Canada’s largest pension fund manager, the Caisse de dépôt et placement du Québec, reports its net assets grew to $159 billion at end of 2011 from $151.7 billion at end of 2010 despite market challenges.

The Montreal-based money manager said the average return on depositor funds was four per cent.

“Since 2009, we have worked on improving our ability to face turbulent markets. We have simplified our investment strategies, reduced our leverage and developed new tools, thereby enhancing our efficiency and agility,” president and CEO Michael Sabia said in a statement.

“In 2011, these efforts served us well. Despite difficult conditions, we were able to adjust our asset allocation to protect our depositors’ capital and notably grow our assets.”

Net investment income was $5.7 billion, plus $1.5 billion in net deposits.

The Caisse noted that since December 2008 — during the recession — its net assets have grown by $38.9 billion and that for the years 2009, 2010 and 2011 its annualized return was 9.1%.

Caisse has existed since 1965 and its mandate is to grow the funds of its clients, mainly Quebec-based public and private pension funds and insurance plans.

Seven pension funds and insurance plans represent more than 95.5% of the Caisse’s depositors.