Canadian pension fund giant Caisse de dépôt et placement du Québec posted a 13.5-per-cent, benchmark-beating return in 2021 – but the path forward is complicated by Russia’s invasion of Ukraine, Caisse chief executive officer Charles Emond said Thursday.
The economic effects “will be felt for a longer period than even the conflict itself,” Mr. Emond said, citing the inflationary risks to commodities such as oil, combined with the potential dampening of global economic growth.
Caisse spokesperson Kate Monfette told The Globe and Mail on Wednesday before the invasion that the pension fund recently sold hundreds of millions of dollars in stock of seven Russian banks and energy companies that Canada placed sanctions on in 2015.
Russia’s action distracts from a banner 2021, in which the Caisse turned around its real estate returns, negative in the preceding two calendar years.
In its 2021 financial report released on Thursday, the Caisse said its benchmark – the return of a similar portfolio constructed for comparative purposes – was 10.7 per cent in 2021. The spread between the return and the benchmark was the best since 2010, the Caisse said, thanks to strong performances across all portfolios, particularly infrastructure and private equity.
The Caisse ended 2021 with $419.8-billion in assets, making it Canada’s second-largest public-pension investment manager, behind Canada Pension Plan Investment Board. It said $78-billion of its assets are in Quebec.
The annualized returns over five and 10 years were 8.9 per cent and 9.6 per cent respectively, which also outperformed the benchmark portfolio, the Caisse said.
The full-year 2021 showed a 12.4-per-cent return for its Ivanhoé Cambridge property unit. Since early 2020, when the Caisse pledged to sell off a chunk of its shopping-mall portfolio, the pension manager has plowed money into logistics and warehousing, life-sciences-related real estate and select residential projects.
Over the past year, Ivanhoé Cambridge completed more than 100 transactions worth a total of $18.8-billion – $11.9-billion in investments and $6.9-billion in disposals.
“Just to give you a sense, in the 18 months in real estate, we did 170 transactions, and the sectors that we like – industrial logistics and residential – went from 28 per cent to 42 per cent [of the portfolio],” Mr. Emond said in an interview. “The stuff we didn’t like – shopping malls and traditional office – went from 45 per cent to 31 per cent. So we have really repositioned that 180 degrees, and while there’s still work to be done, I’m quite pleased where we are. We’ve broken the back of it for sure.”
Logistics investments included $600-million in Quebec and Ontario via Pure Industrial Real Estate Trust, a venture Caisse co-owns with Blackstone Inc.; nearly $300-million in Moorebank Logistics Park, a large intermodal logistics complex in Australia; and a partnership with URBZ Capital that aims to deploy €400-million in Northern Europe, starting with the acquisition of eight assets in the Netherlands.
Mr. Emond said the Caisse’s business will have a number of challenges in the year ahead. These include climbing interest rates, rising inflation and the energy transition, which is creating “ferocious competition” for assets, he said.
Russia’s invasion of Ukraine will also complicate things for political and business decision makers, he said.
“This conflict will exacerbate an already challenging situation,” Mr. Emond said. He added that the effects will include higher prices for oil and natural gas, as Russia and Ukraine are major exporters of commodities and other products.
“We may see an acceleration of inflation with the rise in natural gases and and rising oil price,” he said. “This is probably going to create further downward pressure on global growth. And so raising rates in that environment is very tricky for the central banks … if inflation keeps staying there, but growth comes down, everything gets more complicated for everybody.”
On Thursday, Mr. Emond said the Caisse is also working with its outside fund managers to extract Russian equities from global indexes in which it is invested.
The giant Quebec pension fund manager held the shares in the Russian companies when Canada placed them on lists in its Special Economic Measures (Russia) Regulations, developed after Russia invaded the Crimea in Ukraine in 2014.
The regulations prohibited business dealings with individuals and some companies on the list, and banned debt or equity financings of others, including the Caisse holdings. The financing regulations didn’t apply to ownership before the companies were added to the list, meaning the Caisse was free to continue holding its stakes in the Russian companies – which it did through at least the end of 2020, Caisse holdings records indicate. The Caisse would not disclose when it sold the shares.
In its financial report on Thursday, the Caisse said its equity markets portfolio – stocks that trade on public exchanges – gained 16.2 per cent, compared to 16.1 per cent for its benchmark index.
The Caisse’s private equity portfolio posted a 39.2-per-cent return, above the 32.1-per-cent return for its benchmark. The Caisse cited “good positioning in the technology, finance, health care and consumer sectors.”
Fixed income, which accounts for about 30 per cent of the Caisse’s total investments, posted a return of minus 0.6 per cent compared with minus 1.2 per centfor its benchmark.
Its real assets portfolio, which includes real estate and infrastructure and accounts for about 20 per cent of the Caisse’s total portfolio, posted a six-month return of 13.6 per cent, compared with 8.7 per cent for the benchmark index.
The infrastructure portion of real assets reported a 14.5-per-cent return for 2021 – its best in 10 years, the Caisse said – compared to 11.4 per cent for its benchmark index.
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MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
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