??It’s Time for Canada to Leverage Its Own Investment Power

For 15 years, I’ve been asking the same question:

?? Why don’t Canada’s pension funds have a mandate to support provincial and national economic growth?

And for 15 years, I’ve been given the same answer: ? “It’s not in the mandate.”

To which my response has always been: Well, why not change the mandate?

It seems so obvious, yet nothing changes. Meanwhile, our largest trading partner—the United States—is increasingly turning from an ally to a strategic threat. Tariffs, Buy American policies, and now even expansionist rhetoric signal a future where Canada’s economic independence is at risk.

Yet, while the U.S. is doubling down on economic nationalism, we’re not even using the tools at our disposal to strengthen our own economy.

This is one of the reasons I recently applied for the role of Chief Investment Officer at the Ontario Pension Board (OPB). If we want change, we need people in leadership who will push for policies that prioritize both strong returns and economic resilience. And this is an issue where I would love to move the needle.

The Power of Investment: A Wasted Opportunity

Canadian pension funds control $2.5 trillion in assets. That’s more than Canada’s entire GDP ($2.4 trillion in 2023). These funds are some of the most sophisticated investors in the world, backing infrastructure, private equity, and real estate across Europe, Asia, and the U.S.

Yet, most of them don’t have a mandate to prioritize investments that benefit Canada.

There’s one exception: Caisse de dép?t et placement du Québec (CDPQ).

CDPQ actively invests in Québec businesses and infrastructure while still delivering strong returns. If they can do it, why can’t other funds?

?? Why do our pension funds build highways in Texas but not in Ontario? ?? Why do we back private equity in Europe but underfund manufacturing in Canada? ?? Why do we finance energy projects abroad but hesitate to support our own industries?

The answer? Because "it’s not in the mandate.”

It’s time for that to change.

Economic Resilience in an Uncertain World

Canada’s economic dependence on the U.S. is staggering: ?? 63% of our trade is with the U.S. ?? $3.6 billion in goods and services cross the border daily. ? The U.S. is our largest investor, but also our biggest competitor.

The risks of this dependence have never been clearer. The U.S. is prioritizing its own industries, tightening trade restrictions, and making it harder for Canadian businesses to compete.

If we don’t act now to mobilize our investment and purchasing power, we risk becoming even more vulnerable.

? A New Mandate for Canada’s Pension Funds Pension funds are meant to maximize returns for beneficiaries. But long-term, sustainable returns depend on a strong, independent Canadian economy.

It’s time to update investment mandates to: ?? Prioritize Canadian infrastructure, innovation, and industries—just like CDPQ does for Québec. ?? Support national and provincial economic resilience in key sectors like manufacturing, energy, and technology. ?? Ensure our capital is working for us—not just for foreign economies.

This isn’t about protectionism—it’s about economic survival. The U.S. is playing the long game. Canada needs to start doing the same.

Final Thought: The Question We Need to Answer

If CDPQ can invest in Québec while still delivering competitive returns, why can’t the rest of Canada’s pension funds do the same for their provinces and the country?

The mandate excuse no longer holds.

The real question is: Do we have the political will to change it?

Let’s discuss. ??

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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