• The first half of the year was marked by the conflict in the Middle East and strong enthusiasm for artificial intelligence
• La Caisse's equity markets and infrastructure activities stood out during this volatile period
• This performance translates into $26 billion in gains over six months
• The overall return remains above depositors' long-term needs and their plans are in excellent financial health
• The negative value added mainly stems from stock markets continuing to outperform private assets, limiting gains for a diversified portfolio

MONTRÉAL, Aug. 13, 2026 /CNW/ -- La Caisse presented today an update to its results as at June 30. Over six months, the average return on depositors' funds was 5.1%, below its index's 7.5%. The weighted average annualized return stood at 6.4% over five years and 7.5% over ten years, compared with a benchmark portfolio that posted returns of 6.8% and 7.6%, respectively. The benchmark portfolio recorded higher returns partly due to the extended superior performance of stock indexes compared with private assets. It should be noted that depositors have determined that they need an average return of 6% to meet their obligations over the long term. Net assets now total $552 billion.

"The first half of the year was dominated by two major trends: excitement for AI and the geopolitical tensions in the Middle East. In Equity Markets, our teams outperformed in the context of a strong rally driven by AI. Meanwhile, our Private Equity portfolio was affected by AI's impact on certain industries, such as insurance and services. Despite inflationary pressures, our Infrastructure portfolio once again was distinguished by outstanding performance," said Charles Emond, President and Chief Executive Officer of La Caisse. "Over the long term, our well-diversified overall portfolio continues to demonstrate an ability to navigate various market conditions, delivering less volatile returns and a well-managed risk level for our depositors."

Return Highlights

Returns by asset class

A chart is available on La Caisse's website

EQUITIES
Equity Markets: Portfolio Outperforms in a Bullish, Concentrated and Volatile Environment

The first half of the year was marked by strong global stock market performance, particularly in emerging markets, despite the volatility caused by geopolitical tensions in the Middle East. The market rally was once again largely due to a small group of AI-related stocks, which are benefiting from an unprecedented investment cycle in data centres. This concentration of performance in major stock market indexes remains exceptionally high by historical standards. Over six months, the portfolio posted its best combination of returns and value added for a half-year period in 20 years, thanks to favourable positioning in global technology sectors. The return was 14.6% over six months, above the benchmark index's 13.6% return.

Over five years, the portfolio's annualized return was 13.0%, in line with its benchmark index. The portfolio's transformation during the period, in particular to gain more exposure to growth stocks and incorporate systematic management strategies, generated a significant shift in performance.

Private Equity: Industry and Portfolio Still Under Pressure

The private equity industry continued to face challenging market conditions: a decline in transaction volume, a limited number of IPOs and interest rates that continue to rise. The portfolio also experienced a decline in valuation multiples for certain companies operating in industries seen as more vulnerable to the increasing adoption of AI, such as technology, insurance and financial services. In this environment, the portfolio posted a six-month return of -4.3%. In contrast, its benchmark index, half of which is made up of public stocks benefiting from the opposite reality amid the enthusiasm surrounding artificial intelligence, posted a return of 8.0%.

The five-year annualized return was 7.9%, driven by growth in the profitability of portfolio companies, which are managed both directly and through external funds. This performance resulted in nearly $30 billion of gains, making the portfolio one of the main contributors to the overall results for the period. The benchmark index stood at 12.9%. A decline in performance by a handful of portfolio companies and the stronger showing by the stock market indexes, which make up half of the benchmark index, explain the difference in returns.

FIXED INCOME
Current Yield Gains Partly Limited by Higher Long-Term U.S. Bonds Yields

In the United States, in an environment where the economy has been resilient against geopolitical tensions, rising energy prices and inflationary pressures, long-term bond yields ended the first half of the year higher. In Canada, better-controlled inflation and a more modest growth outlook led to a slight easing of long-term bond yields over the same period. In this context, the Fixed Income asset class, primarily made up of the Credit and Rates portfolios, generated a 1.7% six-month return, above its benchmark index of 1.1%. It benefited from a stable current yield of 2.1% and positive execution, particularly in Government Debt, which stood out due to its strategic exposure to emerging markets. Premiums earned on private credit were also favourable, particularly in the Real Estate Finance and Infrastructure Financing segments.

