In the upcoming fall economic update, the federal government in Ottawa plans to announce that it is removing the investment cap that restricts Canada’s pension funds from owning more than 30% of the voting shares of a Canadian company.
The government is removing the investment cap to make it easier for Canadian pension funds to make significant investments in Canadian companies.
Canada-based pension funds have over $3 trillion in assets under management.
Ottawa is planning to announce other investment measures in the fall economic update, including a fourth round of the Venture Capital Catalyst Initiative with $1 billion in funding available in 2025-26.
The federal government will also provide up to $1 billion to invest in mid-cap growth companies and unlock up to $45 billion in loan and equity investments for artificial intelligence (A.I.) data centre projects across the country.
The federal government also plans to consult airports and pension funds on ways to incentivize investment on airport lands, such as by making changes to airport authority ground leases.
The federal government has said that it is making these changes as Canada is “in a global fight for capital.”
The investment initiatives also come amid weakening foreign direct investment, soft capital markets, a slumping economy, and deepening productivity challenges in Canada.
The fall economic update will be delivered in Parliament later today (Dec. 16).