Managers of the Canada Pension Plan (CPP) on Sunday would not say whether they’ll follow Prime Minister Justin Trudeau’s directive to buy Canadian amid the tariff war with the United States.
Almost half the fund’s $675.1 billion is invested in the United States, from shares in American fast food chains to ownership of Dallas apartment buildings, San Diego shopping malls and industrial parks in Florida, per Blacklock’s Reporter.
“Now is the time to choose Canada,” Trudeau told reporters Saturday.
“There are many ways for you to do your part. It might mean checking the labels at the supermarket and picking Canadian-made products. It might mean opting for Canadian rye over Kentucky bourbon or foregoing Florida orange juice altogether.”
“It might mean changing your summer vacation plans to stay here in Canada and explore the many national and provincial parks, historic sites and tourist destinations our great country has to offer.”
“It’s time to choose local products and support local businesses, to support our agricultural producers, our manufacturers, our workers, our entrepreneurs, our artists.”
“It might mean doing all of these things or finding your own way to stand up for Canada,” said Trudeau.
“In this moment we must pull together because we love this country.”
The CPP Investment Board did not comment. Only 12% of Canadians’ pension premiums, a total $77.2 billion, are invested in Canada, according to board figures.
A total $297.1 billion, 44% are in the United States followed by Asia Pacific countries, 20% and and Europe, 19%.
Canada Pension Plan buys in the US include office buildings in Houston, Seattle and Washington, DC, and apartment buildings in Atlantia, Arlington and Dallas.
The Board also put workers’ premiums in industrial parks in Anaheim, Cucamonga, Long Beach, San Fernando, Santa Fe and Teterboro, and shopping malls in Hyannis, Los Angeles, Panama City in Florida, Pentagon City, San Diego and San Jose.
The CPP Board has said its mandate is to maximize returns, not invest patriotically or follow cabinet directives.
“CPP Investments has a critical mission which is to help ensure Canadians have a strong foundation of financial security in retirement,” then-CEO Mark Machin testified at 2020 hearings of the Commons Finance Committee.
“To do so we invest the assets of the CPP with a clear objective, to maximize returns without undue risk of loss.”
“Assets of the fund are managed in the best interests of the Canadian contributors and beneficiaries who participate in the Canada Pension Plan.”
“These assets are strictly segregated from government funds, secured and managed professionally, exclusively to pay earned benefits among contributors.”
However the board did sell off investments in Chinese coal companies after cabinet mandated emissions targets under its climate program. The board as late as 2020 held $42 million in stock in China Shenhua Energy Co. Ltd., largest state-owned coal mining firm in the People’s Republic of China.
“Every single major investment we make must take into account climate change,” Machin said at the time.
