UPDATE 1-Quebec pension fund says must raise 'game' to maintain returns

Fri Aug 14, 2015 1:33pm EDT
 
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(Adds comparable yields from 2014; quotes)

By Allison Lampert

MONTREAL Aug 14 (Reuters) - Caisse de depot et placement du Quebec, Canada's second-largest pension fund manager, said it will have to raise its "game" if it is to continue to deliver yields like the weighted average return of 5.9 percent it reported Friday for the first half of 2015.

The Caisse, which manages public pension plans in the predominantly French-speaking province of Quebec, has said it is counting on yields from its infrastructure and real estate divisions to carry the load given expected slower global economic growth and weaker returns from equity markets.

Its four-year average annual return has been 10.2 percent.

For the first half of 2014, the Caisse reported a four-year annualized return of 11.1 percent and a six-month return of 6.7 percent.

"Like all investors, the Caisse has certainly benefited from bull markets that have been fueled by stimulative monetary policies," Chief Executive Michael Sabia said in a news release.

"Continuing to do well will be even more challenging in the months and years to come," he added. "It's not time to go to the beach. It's time to double down and raise our game."

The Caisse reported net assets of C$240 billion ($184.12 billion) as of June 30, compared with C$225.9 billion at the end of 2014.

($1=$1.3035 Canadian) (Reporting By Allison Lampert; Editing by Peter Galloway and Alan Crosby)