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Cision Canada
5 days ago
- Business
- Cision Canada
La Caisse posted a mid-year 2025 return of 4.6% over six months and 7.7% over five years Français
Five-year return beats benchmark portfolio and exceeds depositors' needs Ten-year return of 7.0% also higher than the benchmark portfolio Depositor plans in excellent financial health, reflecting their assets' good performance MONTRÉAL, Aug. 12, 2025 /CNW/ - La Caisse today presented an update of its results as at June 30, 2025. Over six months, the weighted average return on its depositors' funds was 4.6%, above its benchmark portfolio's 4.3%. Over five years, the average annualized return was 7.7%, also outpacing the benchmark portfolio's 6.6%. Over ten years, the average annualized return was 7.0%, also higher than its benchmark portfolio, which stood at 6.4%. As at June 30, 2025, La Caisse's net assets were $496 billion, up $23 billion over six months. "In the first half of the year, tariff issues related to U.S. policy were a major concern. Financial markets were highly volatile, with a correction in April followed by a robust rebound. Despite this overall performance, we must remain vigilant as we have yet to see the full effects of the U.S. administration's measures," said Charles Emond, President and Chief Executive Officer of La Caisse. "Against significant rate increases, stock market concentration and challenges in real estate over the past five years, our portfolio held strong and outperformed its benchmark portfolio. Our depositors' plans, and therefore Quebecers' pensions, are in excellent financial health." Return highlights Equities Equity Markets: Performance powered by Europe, Canada and emerging markets In the first half of the year, global stock markets responded to the back-and-forth on tariffs with volatility, yet recorded gains. The MSCI ACWI Index, which includes both developed and emerging markets, posted a 4.4% return, hampered by the U.S. market, which suffered from uncertainty around the country's economic policy. Indexes from several major regions, including the eurozone, Canada and emerging markets, delivered excellent performance. In this context, the Equity Markets portfolio recorded a 6.0% return, outperforming its benchmark portfolio's 5.5% return. This result was due to all management mandates, with a significant contribution from Canadian and emerging market stocks, as well as timely risk-taking during the slide in early April. Over five years, the annualized return was 13.3%, compared with 12.9% for the index. Drivers of this performance include the increase in exposure to major technology stocks and the contribution of Canadian portfolio companies over the period. Private Equity: Portfolio companies continue to grow despite the market slowdown Over six months, the portfolio turned in a 3.4% return, above its benchmark index, which posted a 2.0% return. The performance is explained by growth in the profitability of portfolio companies, both in Québec and internationally, but that was more moderate in a slowing environment. During the six-month period, the teams pursued their disposition strategy and completed just over $8 billion in materializations, while making new investments of $4 billion. Over five years, the portfolio's annualized return was 16.7%, compared with 15.4% for the benchmark index. Exposure to the technology, finance and industrial sectors was particularly beneficial over the period. Fixed Income: Strong current yield due to high rate environment and credit premiums The first half of the year was characterized by escalating trade tensions and the risk of economic recession in the United States, as well as U.S. yields diverging from the rest of the world. In this context, the Fixed Income asset class generated a 3.9% six-month return, above its benchmark index's 3.0%. The performance is due to a strong current yield of 2.8% and positive execution in government debt, corporate credit and capital solutions activities. Over five years, the asset class posted an annualized return of 0.2%, still largely affected by 2022's major market correction, compared to the index's -0.8%. The quality of all credit activities explains the difference with the index. Infrastructure: Constant return in an unstable geopolitical context Over six months, the Infrastructure portfolio continued to be a pillar of stability for the overall portfolio. The return was 4.5%, buoyed primarily by transportation assets. Its benchmark index was 8.1%, boosted by the public stocks that compose it, which continue to be stimulated by the energy demand driven by artificial intelligence. In an environment that remains competitive due to the asset class's particularly attractive profile, the teams