Clients of the Caisse de dépôt et placement du Québec are concerned about their independence due to the mandate for the structuring network in the capital. The Legault government and CDPQ leadership have since tried to reassure them.
• Also read: Julien defends his government’s “constructive approach” to a structuring network
• Also read: Pause on the tram project: Citizens want to be heard by the Caisse
In early November, the CDPQ accepted a commission from the Legault government to analyze what would be the best public transportation project for the Quebec metropolitan community.
This agreement surprised the fund’s main clients, who are investing $400 billion in Quebecers’ nest eggs (see box).
Major “concerns” about the fund’s independence have gripped those who manage Quebecers’ billions in pension funds.
The withdrawal of the tram project from the hands of the City of Quebec has created uncertainty in a sector that loves forecasts and returns.
“There are concerns,” a government source confirmed.
PHOTO TAKEN BY X @francoislegault
The 48 depositors’ funds include public and semi-public pension and insurance plans in Quebec. They represent more than 6 million Quebecers.
CDPQ manages these funds with the promise of “exploiting the best investment opportunities while aiming for optimal performance.”
According to our information, the big boss of CDPQ, Charles Emond, and that of CDPQ Infra, Philippe Batani, invited customers to a virtual meeting on November 29 to try to reassure them.
fears
About forty people attended this meeting.
On the menu: concerns about the nature of the mandate given to CDPQ Infra and the economic model envisaged by the Fund for this project. Comparisons with the failure of the REM mandate in East Montreal would also have been appropriate. The economic environment and current interest rates would also deter depositors.
CEO Charles Emond would have answered the questions himself. The aim was to explain the principles that guide the Fund in carrying out the project.
Without mentioning the concerns, the fund admits that it had to organize a meeting to discuss this mandate. “It was important to us to answer their questions about this project, which is generating a lot of interest,” said Kate Mofette, director of media relations at CDPQ.
According to our information, the CEO would have liked to point out that this was initially a “study contract” that was awarded as part of a framework agreement with the government.
The CDPQ will have the final say, he confided. It would only move forward with an investment project if a business opportunity arises for its customers.
Investments
Recall that in 2020, CDPQ became Alstom’s largest shareholder thanks to a $4 billion investment from its depositors.
Courtesy of the City of Quebec
Before the project was stopped, the city of Quebec had just signed a $569 million contract with the company specializing in the rail transport sector for tram vehicles, including 34 Citadis multiple units.
The uncertainty surrounding this contract also unsettles depositors. Currently, the City of Quebec has paid $5 million to Alstom, but since the project was stopped, the contract has been neutral, worrying shareholders.
The trains were to be assembled at the La Pocatière factory.
CDPQ’s main customers
Pension fund falls
Quebec Pension Plan Funds, Basic and Supplementary Plans
Retirement plan for government employees and public institutions
Supplementary pension plan for Quebec construction industry employees
Health and Safety at Work Fund
Generational Fund
Motor vehicle insurance fund Quebec
Executive pension plan
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