UPDATE 2-Quebec's Caisse sees weak global growth, eyes UK opportunities
* CEO sees opportunities in UK, Europe from Brexit fallout
* Average return falls to 2 pct in H1 from 5.9 pct last year
* Net assets C$255 bln, up from C$248 bln at end 2015 (Adds CEO comments on Brexit, comparison to benchmark)
By Matt Scuffham
TORONTO, Aug 12 (Reuters) - Caisse de depot et Placement du Quebec, Canada's second-biggest public pension fund, warned of weak global growth in the years ahead after market volatility led to a sharp fall in its investment return in the first half.
The Caisse, which manages pension plans in the mostly French-speaking province of Quebec, said on Friday its average return fell to 2 percent from 5.9 percent in the same period the year before.
The pension fund said the performance was ahead of a 1.3 percent return from the benchmark portfolio against which it measures itself. Net assets grew to C$255 billion ($197 billion) at the end of June, up from C$248 billion at the end of 2015.
The market environment changed significantly over the past year and global economic uncertainty led to more volatility in stock and currency markets, Chief Executive Michael Sabia said in a statement.
"Greater political instability in several parts of the world has added to the fundamental issues - economic rebalancing in China, lower corporate profits in the United States, insufficient reforms in Europe - and points to weak global growth for the years ahead," he said. Continued...