Caisse looks overseas, away from stocks to mitigate risk

Canadian pension fund giant Caisse de depot says it has modified its investment strategy to shield itself from market volatility and produce stable long-term returns.

The Montreal-based institution says it's taking steps to boost private investments while reducing its exposure to public markets.

It recently launched a quality global investment portfolio that will hold about 10 per cent of its investments in about two years.

The portfolio contains investments in big name companies such as Nestle and Heinz valued at a "few hundred million dollars."

It plans to expand the portfolio to about $15 billion by the end of 2014 to give its depositors increased exposure to stable returns.

New focus

CEO Michael Sabia told a group of journalists today that the change in strategy reflects its position as a long-term investor.

He also repeated the Caisse's confidence in Quebec-based companies CGI Group, Rona and embattled engineering giant SNC-Lavalin.

Sabia said the Caisse took an active role in rebuilding Rona's board because it has faith in its potential and doesn't believe the takeover offer from U.S. rival Lowe's was adequate.

Despite the serious problems facing SNC-Lavalin, he added the Caisse believes it has a legitimate ability to become a world leader.