and future growth.