Canadian institutional investors are planning a major pullback from domestic stocks, with assets expected to shift mainly into global passive equities and alternatives, according to a new report by Crisil Coalition Greenwich.
The report, which is based on interviews with more than 140 institutional investors in Canada conducted between February and September 2025, found in both active and passive Canadian equities, a quarter of institutional investors are planning a significant reduction in portfolio allocations.
Not a single institutional investor said they’re considering meaningfully increasing allocations to passive Canadian equities, and only eight per cent said they plan to significantly increase allocations to active Canadian equities.
Read: Canadian institutional investors allocating 3% to domestic equities: report
Some of those assets will find their way to traditional asset classes, according to the report, as roughly 30 per cent of respondents said they’re planning large increases to passive global equity allocations.
A third of institutional investors reported wanting to significantly expand allocations to private credit in the next three years and 36 per cent said they’re planning major increases to private infrastructure equity. In both cases, fewer than 10 per cent of institutions were planning significant reductions.
Looking at private equity, 38 per cent reported planning big increases in allocation, but roughly a quarter were planning significant reductions. Additionally, institutional investors increased five-year return expectations for portfolio assets to 6.1 per cent in 2025 from 5.9 per cent in 2024.
“Many of the assets shifting out of Canadian equities will move to alternative asset classes,” said Mark Buckley, global co-head of investment management at Crisil Coalition Greenwich, in a press release. “Private markets are making up a bigger part of institutional portfolios in Canada and around the world, and Canadian institutions are clearly committed to increasing exposure further in the next three years.”