The Caisse de dépôt et placement du Québec says that its subsidiary CDP Capital – World Markets is exiting the institutional investment fund market.
According to the Caisse, the withdrawal is the result of an assessment of third-party operations conducted by management in recent months as part of the performance plan announced in April 2003 and in line with the new strategic focus on depositor services, as approved by the board of directors.
“After taking the time to analyze the situation, the Caisse has decided to discontinue its efforts to position itself as a commercial player in the organized market for fund management services offered to institutional investors. It will refocus its role in the Quebec and Canadian financial industry on its investment operations on the various markets and on the mandates it awards to industry managers,” said Caisse chairman and CEO Henri-Paul Rousseau, in a news release.
The contracts in effect will be terminated in an orderly fashion in the months to come. In the meantime, the Caisse says it will fulfill all its contractual obligations in respect of its investment fund clients.
The Caisse says it has undertaken to ensure a smooth transition with the new managers selected by its clients. As at December 31, 2002, the subsidiary CDP Capital – World Markets had on deposit and managed about $1 billion belonging to clients other than depositors.
The end of the Caisse’s fund marketing operations will eventually involve closure of the Institutional Client Services unit and rationalization of its marketing resources, which will involve the termination of 18 positions.
To improve the return on its depositors’ holdings, the Caisse says it will continue to offer asset management services to third parties, mainly through its real estate and private equity subsidiaries. As at Dec. 31, 2002, the Caisse and its various subsidiaries managed $22.2 billion of assets for clients that are not depositors.
Caisse unit withdraws from institutional fund market
Shuttering of CDP Capital part of new strategic focus
- By: IE Staff
- October 22, 2003 October 22, 2003
- 08:10