The Maple 8 may fund domestic projects amid rising trade tensions
Canada’s major pension funds are emerging as potential sources of domestic capital as the country navigates trade tensions with the United States and prepares for a snap federal election on April 28.
Prime Minister Mark Carney, appointed earlier this year, has signaled an intent to mobilize financial resources to manage risks from the evolving economic landscape.
With approximately 75 percent of Canadian exports going to the US, the federal government is preparing retaliatory trade measures following new tariffs introduced by the US administration. Carney has indicated that institutional capital may be used to counter the effects of any disruption.
The country’s eight largest pension funds—collectively known as the "Maple 8"—are viewed as key players.
The Caisse de dépôt et placement du Québec (CDPQ), managing C$473 billion in net assets, has already announced support for productivity-focused and market-diversification projects in Québec.
CDPQ CEO Charles Emond said that it was time to use the full expertise of Canadian firms, regardless of how the tariff situation develops.
Defined benefit (DB) pension plans are expected to be central to these initiatives. In 2023, Ontario’s DB plans paid out C$42.7 billion in benefits, contributing over $60 billion in economic activity, according to research from the Healthcare of Ontario Pension Plan (HOOPP) and University Pension Plan (UPP).
UPP holds 51 percent of its C$11.7 billion in Canadian assets and maintains that investment strategies must align with domestic currency liabilities.
HOOPP, with C$123 billion in assets, invests about 50 percent in Canada, including over C$40 billion in government bonds. Chief investment officer Michael Wissell noted the importance of diversification while expressing a preference for domestic investments when conditions are equal.
Canada’s federal government recently introduced a policy statement to attract private capital—including pension funds—into airport infrastructure.
The statement also proposed reviewing the 30 percent ownership cap on pension stakes in Canadian companies, an idea supported by several fund executives.
Still, some experts caution against mandated domestic allocations. A June 2023 paper co-authored by Keith Ambachtsheer of the University of Toronto suggests such rules may increase risk for pension members and recommends improving access to infrastructure instead.
PSP Investments holds 21 percent of its C$264.9 billion in Canadian assets and manages the C$15 billion Canada Growth Fund.
Since 2023, the fund has committed C$2.3 billion across five provinces, including a US$40 million investment in Dcbel Inc., a smart-home energy firm.
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