To grow the funds of our
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.
Depositors' responsibilities
Towards their contributors
Thousands of Québecers contribute financially to our depositors, which in turn entrust these funds to the Caisse to make them grow. Depositors manage relations with their participants; they also 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 characteristics;
- 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
Fund management
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, across North America and around the world from a risk governance perspective.
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:
| Asset classes | Investment products |
| Fixed Income | Short-Term Investments * Bonds Long-Term Bonds * Real Estate Debt |
| Inflation-Sensitive Investments | Real Return Bonds * Infrastructure Real Estate |
| Equity | Canadian Equity Global Equity Québec International ** U.S. Equity * EAFE Equity 1* Emerging Markets Equity * Private Equity |
| Other Investments | Hedge Funds Asset Allocation Asset-Backed Term Notes |
** In the process of being closed.
1 EAFE: This acronym designates the Morgan Stanley Capital International Europe, Australasia and Far East index.
In addition, the Caisse also offers its depositors custom-tailored solutions to hedge foreign exchange risks. Through the Asset Allocation portfolio, the Caisse actively manages depositors’ active portfolio allocation, based on market conditions and economic outlook.
Advisory services
The Caisse offers its depositors a wide range of advisory services, including:
- Financial and market analyses and 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.
Reporting
The Caisse ensures full account reporting for each depositor, primarily through:
- A monthly report on the returns and asset allocation;
- A twice-yearly results newsletter;
- A twice-yearly risk newsletter, explaining the risks associated with the portfolios and the types of investments they contain;
- A twice-yearly customized presentation of the results, facilitating information exchanges concerning the returns and other topics of interest;
- Compliance certificates specifying that the Caisse adheres to depositors’ investment policies and the investment policies of the specialized portfolios.
In addition, as required by law, 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.