News About Pensions
PublicFor pensions information
CDPQ posts 9.3% return; divestment pressure mounts
Wednesday, Jun 24, 2026
CDPQ’s 2025 results show solid but benchmark-missing returns, with infrastructure and green bonds advancing while real estate losses deepen and a $26. 4B divestment campaign gains union backing.
The tension between CDPQ’s expanding transit and housing investments in Quebec and its exposure to companies tied to human rights violations in Palestine frames a critical governance and reputational challenge for Canada’s largest pension manager.
Tracking: Pensions · Canada Pension Plan · CPPIB · CDPQ · PSP Investments · OMERS · British Columbia Investment Management Corporation · Ontario Teachers' Pension Plan · Alberta Investment Management Corporation · Healthcare of Ontario Pension Plan · Alberta Investment Management Corporation
Geography: Canada
1. CDPQ posts 9.3% return in 2025, net assets reach $517 billion
La Caisse de dépôt et placement du Québec reported a 9. 3% weighted average return for 2025, below its 10.
9% benchmark, as geopolitical tensions and tariff uncertainty weighed on markets. Over five and ten years, however, the fund outperformed its benchmarks, with annualized returns of 6.
5% and 7. 2% respectively.
Net assets grew to $517 billion, generating $43 billion in investment results for the year. The Québec Pension Plan’s base fund, the largest depositor, posted a 9.
8% return and held $163 billion in assets. Strong equity market diversification, particularly outside the U.S., drove performance despite headwinds in private equity.
Key facts:
- CDPQ’s 2025 return was 9.3%, below the benchmark of 10.9%.
- Net assets reached $517 billion as of December 31, 2025.
- Five-year annualized return was 6.5% versus benchmark 6.2%.
- Ten-year annualized return was 7.2% versus benchmark 6.9%.
- Québec Pension Plan base fund returned 9.8% with $163 billion in assets.
Why it matters: CDPQ’s consistent long-term outperformance bolsters the financial health of 48 depositor plans, including the Québec Pension Plan, providing stability for millions of retirees.
The fund’s strong equity diversification and disciplined execution, especially in volatile markets, demonstrate its resilience.
However, the short-term miss against its benchmark highlights the challenge of navigating tariff uncertainty and shifting market leadership away from U.S. stocks. Private equity’s slower growth is a watchpoint for future returns.
2. CDPQ Infra raises $1.85B green bond, plans two new REM stations by 2030
CDPQ Infra, the infrastructure arm of Quebec’s pension fund manager La Caisse, closed a $1. 85 billion green bond issuance for the Réseau express métropolitain (REM) — one of the largest such issuances for a public transit project globally.
The bonds, spanning 5 to 30 years, attracted strong investor demand and secure pricing, signaling the REM is now seen as a stable long-term asset.
Separately, CDPQ Infra launched the planning phase for two new REM stations in Montreal’s Griffintown and Bridge-Bonaventure sectors, with construction expected to begin by 2028 and stations operational by 2030.
Building both simultaneously is more cost-efficient. The stations are a prerequisite for housing development in the Bridge-Bonaventure area, tying transit expansion directly to urban revitalization.
Key facts:
- CDPQ Infra closed a $1.85 billion green bond issuance for the REM.
- The bond ranks among the largest green bond issuances for public transit globally.
- Two new REM stations are planned, with construction starting by 2028 and completion by 2030.
- Building both stations simultaneously is deemed more cost-efficient by CDPQ Infra.
- The Bridge-Bonaventure station is a prerequisite for housing development in that area.
Why it matters: This dual development shows La Caisse leveraging capital markets and transit expansion to generate stable, long-term returns for its depositors while enabling urban growth.
The green bond confirms investor confidence in infrastructure tied to the energy transition. For Montreal, the new stations unlock housing and economic activity in revitalizing neighborhoods.
Moving forward, the final cost and timeline will determine whether this model scales to other Canadian pension fund infrastructure projects.
3. CDPQ logs strong 2024 returns but real estate losses deepen
CDPQ reported a 2024 public equity return of 25. 5%, beating its benchmark, driven by growth and tech stocks linked to AI.
Private equity rebounded to 17. 2%, while infrastructure returned 9.
5% on strong port and energy assets. However, its $41.
8 billion real estate portfolio suffered a 10. 8% loss, worse than 2023, due to exposure to US offices in New York and Chicago.
CDPQ is integrating its real estate subsidiaries Ivanhoé Cambridge and Otéra Capital to save C$100 million annually, while shifting the allocation away from offices toward logistics and residential assets.
Key facts:
- CDPQ public equity returned 25.5% in 2024, above its 24.1% benchmark.
- Real estate lost 10.8% in 2024, worse than the 6.2% loss in 2023.
- Private equity rebounded to 17.2%, recovering from 2023 high-rate impact.
- CDPQ plans to save C$100 million yearly by integrating real estate subsidiaries.
- Investments in Quebec reached $93 billion, nearing a $100 billion 2026 target.
Why it matters: CDPQ's divergent performance shows how Canadian pension funds are navigating rate-sensitive assets: while equities and infrastructure thrive on AI and steady cash flows, legacy office holdings in weak US cities remain a drag.
