CDPQ reported a 9.4% return on depositors’ funds for 2024, below its benchmark’s 11.8% return. Over five and 10 years, annualized returns were 6.2% and 7.1%, exceeding the benchmark. As of Dec. 31, 2024, CDPQ’s net assets stood at $473 billion.
Managing funds for 48 depositors, primarily pension and insurance plans, CDPQ tailors investment strategies to individual risk tolerances and financial obligations. The Quebec Pension Plan (QPP), its largest fund, posted an 11% return for the year, with net assets of $142 billion.
CDPQ’s investments contributed $40 billion in returns for 2024, with cumulative gains of $116 billion over five years. Returns varied across depositors’ funds, reflecting differences in asset allocation. A customized rate exposure product helped align asset performance with long-term liabilities, stabilizing pension and insurance funding despite sensitivity to interest rate fluctuations. Rising rates in recent years improved depositor plan funding by reducing liabilities.
The company’s equity markets portfolio returned 25.5%, outperforming its benchmark of 24.1%. Private equity rebounded with a 17.2% return, though it lagged the 20.8% benchmark due to lower public market exposure.
Higher bond yields impacted the fixed income portfolio, which returned 1.3%, slightly below its 1.4% benchmark. While private credit yields were strong, rising rates limited performance. The infrastructure segment posted a solid 9.5% return, benefiting from port and energy assets, while real estate struggled, with a -10.8% return, weighed down by US office sector exposure, compared to the benchmark’s 1.0%. Logistics and retail assets showed resilience, the company said.
CDPQ also reduced its cost ratio to 67 cents per $100 of net assets, down from 83 cents in 2023, due to real estate subsidiary integration and lower external management fees. Operating expenses also declined.
Looking ahead, CDPQ remains focused on delivering long-term returns to support pension and insurance plans, balancing risk and market uncertainty while ensuring financial stability for depositors.