were proactive. They completed nearly $4 billion of acquisitions, primarily abroad, in sectors such as telecommunications, data centres and power transmission. They also made targeted strategic sales to materialize gains and ensure portfolio turnover. Over five years, the annualized return was 11.2%, compared with 9.0% for the index. The portfolio once again benefited from sound asset diversification and its favourable positioning in promising sectors, including renewable and transition energy, ports, highways and telecommunications. In the first half of the year, the portfolio earned a 0.1% return, compared with the 1.2% return of its benchmark. The vast majority of sectors that make up the portfolio saw their values stabilize during the six-month period. Shopping centres and offices posted good current yields after the pandemic shock. However, performance was limited by the impact of the higher-rate environment. Over five years, the annualized return on the portfolio stands at 0.3%, in line with its index at 0.4%, reflecting the cyclical and structural challenges affecting the entire industry in recent years. The difference with the index is mainly due to the portfolio's longstanding concentration in the U.S. office sector, which experienced difficulties over the period. It should be noted that the sectoral repositioning of the real estate portfolio toward sectors of the future, such as logistics, since 2020 was favourable over five years. Impact of currencies on returns In the first half of the year, the portfolio's exposure to foreign currencies adversely impacted overall performance, mainly due to the sharp depreciation of the U.S. dollar. The partial hedging of this currency implemented by the teams, however, offered significant protection, offsetting nearly half of the negative impact. Over five years, foreign currency exposure contributed positively to overall performance, mainly due to the strength of the U.S. dollar over the period and the portfolio's large exposure to it. Québec: Support for local companies and structuring projects as the global economy redefines itself The beginning of the year helped consolidate the positions of some Québec leaders in strategic industries, in addition to continuing to advance structuring projects. Highlights included: Support to grow companies Innergex: Announcement of the acquisition of this renewable energy leader, bringing the enterprise value to $10 billion Norda Stelo: $28 million for an equity stake in this impact engineering leader, following two years as a lender, thereby reinforcing our partnership focused on sustainable innovation Germain Hotels: Leading a financing round for a total of $160 million to accelerate its expansion, and support for the company's succession Synex Business Performance: Equity stake as a minority shareholder and support in the form of debt for this growing company in the Canadian insurance brokerage sector Structuring projects REM: Migration of all operations to Brossard and start of the test period on two new branches (Deux-Montagnes and Anse-à-l'Orme) before the dry run stage at the end of the summer Québec-Toronto high-speed train: The Government of Canada selected the Cadence team, led by CDPQ Infra, as a private partner of Alto, the federal Crown corporation responsible for carrying out this major project for Canadian mobility TramCité: Announcement of consortia qualified for two major contracts as part of requests for expressions of interest led by CDPQ Infra; ultimately, this new 19-km modern tramway network will become the backbone of mobility in the Québec City region Financial reporting Cost management remains a priority for the organization. As such, the integration of the real estate subsidiaries, Ivanhoé Cambridge and Otéra Capital, into La Caisse, continued to benefit from the full potential of a simplified organization and to generate efficiency gains. Note that this integration, which began last year, will conclude in 2026. The synergies achieved already represent annual savings beyond the initial target of $100 million. Information on internal and external investment management costs as at December 31 will be presented in the annual disclosure. The credit rating agencies reaffirmed La Caisse's investment-grade ratings with a stable outlook, namely AAA (DBRS), AAA (S&P), Aaa (Moody's) and AAA (Fitch Ratings). ABOUT LA CAISSE At La Caisse, formerly CDPQ, we have invested for 60 years with a dual mandate: generate optimal long-term returns for our 48 depositors, who represent over 6 million Quebecers, and contribute to Québec's economic development. As a global investment group, we are active in the major financial markets, private equity, infrastructure, real estate and private credit. As at June 30, 2025, La Caisse's net assets totalled CAD 496 billion. For more information, visit or consult our LinkedIn or Instagram pages. La Caisse is a registered trademark of Caisse de dépôt et placement du Québec that is protected in Canada and other jurisdictions and licensed for use by its subsidiaries. SOURCE La Caisse
