Canadian pension leaders seek access to public assets, aiming to boost domestic investment and growth
Canada’s largest pension funds are calling on governments to unlock new investment opportunities by selling public assets such as airports and roads—a move they argue could strengthen domestic portfolios and support economic growth.
The Logic said that the leaders of these funds point to the wealth of government-held infrastructure and urge a shift in thinking about who should own and operate these assets.
Gordon Fyfe, CEO of the British Columbia Investment Management Corporation (BCI), emphasized the potential benefits of such transactions.
He noted that governments at every level hold “a lot of great assets” on their balance sheets and, given current deficits, questioned why these assets would not be sold to institutional investors like pension funds, which can hold and finance them for the long term.
Fyfe added that Canadian pensions would be eager to invest in airports, transportation, and energy assets if given the chance.
Blake Hutcheson, CEO of OMERS, echoed the call for a “mind shift” among Canadian governments regarding the private ownership of major infrastructure.
According to The Logic, he observed that governments often hesitate because their low borrowing rates make it cheaper for them to finance projects directly.
However, Hutcheson suggested that it is time for policymakers to recognize that “it is okay for a Canadian pension plan to own a bridge or a port.”
The expertise of Canadian pension funds in managing public assets globally is well established.
Deborah Orida, chief executive of PSP Investments, highlighted that these funds already own and operate significant infrastructure abroad, including seven airports.
She asserted that this expertise could be leveraged domestically, benefiting both the funds and the country.
Canadian pension funds have built extensive infrastructure holdings worldwide.
The Ontario Teachers’ Pension Plan has held minority stakes in airports in Sydney, Brussels, and Copenhagen.
La Caisse acquired nearly 30 percent of the Port of Brisbane after its privatization in 2010.
The Canada Pension Plan Investment Board purchased a 49.99 percent stake in five Chilean toll roads in 2012 for $1.14bn.
The push for increased domestic investment by the so-called Maple 8 pension funds has intensified in recent years, especially amid a surge in Buy Canadian sentiment during US President Donald Trump’s trade war.
Earlier this month, federal Industry Minister Mélanie Joly called on the country’s largest pension funds to invest more at home, as the government seeks $500bn in new financing to boost the economy and reduce reliance on the United States.
Despite these calls, as per The Logic, pension leaders stress the need for independence in their investment decisions.
Orida and Fyfe both underscored that pension funds must remain free from government influence, with Orida noting that “losing that independence is what keeps me up at night.”
Historically, pension leaders have resisted domestic investment targets, focusing instead on maximizing long-term returns for their members.
However, there is a growing openness to expanding Canadian portfolios as the federal government signals greater support for assets that fit their mandates.
Risk remains a key concern for pension funds considering large-scale domestic infrastructure projects.
Fyfe pointed out that while BCI would welcome more Canadian assets, new developments often come with significant risk, which pension funds—responsible for delivering steady returns to retirees—may not always be comfortable assuming.
Annesley Wallace, CEO of HOOPP, indicated that her fund is interested in new Canadian infrastructure projects if the government takes steps to minimize those risks, such as by facilitating development and construction.
