Caisse widens global investment scope amid economic shift
The centre of gravity of the world's economy is shifting, and companies that recognise this emerging paradigm stand to gain the most. As one of the two big motors of growth, China is playing an increasingly important global role, and the Caisse de depot et placement du Quebec, already strategically perched in Beijing, intends to have more feet on the ground.
The centre of gravity of the world's economy is shifting, and companies that recognise this emerging paradigm stand to gain the most. As one of the two big motors of growth, China is playing an increasingly important global role, and the Caisse de depot et placement du Quebec, already strategically perched in Beijing, intends to have more feet on the ground.
"What China does is going to affect how the world economy operates," says Michael Sabia, the Caisse's president and CEO. "It could become the largest economy in the world, so whether you invest in China or not, it makes sense to have at least some understanding of the country."
In terms of the big drivers of economic growth in the world, Sabia sees two poles. One is the United States, where he continues to be quite optimistic about growth prospects, and the other one is Asia, principally China. As a global fund manager, the Caisse has offices in New York and Beijing.
One of the largest institutional fund managers in North America, the Caisse works closely with its 29 depositors, managing their funds and providing investment consulting. The Canadian firm holds a diversified portfolio that includes publicly listed shares, real estate investments, fixed-income securities and private equity. It manages just under
US$200 billion in institutional funds - among the largest in the world - primarily from public and private pension and insurance funds in Quebec. For its financial soundness, the Caisse has earned the best credit ratings from Moody's Investors Service, Standard & Poor's and Dominion Bond Rating Service.
Unlike US pension funds, the Caisse manages more than 80 per cent of its assets internally, farming out only some to external managers. It is one of a few companies that offer long-term capital in the market through teams running fixed income, public equities, private equities, infrastructure and other asset classes. With a sustained expansion plan, the company has invested 55 per cent of its assets in Canada with the rest invested around the world.
