The Trudeau government has not remained indifferent to calls from the business community to encourage Canadian pension managers to invest more in the country. He mandates a group to look into the issue, but it is unclear when a move could be made.
Six niches will be analyzed by this working group led by the former governor of the Bank of Canada Stephen Poloz: digital technologies and artificial intelligence, infrastructure, airports, venture capital, housing and the threshold of maximum ownership of pension funds in companies. Federal rules prevent these institutions from holding more than 30% of a company’s voting shares.
Calling all
Are you satisfied with this fourth budget from Finance Minister Chrystia Freeland? Your response may be published.
Write U.S
“Canadian pension funds hold more than $3,000 billion in assets,” underlines the budget tabled Tuesday by Federal Finance Minister Chrystia Freeland.
These institutions include the Caisse de dépôt et placement du Québec (CDPQ), CPP Investments, the Ontario Teachers’ Pension Plan as well as the Ontario Municipal Employees’ Pension Plan, among others.
Last March, around a hundred figures from the business community co-signed a letter to encourage Ottawa and the provinces to establish a framework encouraging pension fund managers to invest more in the country. Names like Alain Bouchard (Couche-Tard), Laurent Ferreira (National Bank), Eric La Flèche (Metro), Pierre Karl Péladeau (Québecor), Louis Audet (Cogeco) and Éric Martel (Bombardier) were among the signatories.
“Canadian pension funds have reduced their participation in Canadian companies listed on the stock exchange from 28% of their total assets at the end of 2000 to less than 4% at the end of 2023,” they emphasized.
This missive was sent to M.me Freeland as well as the provincial ministers of the provinces. The letter emphasized that investments made in Canada have an impact on portfolios, but also on the Canadian economy: job creation, improved income and increased contributions to pension plans. Less investment in Canadian companies increases their cost of capital, decreases their value, and reduces their capacity for growth, which makes Canada less attractive, it is emphasized.
M’s budgetme Freeland does not offer a timeline on the next steps awaiting the working committee. We limit ourselves to announcing its creation as well as the principle which must dictate its reflection.
With Richard Dufour, The Press
Read Group shooting for more investment in the country