Canada’s largest pension funds are joining an initiative that aims to boost pension investments between Canada and Australia.
The Canadian-Australian Pension Funds Investment Initiative, announced Wednesday during Prime Minister Mark Carney’s visit to Australia, will create a framework for pension funds in the two countries to discuss policy barriers and associated solutions to improve the current business environment.
The agreement includes participation from the Alberta Investment Management Corp., the British Columbia Investment Management Corp., the Caisse de dépôt et placement du Québec, CPP Investments, the Healthcare of Ontario Pension Plan, the Investment Management Corp. of Ontario, the Ontario Municipal Employees’ Retirement System, the Ontario Teachers’ Pension Plan and the Public Sector Pension Investment Board.
The participating Australian pension funds include the Australian Retirement Trust, AustralianSuper, Aware Super, CareSuper, the Construction and Building Unions Superannuation, HESTA, Hostplus and the Retail Employees Superannuation.
“We seek to contribute our experience, knowledge and relationships to the mutual benefit of CAP Invest Initiative participants, as this initiative upholds constructive engagement that will help support stable, investable markets over the long run,” John Graham, president and chief executive officer at CPP Investments, said in a press release.
The deal, which was facilitated by IFM Investors, will also require building awareness of investment models that leverage the expertise of long-term and reliable pension capital investors, according to a press release.
“I’m proud of the strong relationships our team has built in Australia and excited about the role we can continue to play through this initiative,” Deborah Orida, president and CEO at PSP Investments, said in a statement. “For more than a decade, Australia has been an important market for us.”
This agreement will build the natural partnership between the two countries and putting long-term pension capital to work in both countries, said Ken Luce, executive director Canada at IFM Investors, in an emailed statement to Benefits Canada.
“Both countries have world-leading pension systems and stable, open economies. There’s a real opportunity to deepen collaboration, address barriers where they exist and make it even easier to invest long term in opportunities that benefit working and retired Canadians and Australians alike.”