A group of Australia’s largest industry superannuation funds and leading Canadian counterparts have formed a pact under the Canadian-Australian Pension Funds Investment Initiative, aiming to unlock investments in their respective countries.
Canada and Australia have globally significant and growing pension systems (the second- and fourth-largest in the world, respectively). By 2040, assets under management are expected to reach A$11trn (€6.3trn) in Australia and C$9trn (€5.66trn) in Canada.
Leading Canadian pension schemes are already substantial investors in Australian infrastructure, real estate and agricultural land, although Australia’s exposure to Canada is nowhere near as significant.
The initiative was launched today by leaders of the countries’ pension funds and aligned investment managers during a state visit to Australia by the Canadian prime minister, Mark Carney, who is travelling with his minister of finance and national revenue, François-Philippe Champagne.
“The [memo of understanding] supports Australian industry super funds, Canadian pension funds and their investment organisations to facilitate dialogue with governments on policy barriers and associated solutions to improve the business environment for investment in each jurisdiction and to unlock greater long-term capital for private investment on behalf of millions of working and retired people,” said IFM Investors, whose shareholders are Australian funds.
Signatories also commit to building awareness of investment models that leverage the expertise of long-term and reliable pension capital investors, with the objective of delivering risk-adjusted returns for working and retired people as well as value for investee companies.
“With a shared heritage, open and resource-rich economies, strong creditworthiness and reliable and transparent legal institutions, we believe there is fertile ground to bolster opportunities for investment between Canada and Australia,” it said.
The participating funds from Australia are Australian Retirement Trust, AustralianSuper, Aware Super, CareSuper, Cbus Super, HESTA Super Fund, Hostplus, IFM Investors and Rest Super.
Their Canadian counterparts are AIMCo Alberta Investment Management Corporation, British Columbia Investment Management Corporation, La Caisse, CPP Investment, HOOPP, Investment Management Corporation of Ontario, OMERS, Ontario Teachers’ Pension Plan and PSP Investments.
