Equity Markets

Liquidity and Long-Term Returns

Securities listed on a stock exchange are known for their high liquidity and their potential for long-term returns that are above those of fixed-income securities.

The Caisse’s stock market portfolio represents $46.4 billion or 35.4% of net assets as at December 31, 2009.  In geographical terms, it is broken down into four major markets: canadian market; U.S. market; Foreign markets (Europe and Asia-Pacific); Emerging markets.

In addition, each of these markets is divided so as to cover all the sectors of the economy.

Portfolio Breakdown – Equity Markets
(for periods ended December 31, 2009)

Under their equity market approach, the Caisse’s portfolio managers emphasize:

• An approach based on fundamental research and earnings outlook over the long term;
• Inefficient markets where they have a competitive hedge (size of assets, investment horizon, etc.);
• A bottom-up approach (security selection over sector selection);
• A dynamic and balanced management of risk and return.

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Additional Information
Fixed-income securities
Private equity
Real estate
Equity Markets Team