QUEBEC CAISSE EARNS THREE BILLION DLRS IN 1986

  Caisse de depot et placement du
  Quebec, 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.
  

