Caisse de Depot et Placement du Quebec reported a 9.3% return in 2025, growing net assets to C$517 billion ($378 billion). The result fell short of its 10.9% benchmark, reflecting challenges in private equity and currency headwinds.

Private equity delivered just 2.3% returns, weighed down by slower earnings growth and lower valuations in technology and healthcare holdings. In contrast, equity markets surged 17.7%, driven by non-US markets and technology stocks, while infrastructure gained 9.2% and credit returned 9.6%, its strongest relative performance.

Real estate returned only 0.2%, hampered by high financing costs and weakness in China. CEO Charles Emond emphasized diversification as essential amid uncertainty, noting that AI concentration risk warrants caution given its outsized impact on S&P 500 valuations. The fund maintains 40% US exposure with active risk management and currency hedging that protected C$3.6 billion.