Canada taps ex-BOC governor to examine how pension funds invest

Canada’s finance minister has asked former central bank governor Stephen Poloz to examine ways to entice its pension funds to invest more in the country.

Poloz will lead a “working group” that will look at what it will take to get Canadian pensions to put more of their capital into domestic opportunities — including housing development, venture capital and infrastructure such as airports, the government said in budget documents Tuesday.

Large public pension managers including the Canada Pension Plan Investment Board have few restrictions on where they can invest. Over time, they’ve made a huge swing into foreign markets, seeking better returns and greater diversification.

That shift has spurred debate within the country. Last month, more than 90 business leaders, including current and former CEOs, signed an open letter to Finance Minister Chrystia Freeland and her provincial counterparts, urging them to alter the rules for pension funds to “encourage them to invest in Canada.”