Canada’s Caisse de depot et placement du Qubec (CDPQ) announced investment losses and lower net assets for the first six months of the year on Wednesday as aggressive rate hikes caused turbulence on the stock and bond markets.
As of June 30, the net assets of Canada’s second largest pension fund were $392 billion, down from the $419.8 billion at the end of last year.
CDPQ investments lost 7.9% of their value during the period, compared to a return of 5.6% during the same period last year, as easy tax policies propelled stock prices shares to record highs.
“The first six months of the year have been very difficult,” chief executive Charles Emond said, adding that the unstable conditions will persist for some time.
Last week, the Canada Pension Plan Investment Board also reported a decline in net assets in the first quarter as market turbulence weighed on the performance of its funds.