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Or sign-in if you have an account.La Caisse’s stock portfolio recorded a 14.6 per cent return, its “best combination of returns and value-added for a half-year period in 20 years." Photo by Christinne Muschi/BloombergCaisse de Depot et Placement du Quebec, Canada’s second-largest pension manager, fell short of its benchmark in the first half of the year as losses on private equity holdings pulled down the overall return.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorNet assets rose to $552 billion for the Montreal-based firm, which handles pension money and other capital on behalf of the Quebec government. Its average return was 5.1 per cent over the past six months, below the 7.5 per cent for its tracking index, in an environment marked by geopolitical tension in the Middle East and enthusiasm for artificial intelligence investments.Over a 10-year period, La Caisse has returned 7.5 per cent a year, nearly matching its benchmark.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againChief executive Charles Emond said the conflict in Iran, its impact on inflation and interest rates, and the sustainability of the AI investment cycle are sources of uncertainty for the second half.“The enthusiasm surrounding AI is based on expectations — which are already very high — regarding both demand and the profitability of investments that have already been made,” Emond said during a press conference. “So we’re in a situation where risks are multiplying, yet we’re also seeing record inflows from investors being deployed into risky assets.”La Caisse’s stock portfolio recorded a 14.6 per cent return, its “best combination of returns and value-added for a half-year period in 20 years, thanks to favourable positioning in global technology sectors,” La Caisse said in a statement. It noted the market is being driven by an “exceptionally high” concentration of performance from a small group of AI-related stocks.But private equity went in the opposite direction, down 4.3 per cent, as holdings in technology, insurance and financial services saw their valuations crunched because they’re seen as more vulnerable to AI adoption, the money manager said.The fixed income portfolio increased by 1.7 per cent as rising United States long-term yields partly limited gains. Premiums on private credit were “favourable,” especially in real estate and infrastructure.Real assets returned 5.5 per cent, with positive results from both infrastructure, such as energy transmission and highways, and real estate. Office properties and shopping centres are recovering from the damage done during the COVID pandemic.La Caisse said its depositors need an average return of six per cent to meet their long-term obligations. 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