Business Wire
07-08-2025
- Business
- Business Wire
MSCI Equity Indexes August 2025 Index Review
LONDON--(BUSINESS WIRE)--MSCI Inc. announced the results of the August 2025 Index Review for the MSCI Equity Indexes. All changes will be implemented as of the close of August 26, 2025. Highlights include: MSCI Global Standard Indexes: Forty-two securities will be added to and 56 securities will be deleted from the MSCI ACWI Index. The three largest additions to the MSCI World Index measured by full company market capitalization will be Rocket Lab Corp (USA), SoFi Technologies (USA) and Affirm Holdings A (USA). The three largest additions to the MSCI Emerging Markets Index measured by full company market capitalization will be China CITIC Bank A (HK-C) (China), Dian Swastatika Sentosa (Indonesia) and Laopu Gold H (China). MSCI Global Small Cap Indexes: There will be 194 additions to and 107 deletions from the MSCI ACWI Small Cap Index. MSCI Global Investable Market Indexes: There will be 176 additions to and 103 deletions from the MSCI ACWI Investable Market Index (IMI). MSCI Global All Cap Indexes: There will be 120 additions to and 60 deletions from the MSCI World All Cap Index. MSCI Frontier Markets Indexes: There will be nine additions to and four deletions from the MSCI Frontier Markets Index. The three largest additions to the MSCI Frontier Markets Index measured by full company market capitalization will be FPT Corp (Vietnam), Asyad Shipping Company (Oman) and Société Générale de Banques en Côte d'Ivoire (Ivory Coast). There will be 28 additions to and 11 deletions from the MSCI Frontier Markets Small Cap Index. In light of currently observed market accessibility issues, MSCI will continue to not implement changes as part of this Index Review for any securities classified in Bangladesh for the MSCI Bangladesh Indexes or impacted composite indexes. These changes, along with other changes across MSCI Equity Indexes including the MSCI US Equity Indexes, MSCI US REIT Index, MSCI China A Onshore Indexes and China All Shares Indexes are available on MSCI's "Index Review" web page: -Ends- About MSCI MSCI Inc. (NYSE: MSCI) strengthens global markets by connecting participants across the financial ecosystem with a common language. Our research-based data, analytics and indexes, supported by advanced technology, set standards for global investors and help our clients understand risks and opportunities so they can make better decisions and unlock innovation. We serve asset managers and owners, private-market sponsors and investors, hedge funds, wealth managers, banks, insurers and corporates. 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Yahoo
04-08-2025
- Business
- Yahoo
A Confluence of Catalysts Drove Aristotle Capital's Global Equity Composite to Build a Position in Capital One Financial Corporation (COF)
Aristotle Capital Management, LLC, an investment management firm, released its 'Global Equity Strategy' investor letter for the second quarter of 2025. A copy of the letter can be downloaded here. During the quarter, the global equity market surged, with the MSCI ACWI Index rising 11.53%. Aristotle Capital Global Equity Strategy returned 9.58% gross of fees (9.45% net of fees) in the second quarter, underperforming the MSCI ACWI Index's 11.53% return and the MSCI World Index's 11.47% return. Additionally, you can review the fund's top 5 holdings to see its best picks for 2025. In its second-quarter 2025 investor letter, Aristotle Capital Global Equity Strategy highlighted stocks such as Capital One Financial Corporation (NYSE:COF). Capital One Financial Corporation (NYSE:COF) is a financial services holding company for Capital One, National Association that offers various financial products and services. The one-month return of Capital One Financial Corporation (NYSE:COF) was -6.08%, and its shares gained 52.42% of their value over the last 52 weeks. On August 1, 2025, Capital One Financial Corporation (NYSE:COF) stock closed at $207.47 per share, with a market capitalization of $132.68 billion. Aristotle Capital Global Equity Strategy stated the following regarding Capital One Financial Corporation (NYSE:COF) in its second quarter 2025 investor letter: "Founded in 1988 and headquartered in McLean, Virginia, Capital One Financial Corporation (NYSE:COF) is one of the largest credit card issuers in the U.S. The company was spun out of Signet Financial in 1995 under the leadership of founder and current