Freeland removes 30% investment cap for Canadian pension funds
Canadian pension funds will no longer be restricted to a cap of 30 per cent control of companies they invest in and the federal government is working with the institutional investors and domestic airports to “explore measures for further pension fund investment on airport lands.”
Deputy prime minister Chrystia Freeland made the announcements — part of sweeping measures that could total $47 billion in government money and incentives to encourage more pension investment in Canada — at a news conference Friday in Toronto. She said more details would be provided in Monday’s fall economic statement.
“We are making it easier for pension funds to acquire controlling stakes in Canadian entities,” Freeland said. “Currently Canadian pension funds are restricted from owning more than 30 per cent of a Canadian entity. We’re going to change that.”
She said the series of changes and new measures that will affect the country’s largest pensions were made following a report from former Bank of Canada governor Stephen Poloz, who she tasked in the spring with finding ways to encourage more domestic investments by the Canadian funds, which collectively control $3 trillion.
“Canadian pension funds have… some of the world’s best investment expertise. They are envied around the world,” Freeland said at the news conference at the Toronto Stock Exchange.
The campaign to get more pension money invested domestically began in 2023 after fierce lobbying in Ottawa, but drew pushback from large pension funds whose executives argued that their diversification geographically and by asset class is what resulted in their enviable returns.
Pension officials also argued that Canada had not freed up large infrastructure assets, such as airports and ports,
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