TORONTO — Finance Minister Chrystia Freeland says the upcoming fall economic statement on Monday will remove the cap that currently restricts Canadian pension funds from owning more than 30 per cent of the voting shares of a Canadian entity.
Freeland said this would make it easier for Canadian pension funds to make significant investments in Canadian entities. The federal government plans to consult with the provinces on the treatment of provincially-regulated pension plans during the development of regulatory amendments.
It's part of a list of measures unveiled by Freeland during a news conference in Toronto on Friday.
The announcement comes after a review led by former Bank of Canada governor Stephen Poloz on catalyzing domestic investment by Canadian pension funds.
"Canadian pension funds have over $3 trillion in assets and some of the world's best investment expertise," Freeland told reporters.
"Our pension funds invest Canadian money. They're run by Canadians who live here, who love Canada, and who would love to invest more here, closer to home."
Ottawa is introducing other measures such as a fourth round of the Venture Capital Catalyst Initiative with $1 billion in funding available in 2025-26. It said this round will include more enticing terms for pension funds and other institutional investors.
The federal government is also providing up to an aggregate of $1 billion to invest in mid-cap growth companies and unlocking up to $45 billion in aggregate loan and equity investments for certain artificial intelligence data centre projects.
Another part of the announcement was aimed at potentially lowering the threshold that limits municipal-owned utility corporations from attracting more than 10 per cent private sector ownership, which Ottawa says would help Canadian pension funds acquire a higher ownership share.
The government will also consult airports and pension funds on potential ways to further incentivize investment on airport lands, such as by making changes to airport authority ground leases.
Freeland said the moves come as Canada is "in a global fight for capital," especially due to policies of the incoming Trump administration in the U.S.
The deputy prime minister said the Trump administration, which she described as "economic nationalist," is trying to create economic uncertainty outside the U.S. "as a strategy to discourage investment anywhere other than the United States."
"We have to be candid about the reality of the incoming U.S. administration. This is an administration that believes in America first," said Freeland.
"Canada is going to fight for Canada. Our government is fighting for Canadian jobs."
This report by The Canadian Press was first published Dec. 13, 2024.
Sammy Hudes, The Canadian Press