Chairman and CEO Richard Fairbank. Over the past three decades, Capital One has evolved from a monoline credit card lender into a diversified financial services firm offering a broad range of consumer and commercial banking products. A smiling face of a customer as they make a deposit at this company's branch. Capital One Financial Corporation (NYSE:COF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 93 hedge fund portfolios held Capital One Financial Corporation (NYSE:COF) at the end of the first quarter, which was 89 in the previous quarter. While we acknowledge the potential of Capital One Financial Corporation (NYSE:COF) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Capital One Financial Corporation (NYSE:COF) and shared the list of cheap value stocks to buy according to Warren Buffett. Capital One Financial Corporation (NYSE:COF) was the top contributor to Oakmark Equity and Income Fund's performance during Q2 2025. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
02-08-2025
- Business
- Yahoo
Aristotle Capital's Global Equity Strategy Sold PayPal Holdings (PYPL) for a More Compelling Opportunity
Aristotle Capital Management, LLC, an investment management firm, released its 'Global Equity Strategy' investor letter for the second quarter of 2025. A copy of the letter can be downloaded here. During the quarter, the global equity market surged, with the MSCI ACWI Index rising 11.53%. Aristotle Capital Global Equity Strategy returned 9.58% gross of fees (9.45% net of fees) in the second quarter, underperforming the MSCI ACWI Index's 11.53% return and the MSCI World Index's 11.47% return. Additionally, you can review the fund's top 5 holdings to see its best picks for 2025. In its second-quarter 2025 investor letter, Aristotle Capital Global Equity Strategy highlighted stocks such as PayPal Holdings, Inc. (NASDAQ:PYPL). PayPal Holdings, Inc. (NASDAQ:PYPL) is a technology platform that enables digital payments. The one-month return of PayPal Holdings, Inc. (NASDAQ:PYPL) was -10.22%, and its shares gained 10.94% of their value over the last 52 weeks. On July 31, 2025, PayPal Holdings, Inc. (NASDAQ:PYPL) stock closed at $68.76 per share, with a market capitalization of $65.692 billion. Aristotle Capital Global Equity Strategy stated the following regarding PayPal Holdings, Inc. (NASDAQ:PYPL) in its second quarter 2025 investor letter: "During the quarter, we sold our positions in PayPal Holdings and Rational and invested in Capital One and Uber. We first invested in PayPal Holdings, Inc. (NASDAQ:PYPL), the online and mobile e-commerce payments company, in the third quarter of 2015. Over the past decade, we have admired PayPal's ability to expand its unique and hard-to-replicate dual-sided network, even amid intensifying competition. In 2023, Alex Chriss succeeded Dan Schulman as CEO and refocused the company on profitable growth by enhancing the checkout experience and deepening user engagement, rather than emphasizing top-line expansion. Partnerships with Apple, J.P. Morgan, Amazon and Shopify support this shift, embedding PayPal more deeply across digital commerce ecosystems. Mr. Chriss has also prioritized higher-margin branded checkout while phasing out select Braintree deals that were unprofitable or contributed little to earnings. Braintree primarily serves large enterprise clients—such as Uber, Airbnb and Live Nation—through unbranded, custom-priced processing agreements. While these actions have moderated near-term revenue growth, we view them as a more disciplined and sustainable approach to long-term value creation. That said, we remain concerned about PayPal's continued investment in its 'One Platform' strategy, which includes expanding into offline and omnichannel payments—a direction that has shown limited success to date. While we will continue monitoring Mr. Chriss's progress and the broader payments landscape, we ultimately determined PayPal was the most suitable candidate for sale in order to fund what we believe is a more compelling investment opportunity." A consumer in a cafe paying for goods using a mobile payment app. PayPal Holdings, Inc. (NASDAQ:PYPL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 92 hedge fund portfolios held PayPal Holdings, Inc. (NASDAQ:PYPL) at the end of the first quarter which was 94 in the previous quarter. While we acknowledge the potential of PayPal Holdings, Inc. (NASDAQ:PYPL) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered PayPal Holdings, Inc. (NASDAQ:PYPL) and shared the list of stocks Jim Cramer recently talked about. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
02-07-2025
- Business
- Bloomberg
2025 midyear outlook: Global asset managers
