Infrastructure leasing or sale can encourage pension funds to invest domestically
Major pension funds have built trillions in assets by pursuing high-performing portfolios and maintaining independence in their investment decisions. Recently, however, discussions have emerged about imposing mandates that would require these funds to allocate more capital domestically鈥攁 trend not limited to Canada, as countries like Sweden have considered similar measures.
Cash-strapped governments should resist telling pension funds how to invest
Stock markets continue to hit record highs, yet many governments听remain听strapped for cash鈥攁nd some are eyeing pension funds to cover fiscal shortfalls.
They should resist the temptation to mandate that pension funds invest more domestically,听said听Associate Professor of Finance Sebastien听Betermier听in an interview with听CNBC.听
Whether renting or buying, Canadians are exposed to risk
Buying a home can help you build household wealth, but renting has fewer overall costs, which allows you to save more of the money you earn. While the conventional wisdom has been that buying is the better financial decision for most people, sky-high real estate costs change the equation. Stock markets have also performed well in recent decades, and investing the surplus left over from renting can pad your personal finances in a big way鈥攊f you actually do it.
Caisse de depot鈥檚 stake in UK nuclear project is a model to emulate
The Caisse de d茅pot et placement du Qu茅bec is taking a 20% stake in the Sizewell C nuclear power station in Suffolk, England. It is the UK鈥檚 first new nuclear power plant since the 1990s, and Professor Sebastien Betermier credits the government there with creating the favourable circumstances for private investors like the Caisse to take part in infrastructure development.
Infrastructure bank model can encourage investment in infrastructure projects
Private market developers face an 鈥渋nvestment catch-22鈥� in getting infrastructure projects off the ground, Professor Sebastien Betermier wrote in a recent report for the C.D. Howe Institute. Private investors view new infrastructure markets as complex, unfamiliar, and high risk. But the infrastructure bank model can create value as a cost-efficient policy tool in the government ecosystem, Betermier concluded.
Nine directors at large Canadian pension funds also hold fossil fuel positions
Nine of the directors who oversee Canada鈥檚 largest pension funds also hold positions at fossil fuel companies, according to a report by Pensions and Investments.
Concrete policy steps could address issues with Canada鈥檚 pension system
A well-designed pension system brings enormous social and economic values to its members and to society as a whole. Unfortunately, Canada鈥檚 doesn鈥檛 stand out. A 2024 report from Mercer ranks it just 18 out of 48 countries. In thefutureeconomy.ca, Prof. Sebastien Betermier proposes three measures that could help improve it by:
Infrastructure banks can help get large infrastructure projects off the ground
In Canada, investment in infrastructure has lagged, but infrastructure banks are one way to provide financing for large-scale infrastructure projects that could take decades to pay off. 鈥淐anada needs new infrastructure 鈥� housing, energy, ports 鈥� it鈥檚 all critical to our future,鈥� says Prof. Sebastien Betermier.
Tariff uncertainty interferes with business investment
Ever since Donald Trump鈥檚 鈥楲iberation Day鈥� tariff announcement, stock markets have been volatile. The tariffs impact thousands of companies, and with the exact scale and scope of tariffs changing almost daily, the extent to which they will be affected is uncertain. 鈥淚t makes it difficult for companies to investments,鈥� Prof. Sebastien Betermier told TVA Nouvelles.
Canada鈥檚 big pension funds hold lessons for funds elsewhere
Canada鈥檚 big pension funds are the envy of fund managers in other countries. They鈥檙e something that the UK鈥檚 defined contribution plance could aspire to, writes Padraig Floyd in Pensions Expert. 鈥淭hey鈥檙e all public, but they鈥檙e run like private sector corporations,鈥� said Prof. Sebastien Betermier.
Buy Canadian movement shouldn鈥檛 interfere with prudent pension fund management
The Trump administration鈥檚 tariffs have catalyzed a cross-country movement to buy Canadian products. But will that movement affect the how Canada鈥檚 big pension funds manage their portfolios? The eight largest pension plans in Canada hold more than $2 trillion in assets, but only about a quarter of those assets are Canadian.
The debate over domestic investment for Canadian pension funds
As calls to bolster Canada鈥檚 economy intensify, the debate over pension fund strategies has gained national attention. In a Financial Post article, Professor Betermier highlights concerns over political interference in pension management and the potential long-term impact on investment strategies.
Professor Betermier offers guidance for Quebec investors
With increasing market volatility, Professor Sebastien Betermier shares his advice on how Quebec investors can weather economic uncertainty. In an interview with the Motnreal Gazette, he emphasizes the importance of staying disciplined, avoiding panic and hasty decisions, and consulting a financial planner before making changes.
Large number of Canadians are missing out on pensions
According to a report by the National Insitute on Ageing, there are around 200,000 people in Canada with registered pension plans who are eligible to claim them, but haven鈥檛. Often, the unclaimed funds stem from contributions made early in a person鈥檚 career that were simply forgotten about.
