Key Takeaways
- • Prime Minister Mark Carney said at the inaugural Canada Investment Summit that Ottawa does not want to direct or compel Canadian pension funds to invest domestically, preferring to create conditions in which institutions compete to invest in Canada.
- • The summit produced nearly $500 billion in capital commitments for Canadian investment, including from OTPP and CPPIB, with an additional $10 billion from OMERS earlier in the year.
- • A Canadian Shield Institute report recommends mandating that pension funds allocate 3% of assets under management to Canadian growth companies, phased in over 10 years, equating to roughly $7 billion in new capital annually.
- • The report notes pension funds have steadily shifted away from Canadian investment this century, with domestic allocations concentrated mainly in real estate and infrastructure.
- • BetaKit editor-in-chief Douglas Soltys acknowledges the policy debate's merits, including concerns that pension funds are not sovereign wealth funds and that beneficiary returns should not be compromised.
Summary
Prime Minister Mark Carney, speaking at the inaugural Canada Investment Summit, said the federal government neither wants nor intends to direct or compel Canadian pension funds to participate in domestic investment projects. Responding to a question about how Canadians can maintain stakes in the projects on offer, Carney said the goal is to "create the conditions where those institutions ... want to invest and compete with each other to invest in Canada," according to BetaKit.
The summit generated nearly $500 billion in capital commitments for Canadian investment, including from the Ontario Teachers' Pension Plan (OTPP) and the Canada Pension Plan Investment Board (CPPIB). OMERS separately committed an additional $10 billion earlier this year. BetaKit notes these commitments largely make the question of pension participation appear moot for now, though the topic has been prominent over the past two years.
A new report from the policy think-tank Canadian Shield Institute, released the week of the summit, argues that pension funds have steadily reduced their Canadian investment throughout this century, and that when they do invest domestically, the allocation is mostly to real estate and infrastructure. The report recommends that pension funds be mandated to allocate 3% of their assets under management to Canadian growth companies. Phased in over 10 years, BetaKit estimates this would represent roughly $7 billion in new capital annually, close to the total venture capital invested in Canada in 2025. The report's authors argue that "the pension funds are creatures of public policy; the government can choose to change their mandate."
BetaKit editor-in-chief Douglas Soltys acknowledges the counterargument that pension funds are not sovereign wealth funds and that beneficiaries' expected returns should not be compromised, calling that position "well taken." He notes that implementation details of any mandate would matter significantly. Soltys concludes that the prime minister currently appears unwilling to pursue a mandate.
The summit generated nearly $500 billion in capital commitments for Canadian investment, including from the Ontario Teachers' Pension Plan (OTPP) and the Canada Pension Plan Investment Board (CPPIB). OMERS separately committed an additional $10 billion earlier this year. BetaKit notes these commitments largely make the question of pension participation appear moot for now, though the topic has been prominent over the past two years.
A new report from the policy think-tank Canadian Shield Institute, released the week of the summit, argues that pension funds have steadily reduced their Canadian investment throughout this century, and that when they do invest domestically, the allocation is mostly to real estate and infrastructure. The report recommends that pension funds be mandated to allocate 3% of their assets under management to Canadian growth companies. Phased in over 10 years, BetaKit estimates this would represent roughly $7 billion in new capital annually, close to the total venture capital invested in Canada in 2025. The report's authors argue that "the pension funds are creatures of public policy; the government can choose to change their mandate."
BetaKit editor-in-chief Douglas Soltys acknowledges the counterargument that pension funds are not sovereign wealth funds and that beneficiaries' expected returns should not be compromised, calling that position "well taken." He notes that implementation details of any mandate would matter significantly. Soltys concludes that the prime minister currently appears unwilling to pursue a mandate.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.