Bank of Canada sees limited risk to Caisse pensions

Thu Mar 5, 2009 11:07am EST
 
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OTTAWA (Reuters) - The Bank of Canada expects Canada's biggest pension fund manager, Caisse de depot et placement du Quebec, to recover some of its losses over the long term as stock markets recover.

"The point is that over time, some recovery in the stock market would be expected so it's not clear that these losses per se are necessarily putting pensions at risk because the pensions have a long horizon to recover some of these losses," Pierre Duguay, deputy governor at the central bank, told the House of Commons finance committee.

The Caisse, an arm's length agency that manages investments for various public and private pension plans in the province of Quebec, reported last month a massive C$39.8 billion ($31.1 billion) loss for 2008.

($1=$1.28 Canadian)

(Reporting by Louise Egan; editing by Peter Galloway)