Annual report 2008 of the Caisse de dépôt et placement du Québec: Clarification of the level of risk in 2008

The Caisse wishes to provide clarification following comments made about a passage in its annual report regarding its level of risk.

/ In 2008, and especially in the context of the global financial crisis, the Caisse’s board of directors and management continuously monitored the level of risk at all times, and they continue to do so;
 
/In 2008, overall risk to the portfolio increased as a result of extreme market volatility, which was observed in all fund managers;
 
/ In October 2008, in light of the financial crisis, the Caisse reduced its exposure to equity markets and increased its investments in bonds, with the goal of lowering overall risk, not increasing it;
 
/ Following these changes, there was an increase in the spread between the Caisse’s portfolio and the benchmark portfolio, which is known as “active risk” (4.4% at December 31, 2008) and only represents a small part of the portfolio’s overall risk.
 

About the Caisse de dépôt et placement du Québec
The Caisse de dépôt et placement du Québec is a financial institution that manages funds primarily for public and private pension and insurance plans. It held $120.1 billion of net assets as at December 31, 2008. As one of the leading institutional fund managers in Canada, the Caisse invests in the main financial markets as well as in private equity and real estate. For more information: www.cdpq.com