The Caisse de dépôt et placement du Québec has introduced changes to its investment model to address new market trends. They include consolidation of Caisse investments in public and private companies under CIO Roland Lescure. Additionally, infrastructure investment activity will be grouped under the recently established CDPQ Infra. Caisse President and CEO Michael Sabia said the reorganization will support the selection of high-quality assets and a greater focus on the operations of portfolio companies. It will also better align investment decisions with the Caisse’s long-term goals.
La Caisse adjusts its organizational model to better deliver its investment strategy and meet the needs of its depositors
MONTRÉAL, April 18, 2016 /CNW Telbec/ – Caisse de dépôt et placement du Québec is adjusting its organizational model to deliver its investment strategies more effectively and better serve its depositors. Implemented in 2009, this strategy aims to build a resilient portfolio that creates sustainable value beyond market fluctuations.
“Over the years to come, we will be dealing with an increasingly complex environment, anemic growth, heightened volatility and more modest returns. In this context, selecting high-quality assets and focusing on the operations of our portfolio companies will be more critical than ever. We will also have to manage our top-down asset-allocation decision-making in a manner more closely integrated with our depositors’ liabilities,” said Michael Sabia, President and Chief Executive Officer of la Caisse.
With this in mind, la Caisse will be adjusting its organizational model as follows:
consolidate investments in public and private companies under the leadership of the Chief Investment Officer;
unite all top-down activities related to the overall portfolio and related research into a new division, Depositors and Total Portfolio Construction
regroup all infrastructure investment activities and operations under its newly-created subsidiary, CDPQ Infra.
Consolidate investments in public and private companies under the leadership of the Chief Investment Officer
To facilitate the implementation of coordinated strategies within the different investment portfolios, the team dedicated to Private Equity outside Québec will now report to Chief Investment Officer Roland Lescure. Consolidating the majority of investment activities in public and private companies will allow for a better utilization of sector expertise across a wider range of asset classes. Consistent with our investment strategy, it will also build a centre of excellence for asset selection. Mr. Lescure also retains responsibility for fixed income investments. In addition, in collaboration with the Chief Risk Officer, he will continue to co-chair the Investment-Risk Committee, which defines la Caisse’s investment strategies, monitors their execution and approves CDPQ’s most important investments.
Responsibilities of the Executive Vice-Presidents responsible for Québec and for Growth Markets remain unchanged.
Unite all top-down activities in connection with the overall portfolio, related research and advisory services to depositors within a new division, Depositors and Total Portfolio Construction
La Caisse continually seeks to enhance its portfolio offering and the advisory services it provides to its depositors, to help them meet the challenges of a complex economic and financial environment. La Caisse therefore is creating a new division, Depositors and Total Portfolio Construction. By regrouping these activities together under the leadership of Jean Michel, la Caisse will be able to build its overall portfolio with a broader perspective, have a more integrated approach to managing the asset allocation process and enhance its advisory services to depositors.
Regroup all infrastructure investment activities and operations under its CDPQ Infra subsidiary
To further grow its infrastructure investment activities, a pillar of its strategy, la Caisse has two priorities: invest more intensively in the sector and build its operational expertise as owner-operator of major infrastructure projects, here in Québec and elsewhere in the world, such as the public transportation projects it is proposing for Montréal.
To achieve these objectives, and drawing on the success of Ivanhoé Cambridge, la Caisse has decided to consolidate its investment activities and its operating capabilities under its new subsidiary, CDPQ Infra, which will be led by Macky Tall, who is appointed Executive Vice-President of la Caisse and President and Chief Executive Officer of CDPQ Infra. He will become a member of la Caisse’s Executive Committee and the Investment-Risk Committee
It is critically important to ensure that we are equipped with strong operations management and effective IT systems to effectively address the challenges involved in globalizing la Caisse.
In order to recognize the key role he plays in the organization and the quality of the work he has accomplished over the past six years, Pierre Miron, who has served until now as Executive Vice-President, Operations and Information Technology, is appointed Chief Operations and IT Officer.
ABOUT CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC
Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at December 31, 2015, it held $248.0 billion in net assets. As one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure and real estate. For more information, visit cdpq.com, follow us on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages.
For further information: Maxime Chagnon, Senior Director, Media and Public Relations, +1 514 847 5493, firstname.lastname@example.org
Photo courtesy of Reuters/Christinne Muschi