More than 90 top Canadian business leaders signed an open letter Wednesday to the country’s finance minister and their provincial counterparts urging the need to address the decline in domestic investment by pension funds.
“We are concerned about the decline in Canadian pension fund investment and its impact on the Canadian economy. Millions of Canadians have contributed to their pensions with wages earned in Canada,” the letter said.
The country’s pension funds have reduced the holdings of listed Canadian companies from 28 percent at the end of 2000 to less than 4 percent of total assets by the end of 2023, it said.
Prominent signatories to the letter included Laurent Ferreira, CEO of NA.TO at National Bank of Canada, Tony Staffieri, CEO of Rogers Communications, and Tim McKay, vice chairman of CNQ.TO at Canadian Natural Resources.
Pension funds are vital to a country’s economy because they have significant bank-like assets invested in various asset classes, including bonds, stocks and alternative investments. The income secures retirement income and supports the finances of the older population.
The most important Canadian pension funds include Canada Pension Plan (CPP) Investments, Caisse de dépôt etplacement du Québec (CDPQ) and the Ontario Teachers’ Pension Plan (OTPP).
“Over the past 25 years, Canadian equity markets have outperformed G7 countries and consistently delivered very competitive returns,” the letter said.
The letter also received support from former CEOs of notable companies such as Scotiabank’s BNS.TO Brian Porter and Air Canada’s AC.TO Calin Rovinescu.
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