Canadian Pension Funds Push for Ambitious Infrastructure Plan From Prime Minister Trudeau

Roadwork

Canada’s largest pension funds are urging Prime Minister Justin Trudeau to think big when it comes to infrastructure – that is, if the country wants to attract private investors, like pension funds, to the projects.

Seven of Canada’s pension funds rank among the top 30 infrastructure investors globally.

More from Bloomberg:

Canada’s largest pension funds have advice for Justin Trudeau’s government as it prepares to double its infrastructure investments over the next decade: follow the Australian model and think big.

“What are we looking for? We’re looking for projects of scale,” said Mark Wiseman, chief executive officer of Canada Pension Plan Investment Board, the country’s largest pension fund with C$283 billion in assets.

The Canadian government isn’t expected to provide extensive details of its infrastructure plan in the March 22 budget because it’s still developing a long-term strategy. Federal officials have said an extra C$10 billion will be made available over the next two years while it crafts a broader strategy to deploy an additional C$20 billion to each of three silos over the next decade: public transit, green infrastructure, and social infrastructure.

[…]

The challenge for larger funds to invest in traditional public-private-partnerships is that the equity stake — and in turn the reward — is often too small for them to pursue, said Andrew Claerhout, head of the infrastructure group for Ontario Teachers’.

Canada’s largest pension funds collectively manage more than $560 billion in assets.

 

Photo by Kyle May via Flickr CC License

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