Boosting economy through local pension investment

Letko Brosseau urges Canadian funds to invest domestically

Boosting economy through local pension investment

Daniel Brosseau, co-founder of Montreal-based Letko Brosseau and a significant proponent for domestic investment by Canada's pension funds, argues that such investments would bolster the Canadian economy and benefit the funds themselves.  

In an interview with BNN Bloomberg, Brosseau emphasized the overlooked broader economic impact of local investments by pension funds, which, he suggests, extends beyond mere returns.   

Brosseau highlighted that, while securing the best returns for pensioners remains the core duty of pension funds, the broader implications of where these investments are made cannot be ignored. 

He pointed out that the Canadian stock market has historically performed well against global markets, challenging the notion that pension funds must look abroad to meet their obligations.   

This perspective comes in the wake of an open letter directed to Finance Minister Chrystia Freeland, co-signed by Brosseau and nearly 100 business leaders, advocating for regulatory changes to encourage pension funds to invest more within Canada.  

This letter has sparked debate, with figures like Jim Leech, former head of the Ontario Teachers' Pension Plan, asserting the importance of maintaining the independence of pension funds to ensure optimal returns.   

The dialogue opened by this letter, according to Brosseau, is a crucial step toward recognizing the significant role domestic investment plays in national development.  

He underscored Canada's need for increased investment in various sectors, comparing the country's investment levels unfavorably with those of the US and other G7 nations.  

Brosseau contends that the potential for profitable investment within Canada is vast, given its abundant resources, educated workforce, and stable legal and governmental systems, thereby making a compelling case for keeping pension fund investments closer to home.