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Returns on Pension Plan Funds in 2008
For Canadian institutional investors in 2008, financial markets were characterized mainly by:
- the spreading of the confidence and liquidity crisis the securitized residential mortgage market to every financial market on the planet;
- intense pressure on banking systems;
- historical corrections of stock exchanges;
- the significant decline in the price of raw materials and the Canadian dollar;
- the overall degradation of the global economy.
Summary of the returns generated in 2008 by public sector pension plan funds administered by the Caisse de dépôt et placement du Québec
The Caisse de dépôt et placement du Québec administers the four following funds:
- The Government and Public Employees Retirement Plan (RREGOP) Fund;
- The Pension Plan of Management Personnel (PPMP) Fund;
- The Pension Plan of Elected Municipal Officers (PPEMO) Fund;
- The Special Plans Fund.
The management of the RREGOP, the PPMP and the PPEMO funds is supervised by a pension committee specific to each fund. Management of the special plans fund, which mainly contains the assets of the Pension plan for federal employees transferred to employment with the gouvernement du Québec (PPFEQ), is supervised by CARRA.
An investment policy adopted jointly by the pension committee and the Caisse de dépôt et placement du Québec to define targets for the returns and limits for the risks controls the managament of each of those funds. In order to meet those objectives, assets are distributed among at least 12 different categories: Bonds, Canadian and Foreign Equity, Private Equity, Infrastructures and Real Estate.
The choice of asset categories and the proportion of assets in each category explain the annual return difference that can be observed between the four funds.
The evolution of assets, the return for 2008 and the average returns for the last four, five and ten years, respectively for each fund, are shown below. Please note that this information includes the additional liability reserves for losses incurred in 2008 by the Caisse de dépôt et placement du Québec with respect to the third party asset-backed commercial papers (ABCP) it holds.
The RREGOP Fund
Additional information: Special Newsletter 
On the basis of the market value, the RREGOP fund's assets decreased from 46.1 billion dollars as at December 31, 2007 to 33.8 billion dollars as at December 31, 2008.
RREGOP Fund — Rates of Return
2008
(1 year) | 2005 to 2008
(4 years | 2004 to 2008
(5 years) | 1999 to 2008
(10 years) |
|---|
| -25,7 % | 0,4 % | 2,6 % | 3,5 % |
The PPMP Fund
Additional information: Special Newsletter
On the basis of the market value, the PPMP fund's assets decreased from 7.7 billion dollars as at December 31, 2007 to 6.0 billion dollars as at December 31, 2008.
PPMP Fund — Rates of Return
2008
(1 year) | 2005 to 2008
(4 years | 2004 to 2008
(5 years) | 1999 to 2008
(10 years) |
|---|
| -24,1 % | 1,1 % | 3,2 % | 3,7 % |
The PPEMO Fund
On the basis of the market value, the PPEMO fund's assets went from 172.8 million dollars as at December 31, 2007 to 128.2 million dollars as at December 31, 2008.
PPEMO Fund — Rates of Return
2008
(1 year) | 2005 to 2008
(4 years | 2004 to 2008
(5 years) | 1999 to 2008
(10 years) |
|---|
| -25,3 % | 1,1 % | 3,2 % | 3,9 % |
The Special Plans Fund
On the basis of the market value, the special plans fund's assets went from 273.6 million dollars as at December 31, 2007 to 202.1 million dollars as at December 31, 2008.
Special Plans Fund — Rates of Return
2008
(1 year) | 2005 to 2008
(4 years | 2004 to 2008
(5 years) | 1999 to 2008
(10 years) |
|---|
| -24,6 % | 1,1 % | 3,2 % | 3,7 % |
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