When it comes to global infrastructure investments, Canadian pension funds are at the forefront.
In fact, seven Canadian institutional investors made the list of the top 20 infrastructure investors worldwide, according to a report by Preqin Ltd.
“Between them, these top institutions have invested a total of $106 billion in the infrastructure asset class through both private fund commitments and direct investments,” the report said.
The Canada Pension Plan Investment Board holds the top spot, with $27 billion invested in infrastructure. The Caisse de dépôt et placement du Québec comes in at fifth with $18.5 billion invested. The Ontario Municipal Employees Retirement System, the Ontario Teachers’ Pension Plan, the Public Sector Pension Investment Board, the British Columbia Investment Management Corp. and Manulife Investment Management also appear in the top 20.
Institutional investors, especially Canadian ones, are zeroing in on renewable energy as a focus for their infrastructure investments, the report said.
More than half (57 per cent) of investors specified a focus on renewable energy within their mandate in 2019, up from the 42 per cent in 2018.
“Narrowing in on the current pipeline of funds in market, all Canada-based infrastructure funds are targeting renewable energy assets within North America,” the report said. “These same fund managers boast an aggregate $42 billion in [assets under management], with nearly half of this held in core-plus funds. Core and core-plus dry powder is practically inverted, though, with core funds holding $15 billion in reserves compared with only $4.1 billion in dry powder for core-plus funds.”