Caisse de depot et placement duQuebec, the government agency which manages the province's
pension funds, said its investment portfolio earned a net
profit of almost three billion Canadian dlrs in 1986, an
increase of 300 mln dlrs over 1985.
    The agency said in its annual statement that it had assets
with a total book value of 25 billion dlrs, or a market value
of 28 billion dlrs, at the end of 1986.
    These holdings had a rate of return of 13.5 pct in the
year, which was below the Caisse's average return of 16 pct in
the past four years and 14.2 pct in the past eight years.
    The Caisse said foreign equity investments represented 3.6
pct of total assets, while U.S. government securities accounted
for another 5.2 pct of the overall portfolio.
    The agency's holding of U.S. government securities yielded
a return of 20.7 pct for the year, significantly more than
either the 14.1 pct earned on the total bond portfolio or the
13.5 pct for all funds under management.
    "These high liquidity securities, which are held on a
temporary basis and for purposes of strategy and the protection
of the overall bond portfolio, have been efficient," the agency
said of the U.S. securities.
    The agency said it has 7.9 billion dlrs invested in
Canadian private sector businesses after channeling 965 mln
dlrs of new funds into this area in 1986.
    The Caisse said it acquired 825 mln of new Government of
Quebec bonds and 342 mln dlrs of new securities from other
Quebec government issuers during the year.
   
 Reuter
