Despite all fears about the U.S. trade war and President Donald Trump’s threats to Canadian sovereignty, the country’s largest pension fund continues to invest heavily in the United States.

Canada Pension Plan (CPP), the country’s largest pension fund, announced this week that assets have grown to a record $780.7 billion, with 47% of them invested in the United States, compared to just 13% in Canada.

According to , this level of U.S. ownership has not changed in the year since President Trump returned to office. Third quarter results It was released on Friday.

CPP’s U.S. assets have steadily increased since 2005, when Ottawa lifted the cap on foreign holdings in Canadian pensions and RRSPs.

CPP currently has $366 billion invested in the United States, compared to $98 billion in Canada.

A CBC analysis found that CPP is not alone among the Maple 8, Canada’s largest pension funds, which collectively hold $1 trillion in U.S. assets.

For example, 55 per cent of the portfolio held by OMERS (Ontario Municipal Employees Retirement System) is American, as is 40.5 per cent of the portfolio held by PSP (Public Service Pension System).

Only three companies in the Maple Eight have more assets in Canada than in the United States: Ontario Health Pension Plan, Ontario Teachers’ Pension Plan and Alberta Investment Management Corporation.

When asked this week about the company’s U.S. stock, CPP spokeswoman Michel LeDuc acknowledged investors were increasingly concerned about geopolitical risks. However, he stressed that CPP is making a long-term investment.

“We are not easily swayed by current events, economic conditions or even election cycles, although we are closely monitoring disruption to avoid undue risk,” he said.

Leduc says CPP is actually below average holding size in the U.S. when compared to key indicators of global investment diversification. MSCI World Index and Financial Times Stock Exchange 100.

“Both of these global indexes are 65% American,” Leduc said. “Yes, I understand that Canadians are wondering, ‘Why so much more in the United States? Why not more in Canada?’…47 per cent is actually much lower.” [the average]”

call for domestic investment

Daniel Brosseau, president of Letko Brosseau Global Investment Management in Montreal, said pension funds do more than just sign people’s checks to support their retirement. They have a lot of impact on the economy.

“They are also investing in goods, in factories, equipment and economic activity,” he said. “They can influence the wages of Canadians and through investment they can influence the wealth of Canadians in Canada.”

In 2024, Brosseau co-authored a letter signed by 90 investment leaders asking Ottawa to create new incentives for Maple Eight to invest more of its capital domestically.

“We have a lot of dry powder and about $3 trillion to invest in Canada,” Brosseau said.

Economist Sen. Clement Gignac says uncertainty south of the border and concerns about new investment opportunities here are prompting Canadian pension funds to reconsider their U.S. holdings.

“The environment has changed a lot. Markets are still liquid, but the Trump administration’s economic policies are very unpredictable,” Gignac said. “I think the risks and returns have changed with respect to the U.S., and I think that’s actually why Canadian pension funds are now reassessing their exposure to the U.S. market.”

Pension and federal officials meet on Bay Street

Maple Eight Fund managers met with Canada’s finance minister in Toronto in January to discuss new ventures that would leverage the $2.6 trillion in assets they have amassed, as well as encouraging more domestic investment.

Finance Minister François-Philippe Champagne told CBC News: “We recently had a discussion with all of our countries. … We can respect the independence of each country, but at the same time look at the opportunities and work together more.”

“We have quarterly meeting points where we sit down together and look at the types of projects that could lead to further investment in Canada.”

However, the government has not taken any steps to regulate pension funds or force them to “buy Canadian,” which was the case before 2005, when Ottawa imposed foreign ownership restrictions on RRSPs and pension funds.

“I have tools in my toolbox, but this is what I think at this stage. [the big pension funds] I realized there was an interest in investing in Canada,” Champagne said.

Keith Ambachtshea of ​​the Center for International Pension Management at the University of Toronto’s Rotman School of Management was among those who fought to remove the cap on foreign investment.

“I was part of a long campaign to say, ‘That’s a really bad idea. We’ve got to get rid of this.’ Pension funds have to be able to diversify globally,” Ambachtshea said.

He says he’s not surprised by their large U.S. holdings.

“If you look at the global portfolio collectively, it includes a significant portion of the United States, because the United States is a large country with a large capital market,” he said. “The good news is, if you measure what we’ve actually done over the last 10, 20 years, it’s pretty good.”

As an example, CPP reported on Friday that its average annual return over the past 10 years was 8.4%, despite recent “geopolitical tensions.”

In the long run

CBC has reached out to Maple Eight pension funds for comment. Some people didn’t reply.

Fund managers are keeping a close eye on developments in the U.S. in light of recent megaprojects announced by various governments, and some emphasized that they are exploring new ventures in Canada. The City of Ottawa has allocated $264 million to a new Major Projects Authority.

“We recognize that this is a critical time for Canada, and we believe there is a tremendous opportunity to advance transformative nation-building projects,” OMERS spokesperson Don Peet said in an email. “We are working with all levels of government and other partners and are considering several opportunities at this time.”

CPP’s Michel LeDuc said the fund is ultimately interested in low-risk investments that offer predictable returns.

“We are monitoring very closely the public policies that are being put in place at the federal and local level to provide opportunities. We are looking for assets that reduce risk and provide predictable, long-term revenue streams,” he said, citing “infrastructure, utilities, airports, etc.” as examples.

“This fund is not managed on a whim; we act on very clear objectives. [Canada Pension Plan] Do not act on sudden, impulsive, unpredictable desires. ”