With the elimination of the Foreign Property Rule in the federal budget, Canadians have joined the ranks of countries that can invest their pension money freely in the world market. But some countries do impose restrictions and keep their investments at home:

Non-Euro investments and foreign property limited to 50% of investments.

All assets must be located in Belgium or EU countries, but may be invested in securities issued by institutions authorized by the Belgian Banking and Financial Commission.

Foreign content is limited to 20% of investments.

30% in EU equity, 25% in EU property, 6% in non-EU equity, 5% in non-EU bonds.

Only OECD(Organization of Economic Co-operation and Development) securities up to a maximum of 50%. Foreign investment prohibited for nurses’, farmers’, and seamen’s investment funds.

Limited to 10% of assets.

10% limit on securities issued by non-resident firms

Law does not permit investment in foreign securities. Pension funds can invest up to 10% of their assets in foreign currency denominated securities.

Only 5% of employee pension funds or open pension funds(which are mandatory)can be invested outside of the country.

Overall limit of 20%. Sublimits: 10% in non-OECD bonds, 3% in non-OECD stocks.

There is an overall limit in foreign currency investments of 30% and a 30% limit in equities and 20% limit in foreign currency bonds.

Source: Organization of Economic Co-operation and Development.

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Copyright © 2020 Transcontinental Media G.P. This article first appeared in Benefits Canada.

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