The real estate overhaul—cutting costs and pivoting to logistics and residential—may offer a template for peers like OMERS and CPPIB facing similar headwinds. The Northvolt writedown signals heightened risk in greenfield industrial bets.
Watch for how tariff uncertainty affects diversified portfolios in 2025, as CEO Charles Emond flagged.
4. CPPIB halves Unite Group stake, loses board seat after six years
The Canada Pension Plan Investment Board (CPP Investments) reduced its stake in UK student housing giant Unite Group from 14. 08% to 7.
06%, triggering the departure of its nominated director Thomas Jackson. The cut came through CPPIB European Student RE Holdings and ended a board seat that was guaranteed under a relationship agreement as long as CPPIB held at least 10%.
Norges Bank Investment Management now holds the largest position in Unite at roughly 8–9%. Jackson, who had served on the board since 2019 after CPPIB’s acquisition of Liberty Living, stepped down with immediate effect.
CPPIB stated it remains supportive of Unite’s strategic priorities.
Key facts:
- CPPIB cut its stake in Unite Group from 14.08% to 7.06%.
- Thomas Jackson resigned as non-executive director effective immediately.
- Jackson had served since 2019 after Unite acquired Liberty Living from CPPIB.
- Norges Bank Investment Management became Unite's top shareholder with ~8–9%.
- The board seat was conditional on CPPIB holding above 10% ownership.
Why it matters: The reduction signals a deliberate portfolio rebalancing by CPPIB, one of Canada’s largest public pension funds, away from a long-held UK student accommodation asset.
Losing board representation means CPPIB cedes direct strategic influence over Unite’s direction — including potential asset sales — while Norges Bank gains a louder voice.
For Canadian observers, this move reflects how major domestic funds continue to adjust their international real estate exposures amid shifting market conditions, though the fund has not signaled a broader retreat from the sector.
5. CDPQ Infra reveals $845M plan to turn Montreal hospital into student residences
On February 6, 2026, CDPQ Infra submitted its final feasibility analysis to the Government of Quebec for converting six heritage buildings of the former Royal Victoria Hospital into a 1,150-bed interuniversity residence.
The 18-month study, mandated by the Société québécoise des infrastructures, concludes the project is technically feasible but requires major heritage interventions costing $845 million—79% of which is for structural and heritage upgrades.
The estimated cost per bed is $735,000, with the residence component accounting for only 21% of total costs.
This analysis gives Quebec a detailed financial and technical roadmap for a project that would restore public access to the site while adding much-needed student housing in Montreal.
CDPQ Infra, the infrastructure arm of pension manager Caisse de dépôt et placement du Québec, conducted the study with a multidisciplinary team and input from university students.
The next step is a government decision on whether to proceed with the investment.
Key facts:
- CDPQ Infra presented the final analysis on February 6, 2026.
- Total estimated project cost is $845 million.
- 79% of costs are for heritage building upgrades ($578,000 per bed).
- The plan would add 1,150 student beds across six buildings.
- Cost per bed is $735,000 overall.
Why it matters: This project represents a major potential infrastructure investment by a CDPQ subsidiary, linking pension fund expertise to public policy goals—in this case, heritage preservation and student housing.
If approved, it would set a precedent for how Canadian pension funds can redevelop complex public assets at scale. The high heritage costs may spark debate about value for money, but the detailed technical groundwork gives decision-makers clarity.
Watch for whether the Quebec government moves forward, as it could signal CDPQ Infra’s future role in similar public-private redevelopments.
6. Coalition and unions demand CDPQ divest $26.4 billion from companies tied to Israel’s actions in Palestine
On June 18, 2026, the Quebec Coalition URGENCE Palestine and Just Peace Advocates released an analysis of CDPQ’s 2025 annual report, showing $26. 4 billion invested in 81 companies deemed complicit in human rights violations in Palestine, or 5.
1% of total assets. The total is down $1 billion from the prior year, but reductions came only from two companies ending complicit activities while investments in military, tech, and travel firms increased.
Labor organizations representing 488,000 workers—whose pension funds (the Quebec Pension Plan and RREGOP) together account for $238. 6 billion, or 46% of CDPQ’s net assets—sent a letter demanding immediate divestment and a transparent oversight process.
The coalition points to a UN report from June 2025 that singled out CDPQ, and notes that CDPQ has touted a $190 million reduction in “exposure in Israel” while holding $26. 4 billion in complicit holdings.
Key facts:
- CDPQ had $26.4 billion invested in 81 complicit companies as of December 31, 2025.
- The total represents 5.1% of CDPQ’s total assets.
- Investments in military companies profiting from Gaza rose 10.7% year-over-year.
- Unions representing 488,000 workers demanded immediate divestment and oversight.
- Combined deposits from the Quebec Pension Plan and RREGOP total $238.6 billion at CDPQ.
Why it matters: The pressure on CDPQ from unions and civil society creates a direct governance test for Canada’s second-largest pension fund. If CDPQ resists, it risks reputational damage and potential withdrawal of deposits from key public-sector pension plans.
The case also sets a precedent for how Canadian institutional investors balance responsible investment commitments with geopolitical exposure, especially after being named in a UN report.
Watch for whether other Canadian pension funds face similar coordinated demands.