Canadian pension funds that are hoping for good news from today’s federal budget on infrastructure investments may soon see more competition as the British government looks to boost the homegrown presence in that sphere.
That’s according to a story in Chief Investment Officer today that noted an effort by the British government to pool the 89 local government pension schemes into six entities and create a single national infrastructure investment platform for the funds. According to the story, British public sector funds invest less than £2 billion ($2.9 billion) in infrastructure assets. That pales in comparison to investments by Canadian pension funds in Britain and elsewhere as well as institutions from Canada and the Middle East.
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“There is no reason why we shouldn’t be in a similar position in years to come,” Mike Weston, chief executive officer of the Pensions Infrastructure Platform, told Chief Investment Officer.
The British developments come as Canadian pension funds have been eyeing the possibility of participating in new infrastructure development in Canada as part of the federal Liberal government’s efforts to stimulate the economy and spur investment.
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However, as the Chief Investment Officer article notes, they may see more competition for the investments they’ve long been making in places like Britain if the national local government infrastructure investment platform touted by the British government becomes reality.