"The first six months of the year were very difficult," said Charles Émond, Caisse's chief executive officer.
Caisse de dépôt et placement du Quebec is a legal option I am considering. After fully amortizing its $150 million investment in cryptocurrency lending platform Celsius Networks.
"Obviously things did not go as expected," Chief Executive Officer Charles Émond said Wednesday. "No one at Caisse, including myself, was happy with the outcome of this case. This is an exception to our venture capital portfolio."
filed for Chapter 11 bankruptcy following its decision to freeze its accounts. Caisse and Westcap led his US$400 million investment round in Celsius in October.
Émond announced after a press conference that Caisse dedépôtet Placement du Québec posted his 7.9% loss in the first half of the year due to plummeting stock and bond markets. told the group.
Net investment losses of $33.6 billion reduced his net worth to $391.6 billion as of mid-year, Caisse said in a statement Wednesday. The first-half performance still outperformed the Caisse benchmark index, which fell 10.5%.
As the global economy slowed,inflation reached its highest level in 40 years, and central banks in advanced economies began to raise interest rates in earnest, Long-term Canadian government bonds have lost 22% of their value in equity and bond markets since 1969, when the first half of 2022 saw its first simultaneous correction.
"His first six months of the year have been very difficult," Emond said in a statement. “Over the past two years, we have worked in an extreme environment characterized by particularly rapid and marked change. These abnormal and volatile conditions will continue for some time. We will be watching what we do to contain it and how it impacts the economy.Our portfolio remains solid and disciplined to perform well in a variety of market conditions."
Bonds were the worst of Caisse's three major asset classes, recording a 13.1% loss. Stocks, including public and private equity, fell 10.6%, while so-called "real assets" such as infrastructure and real estate rose 7.9%.
UnderEmond, who took over in 2020, Caisse will pursue a strategy focused on asset selection and diversification to help pension fund managers' ability to withstand market downturns. is improving. As part of this drive, Caisse is increasing its exposure to global markets as well as investments in credit and real assets.
This story will be updated.
ftomesco@postmedia.com
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