Executives eye asset sales amid Ottawa’s trade plans
Top executives from Canada’s largest pension funds warned that government interference could undermine the independence that has guided their investment success, as Prime Minister Mark Carney prepares to unveil a budget expected to promote infrastructure and defense spending.
Speaking at an event hosted by the Economic Club of Canada in Toronto, executives from the Public Sector Pension Investment Board (PSP Investments) and the British Columbia Investment Management Corp. (BCI) said political involvement in investment decisions could affect the governance model that has supported pension performance.
PSP Investments CEO Deborah Orida said, “Our independence has been the key to our success,” adding that there are ways for pension funds to support the country without “having it forced upon us.”
According to Bloomberg, Carney’s government is expected to outline policies next week aimed at supporting infrastructure and trade diversification. These measures have prompted discussion about whether institutional investors could play a larger role in funding national priorities.
Tension between policy and investment mandates
Canada’s public-sector pension funds have generally been shielded from direct political demands through legislation and governance frameworks that assign accountability to professional boards of directors. These structures have allowed pension managers to make investment decisions independent of government direction.
However, Bloomberg reported that calls for increased domestic investment have intensified, driven by a “Buy Canada” movement that gained traction following U.S. President Donald Trump’s trade measures. Some government officials and policymakers have urged the country’s largest pension funds to direct more capital toward local projects.
The discussion has resurfaced as Carney’s administration targets a doubling of Canada’s non-U.S. exports within ten years. The November 4 budget is expected to include measures to help achieve that goal, particularly through infrastructure development and military procurement.
Domestic investment opportunities
While maintaining independence remains a concern, several pension fund executives said they remain open to further domestic investment when aligned with their mandates. OMERS CEO Blake Hutcheson said, “Our direction of travel is more Canada. We want to invest more in this country. We believe in this country, we like the rule of law.”
Executives noted that Canada’s largest pension funds—including PSP Investments, BCI, OMERS, and the Canada Pension Plan Investment Board—hold significant global infrastructure portfolios in sectors such as ports, airports, renewable energy, and transportation.
Bloomberg noted that the Carney government has so far not taken any steps to compel pension funds to allocate capital to specific domestic projects. Instead, the focus has been on encouraging collaboration between public and private capital to support economic objectives.
Proposal for public asset sales
BCI CEO Gordon Fyfe suggested that one option for closer cooperation could be through the sale of public assets to institutional investors. “There are a lot of great assets on the balance sheets of governments at every level,” Fyfe said. “I promise you we would compete like hell with each other so that the governments would get a very good price on these assets.”
According to Bloomberg, pension leaders believe such transactions could allow governments to unlock capital while giving funds access to stable, long-term investments consistent with their mandates.
As Carney’s administration prepares to release the national budget, the discussion between government policy and pension independence continues to draw attention from Canada’s institutional investment community.
