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Making strategic assets available to pension funds would encourage more domestic investment

Published: 18 December 2024

Canadian pension funds have a mandate to deliver steady pension payments to millions of plan members, writes Professor Sebastien Betermier in Benefits Canada. But that’s easier said than done, and the most cost-efficient way to deliver is by investing in a globally diversified portfolio tilted toward strategic assets. This type of asset, however, isn’t available in Canada, so pension funds look for them elsewhere. To encourage more domestic investment by these funds, Canada should consider facilitating access to strategic infrastructure assets such as airports, railroads and electricity transmission grids, argues Betermier. When this type of asset is available elsewhere, Canada’s pension funds bid. Making these assets available here would create a win-win for the Canadian economy and members of Canadian pension funds. Not only would it retain and attract Canadian capital, it would attract capital from elsewhere.

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