Over five years, the asset class posted an annualized return of 0.4%, still recovering from 2022's major bond market correction. However, it continues to outperform its benchmark, which stood at -0.5%, due to the strong performance of all public and private credit activities, including the quality of the selection in Government Debt and Corporate Credit.

REAL ASSETS

Infrastructure: Continued Strong Performance 

Over six months, the Infrastructure portfolio continued to be a performance driver for the overall portfolio, with a solid 7.2% return. Growth in profits from our assets in the energy transmission, highway, and public-private partnership sectors were among the major contributors. Its benchmark index, comprised solely of public stocks, sits at 12.7%, boosted mainly by growing stock market values rather than by rising profitability of the companies in the index.

Over five years, the portfolio demonstrated its resilience across varied market conditions, delivering an 11.5% annualized return. The sound geographical and sectoral diversification of the assets, including favourable exposure to the energy and transportation sectors, as well as an attractive current yield of 5.2%, explain the excellent performance. The portfolio outperformed its index, which stood at 10.2% for the period.

Real Estate: Portfolio Continues Positive Trajectory, Industry Under Strain

For the first six months of the year, the portfolio posted a 2.7% return, compared with 3.2% for its benchmark index. The portfolio transformation plan to shift from an operator to an investor model is progressing well. Following years of challenges, values are stabilizing and the majority of sectors in the portfolio are showing positive performance, reflecting a gradual market recovery, including in the office and shopping centre segments. The difference from the index is due in particular to the underperformance of life sciences funds over the period.

Over five years, the portfolio's annualized return was 0.9%, despite favourable performance in the logistics sector. Headwinds in the office sector—to which the portfolio has historically been overexposed in the United States—continued to weigh on returns over the period. The benchmark index stood at 2.2%.

Québec: Strategic Investments in Core Sectors Making a Difference for Building the Economy of Tomorrow

In the first half of the year, La Caisse continued to support the growth of Québec companies in sectors that are strategic to Québec's economy, such as artificial intelligence and disruptive technologies, in addition to renewable energy, while advancing several major infrastructure projects that are redefining communities and mobility in Québec.

Supporting companies' growth

• Boralex: Announcement of the joint acquisition of the company, bringing its enterprise value to approximately $9 billion, to support its growth as an independent private entity, thereby doubling La Caisse's stake to 30%
• Cologix: $240 million in senior financing for the MTL8 data centre, located in Montréal's Technoparc and designed to meet AI-related needs
• nesto: Participation, alongside partners, in a $302-million Series E funding round to support the growth of this tech unicorn in the mortgage sector
• Innovair Solutions: $150 million to support the growth of this leader in heating, ventilation, and air conditioning solutions, while maintaining its roots and ownership in Québec
• Novisto: Equity investment in the company and a partnership to equip organizations in their sustainability transition

Structuring projects for communities and mobility

• A25 Concession: $280 million to acquire Transurban's remaining stake, bringing La Caisse's ownership to 100%
• REM: Commissioning the Anse-à-l'Orme branch of the network, which now operates across
  23 stations and 64 km of track; announcement of two additional stations in the Sud-Ouest Borough; and issuance of a $1.85-billion green bond, one of the largest ever issued on the Canadian market
• TramCité: Announcement of the preferred consortia (Tram Alliance and Québec Connexion Capitale) for the awarding of the civil engineering and systems contracts
• Québec City–Toronto Alto high-speed train: The Cadence team, led by CDPQ Infra, issued a pre-bid notice for the Canadian high-speed rail network

Financial Reporting
The credit rating agencies reaffirmed La Caisse's investment-grade ratings with a stable outlook, namely AAA (DBRS), AAA (S&P), Aaa (Moody's) and AAA (Fitch Ratings). Information on internal and external investment management costs as at December 31 will be presented in the annual disclosure.

ABOUT LA CAISSE

La Caisse has invested for over 60 years with a dual mandate: generate optimal long-term returns for its 48 depositors, who represent over 6 million Quebecers, and contribute to Québec's economic development.

As a global investment group, La Caisse is active in the major financial markets, private equity, infrastructure, real estate and private credit. As at June 30, 2026, it held CAD 552 billion in net assets. For more information, visit LaCaisse.com, LinkedIn or Instagram.

La Caisse is a registered trademark of Caisse de dépôt et placement du Québec that is protected in Canada and other jurisdictions and licensed for use by its subsidiaries. 

For more information
MEDIA RELATIONS TEAM
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SOURCE La Caisse