N@N

Amid trade war, 'Buy Canada' pressure builds on $1.6 trillion in pension pots

The article from MSN discusses the growing pressure on Canada's major pension funds, which collectively manage $1.6 trillion, to invest more domestically. This push comes amidst concerns about foreign investment in Canadian companies, particularly highlighted by the potential sale of Teck Resources Ltd. to foreign entities. The article notes that while Canadian pension funds have historically invested a significant portion of their assets abroad, there is now a call for these funds to support Canadian businesses more robustly. This sentiment is driven by economic nationalism and the desire to keep strategic assets within Canada. However, the funds' fiduciary duty to maximize returns for their beneficiaries often leads them to invest globally where they see the best opportunities. The debate includes voices like those of Teck's Chairman Emeritus Norman Keevil, who has criticized the lack of domestic investment, and Finance Minister Chrystia Freeland, who has encouraged pension funds to consider the broader economic benefits of investing at home. Despite these pressures, pension funds like the Canada Pension Plan Investment Board (CPPIB) maintain that their primary responsibility is to their contributors and beneficiaries, not to national economic policy.

Read the Full Bloomberg Article at:
[ https://www.msn.com/en-ca/money/other/buy-canada-pressure-builds-on-1-6-trillion-in-pension-cash/ar-AA1AGpcW ]