Three keys for 2025: Global asset managers Asset-manager stocks track market despite 12% cut to 2025-26 EPS Asset-manager stock returns have kept pace with the broader market in 2025, despite a 12% cut to 2025-26 EPS estimates tied to April turmoil. Though forecasts have stabilized, they've trailed the wider rebound amid lingering macroeconomic uncertainty, tempering earlier double-digit profit-growth expectations. Valuations have recovered, yet the group still trades at a 50% discount to the broader sector. Asset managers match 7% market return year to date Global large-cap asset managers have performed roughly in line with the broader market's 7% year-to-date return, following a year of outperformance in 2024 that reversed underperformance in 2022-23. Asset-price gains — particularly in equities — remain critical to supporting top- and bottom-line outlooks, with improved organic-growth trends offering an additional lift. Still, sustained optimism hinges on a more stable macroeconomic backdrop. Peers in the BI large-cap asset-manager index rose by a median 26% in 2024, topping the MSCI ACWI's 18% gain, after underperforming by 9 percentage points in 2023. DWS leads year-to-date gains at 25%, while T. Rowe is the weakest with a 16% decline. CI Financial led 2024 performance on a take-private bid, while Franklin trailed amid Western Asset-related strain that emerged in 2H. Markets drive 12% cut to managers' 2025-26 EPS Asset-manager EPS estimates have stabilized since late April, though they've trailed the broader market rebound following sharp cuts amid the earlier equity drawdown. Full-year 2025 and 2026 EPS forecasts are down 12%, with aggregate revenue estimates 6% lower and operating income off 8% year to date. T. Rowe has seen the steepest revenue downgrade (8%), given its equity-heavy exposure, while Franklin shows the largest profit-expectation cut amid unique Wamco-related strain. BlackRock's estimates have held up best, reflecting platform resilience and support from M&A. Among BI-tracked peers, Franklin and AllianceBernstein show the widest positive gap between stock-price change and EPS revisions — lifting multiples — while T. Rowe and Invesco reflectnegative gaps that have compressed valuations. Multiples reclaim 1Q levels, reflect secular pressure The BI large-cap asset-manager peer group's forward P/E has recovered from April lows and now sits slightly above its long-term average, having reclaimed early 1Q when global asset prices were near their peak. At 10.4x, the group trades above its 2023-24 average of 9.6x, aided by market gains and generally supportive organic growth, though volatility surrounding broader macroeconomic uncertainty remains a risk. Still, valuations are well above the 8.9x seen in 2022,when sharp equity and bond declines were a top and bottom-line headwind. The five-year average stands at 9.9x — roughly a 50% discount to the MSCI ACWI Index — a gap that's widened after holding a premium through much of 2010 to mid-2014. The persistent valuation gap reflects fee and margin pressure alongside structural organic-growth headwinds. BlackRock tops manager multiples amid market swings BlackRock's 21x 2025 P/E highlights its leadership in organic growth, profitability and resilience –supporting a premium to its 19x historical average and leading traditional peers. Group valuations appear mostly elevated relative to norms, though fundamentals remain mixed. Franklin (11x) trades the furthest above trend, despite Wamco challenges that are reshaping its franchise. T. Rowe also trades at 11x but sits the furthest below norms, as equity-heavy exposure heightens profit sensitivity to persistent outflows. Invesco's 9x multiple, the lowest among peers, reflects a painful but necessary asset-mix transition that weighs on its earnings power. The group's 11x five-year median still trails the 15x for BI-tracked alternative managers, underscoring divergent growth, fee and margin trajectories. PE-manager multiples reflect core fee growth, exit challenges US private equity manager valuations account for resilient core-fee fundamentals overcoming industry challenges due to market uncertainty. Exit delays weigh on 2025 profit prospects, even as managers express some 2H optimism. Credit operators are faring better, reflecting demand and asset growth, as well as managers less dependent on monetization. Shares fell a median 18% through June 18, yet most P/E multiples recovered from April lows, with the group trading over 19x. Fee growth may persist, while activity and exits are key 2H variables. Brookfield's valuation leads on lack of exit dependence as Ares' holds on its credit operations, along with Blackstone. KKR's and TPG's growth helps. Apollo's multiple was helped by credit business, but insurance's slower growth has weighed. Carlyle's multiple held in 1H, yet trails peers.
