Canada's second-largest public pension fund, Caisse de Depot et Placement du Quebec (CDPQ), posted its worst financial results since the 2008 crisis.
Net assets value plunged to $297B, caused primarily due to the slump in bonds and public equities. The firm was able to avoid a further decline in financial performance due to its diversified portfolio that has exposure to real estate, infrastructure, and private equity holdings.
Private equity investments saw an uptick of 2.8% in returns.
- The fund cut its exposure to the technology sector while increasing its participation in insurance, pharmaceuticals, and telecommunications.
- CDPQ acknowledged that it "deviated from our venture capital strategy and made the necessary corrections" after it had to write off its entire $150M investment into crypto lender Celsius Network.
- Alexandre Synnett, who led the Celsius investment on behalf of CDPQ, left the pension fund soon after the crypto firm filed for bankruptcy.
- The firm expects to recoup its losses by the time the bonds mature.
