💸 Billions & Jobs Lost: Why Are Canadian Pension Funds Hiring Foreign Money Managers?

🍁It’s time for Canada to rethink who manages our money

A few weeks ago, I wrote about a big, uncomfortable question:

📌 Why don’t Canada’s pension funds have a mandate to support provincial and national economic growth?
📌 Why do they invest billions in direct investments abroad while overlooking opportunities in our own companies and infrastructure projects?

But direct investments are only part of the story.

💡 What about indirect investments?

Every year, Canadian pension funds deploy billions into public equity, private equity, and debt markets—but instead of channeling these assets through Canadian money managers, a substantial portion goes to foreign firms.

Why?

Why are we outsourcing capital management when we have some of the best money managers in the world right here at home?

It’s time for Canada to rethink who manages our money.

(Missed my last piece? Read it here)

📢 The UK Just Shifted Billions—But Not to Its Own Money Managers

Recently, The People's Pension, one of the UK's largest pension funds, shifted £28 billion (approximately CAD $47.6 billion) from State Street (U.S.) to Amundi (France) and Invesco (U.S.), citing a stronger alignment with ESG principles. (ft.com)

👉 A move made for ESG alignment, but it raises an important question:

💡 Why do pension funds consistently overlook their own country’s top-tier investment professionals?

And it’s not just the UK.

Canada does the same.

🍁Canada’s Pension Paradox: We Have the Talent, But They’re Not Always the First Choice

Canadian pension funds control over CAD $2.5 trillion in assets—yes, trillion with a T. (fitchratings.com)

Yet, a substantial portion of these assets is managed by foreign firms instead of homegrown investment powerhouses.

👉 So, while Canadian fund managers are flying overseas pitching their expertise to international investors, our own institutions aren’t always giving them a fair shot.

Does that make sense? Nope. Is it costing us billions in potential job creation, tax revenues, and economic growth? Absolutely.

📉 What Happens When We Don’t Invest in Our Own People?

Every dollar sent to a foreign money manager is a dollar not supporting Canadian economic growth. When we don’t prioritize our own investment talent:

❌ We miss out on job creation. The asset management industry is a massive employer, and growing it at home could mean thousands of high-paying finance and tech jobs.

❌ We shrink our tax base. Canadian money managers pay taxes here. Foreign firms? Not so much.

❌ We are not building an even stronger financial services industry. A thriving domestic asset management sector benefits pension funds, institutional investors, and the broader economy, ensuring Canada remains a global leader in financial services.

🍁Canada First Doesn’t Mean Canada Only—But It Should Mean Canada More

This is not about shutting out global investment firms—it’s about making sure Canadian money managers get a fair shot at managing Canadian capital.

📌 Keeping more of our capital management industry at home means more high-value jobs in Canada.

📌 It strengthens our financial sector, which in turn benefits institutional investors and pensioners.

📌 It ensures that Canadian money is working for Canada, not just fueling financial growth abroad.

And with a federal election on the horizon, this is a key topic that deserves attention.

📢 It’s Time to Have This Conversation

This isn’t just about finance—it’s about jobs, economic growth, and Canada’s financial future.

If we don’t take action now, we risk becoming a country that produces world-class investment talent—only to have them take their expertise elsewhere.

Let’s talk about it.

Drop your thoughts below. Let’s make some noise on this. 🚀

Peggy Van de Plassche is a seasoned advisor with over 20 years of experience in financial services, healthcare, and technology. She specializes in guiding boards and C-suite executives through transformational change, leveraging technology and capital allocation to drive growth and innovation. A founding board member of Invest in Canada, Peggy also brings unique expertise in navigating complex issues and fostering public-private partnerships—key elements in shaping the Future of Business. Her skill set includes strategic leadership, capital allocation, transaction advisory, technology integration, and governance. Notable clients include BMO, CI Financial, HOOPP, OMERS, GreenShield Canada, Nicola Wealth, and Power Financial. For more information, visit peggyvandeplassche.com.

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