Strongly a mutual fund of the Caisse

Vivement un commun fund de la Caisse

MISE À DAY

It is high time that all Quebecers had the opportunity to benefit from the expertise and performance of the managers of the Caisse de dépôt et placement.  

How? By being able to directly invest a portion of their savings in a mutual fund based on the Caisse's gigantic diversified portfolio. 

In my eyes, it would be enough for François Legault's new government to make a priority so that the project can finally see the light of day. I am convinced that this project would clearly have the support of the leaders of the opposition parties.  

I will be told that the Caisse has no sales network to distribute such a fund to savers and that is not its role.  

Indeed, this is not The Caisse does not handle the retail sale of a Caisse mutual fund.  

WITH ÉPARGNE PLACEMENTS QUÉBEC 

The solution for the retail distribution of units of this fund must quite simply go through Épargne Placements Québec, which is a government corporation already distributing on the retail market a range of savings and retirement products intended for Québec savers. 

The Government of Quebec need only give its approval to Épargne Placements Québec for the Crown corporation to set up such a mutual fund, the objective of which is to ” clone ” the performance of the Caisse.  

Épargne Placements Québec would become a simple depositor of the Caisse, in the same way as any of the institution's 46 current depositors, the largest of which are the Quebec Pension Plan, the Quebec Government Employees Retirement Plan, Quebec, the Retirement Plans Sinking Fund, the CNESST and SAAQ insurance plans, the Generations Fund.  

Incidentally, the size of the fund is not an obstacle in itself: among the Caisse's 46 depositors, there are small pension funds, such as the HEC Pension Plan ($33 million), the Pension Plan for policemen of Longueuil ($34 million ), the École Polytechnique pension plan ($92 million ), etc. 

All this to say that the future Fonds de la Caisse could start with a modest down payment from Épargne Placements Québec.  

THE MECHANICS  

Since the Caisse de dépôt et placement publishes its performance twice a year, on June 30 and December 31, the purchase price of the units of the Fund of the Caisse could thus be revised every six months. As is the case with the shares of the two popular labour-sponsored funds, the Solidarity Fund of the FTQ and the Fondaction of the CSN.  

Thus, like the two labour-sponsored funds, the value of the Fonds de la Caisse would fluctuate with the half-year performance of the portfolio under management.  

And as is the case for labour-sponsored funds and all Caisse depositors, there is no question here of offering a guaranteed return to holders of Fonds de la Caisse shares.  

By investing in the Caisse Fund, investors must be fully aware that their investment will involve a certain degree of risk. As is also the case with mutual fund units.  

ADVANTAGES OF A CAISSE FUND 

With its gigantic, highly diversified portfolio, the Caisse succeeds year after year in earning a very competitive return in the marvelous world of pension funds and large investment funds.  

Not only the portfolio is geographically diversified, but in addition it contains assets in a host of specialized sectors: real estate, infrastructure, stock markets, private placements, bonds, credit, etc.  

As of June 30, 2018, despite the collapse of the financial markets during the first half of the year, the Caisse posted an annualized return of 6.1 % over 5 years and 8.3 % over 10 years.  < /p>

OPPONENTS? 

There is no doubt that the creation of a future Fonds de la Caisse by Épargne Placements Québec could cause discontent among the middle of high finance.  

In an interview given to my colleague Sylvain Larocque on the hypothetical possibility of entrusting his retirement savings to the Caisse, here is the reaction of Richard Guay, former CEO of the Caisse, now professor of finance at UQAM: “&nbsp ;Of course, there would be reactions from the private financial sector, which would say, okay, that's almost unfair competition.”

That the financial community is crying, I m don't care. The free market is for everyone.  

It's 2022!  

It is high time that small Quebec savers could also, like government employees, take advantage of the performance of Caisse managers to directly grow their savings.  

And let me go with the fact that we benefit from the Caisse with the Quebec Pension Plan. The QPP is a universal plan that does not allow us to fully benefit from the Caisse's performance, individually speaking.

Can't wait for a common fund from the Caisse