Political pressure impacts Canada's top pension funds
Canada鈥檚 Maple 8 pension funds are globally respected for strong returns and independence from government influence. However, recent political moves threaten this model. The federal government has encouraged more domestic investment, while Alberta鈥檚 government fired AIMCo鈥檚 board, raising fears of political interference. 鈥淲hen you start investing based on political objectives, you risk compromising returns,鈥� warns Associate Professor of Finance Sebastien Betermier. Experts argue pension funds exist solely for beneficiaries. Though Ottawa has softened its stance, concerns remain, especially about potential 鈥渄ual mandates鈥� like in Quebec. Political pressure could weaken autonomy, impacting investment performance and retirees鈥� security, he tells the Financial Post.
