La Caisse de Depot et Placement du Quebec, Canada’s second‑largest pension manager, posted a 5.1% average return over the first six months, below its tracking index of 7.5%. Net assets rose to C$552 billion as the Montreal‑based firm manages pension money and other capital on behalf of the Quebec government.

Losses on private‑equity holdings pulled the overall performance down, leaving the Caisse’s return short of its benchmark bright. The firm’s portfolio was impacted by a mix of geopolitical tension in the Middle East and rising enthusiasm for artificial‑intelligence investments, creating a challenging market environment.

The disparity between the Caisse’s 5.1% return and the benchmark’s 7.5% illustrates the difficulties pension funds face in balancing risk and return amid volatile markets. It underscores the need for careful asset‑allocation strategies in uncertain economic times.