Annual Activity Report 1998 (CDPQ)

Summary

• Total assets managed exceeded $83 billion at the end of 1998, and the overall return was 10.2%.p.5
• Bonds made up 40.8% of the portfolio and Canadian equities 25.3% at 31 December 1998.p.8
• The Canadian equities portfolio returned 7.6% against -1.6% for the TSE 300.p.9
• The US equities portfolio returned 25.4% in 1998.p.9
• Asset allocation decisions generated profits above $180 million, and investment activities brought in revenues of $6.4 billion.p.10
• Total investments made in 1998 reached $5.2 billion, including $2.8 billion by the participations subsidiaries.p.24
• The mortgage specialized portfolio returned 7.1%.p.10

Key insights

1. For the first time, the Caisse could raise its equity holdings beyond the 40% limit.p.5
2. The Caisse and its subsidiaries have 47 chartered financial analysts (CFA), the largest concentration in Canada.p.6
3. The value of public-market corporate bonds in the portfolio reached $2 billion, against $1.2 billion in 1997.p.15
4. The euro zone accounted for about 5% of all the Caisse's investments.p.18
5. The Caisse operates in more than 40 countries across five continents.p.4
6. Ivanhoé acquired a portfolio of six shopping centres in the United States as part of $881 million of US acquisitions.p.27