The business relations between the Caisse and its depositors are defined in a service agreement, which sets out the depositors’ and the Caisse’s responsibilities.
Towards their contributors
Thousands of Québecers contribute financially to one or more funds of our depositors, which in turn entrust these funds to the Caisse to make them grow. Depositors manage relations with their participants; they collect the contributions and pay pension annuities or benefits.
Towards the Caisse
Each depositor establishes its own investment policy, based on its specific needs and goals. This policy describes:
- The depositor's profile and specific features;
- Its financial commitments and cash-flow requirements over the short, medium and long term;
- The types of investments targeted, which make up the benchmark portfolio;
- The expected return on investment;
- Risk constraints and the investment horizon;
- The frequency of meetings with the Caisse.
The Caisse's responsibilities
The Caisse manages the funds entrusted to it in line with each depositor’s investment policy and seeks to ensure an optimal return. To that end, it identifies the most attractive investment opportunities in Québec, in North America and around the world, while considering the risk management.
In addition, as shown in the following table, the Caisse designs and offers new investment products aligned with depositors’ needs, including 17 specialized portfolios divided into four main asset classes:
In addition, the Caisse also offers its depositors custom-tailored solutions to hedge foreign exchange risks and the possibility to adjust the exposure to the investment term through the use of interest rate overlay mechanism. Also, through the Asset Allocation portfolio, the Caisse actively manages depositors’ portfolio weighting, based on market conditions and economic outlook.
The Caisse offers depositors advisory services, including:
- Financial and market analyses and analyses of economic prospects;
- Assistance developing and reviewing investment policies;
- Risk and return forecasts for each investment type;
- Fund allocation simulations for various types of investments aimed at determining the optimal composition of the benchmark portfolio;
- Studies on investment policy trends.
The Caisse ensures full account reporting for each depositor, primarily through:
- A monthly report on the returns and asset allocation;
- A half-yearly results newsletter;
- A half-yearly risk newsletter, explaining the risks associated with the portfolios and the types of investments they comprise;
- A half-yearly customized presentation of the results, facilitating information exchanges on returns and other topics of interest;
- Compliance certificates specifying that the Caisse complies with depositors’ investment policies and the investment policies of the specialized portfolios.
In addition, as required by the Act respecting the Caisse de dépôt et placement du Québec, the Caisse submits to Québec’s National Assembly an annual report on its activities, results and financial statements. All depositors receive a copy of this report.