Australia, Canada Pensions Sign First Deal to Boost Investment
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Article content(Bloomberg) — More than a dozen Canadian and Australian pension giants have signed a first-of-its-kind agreement to ramp up investment between the countries, home to two of the world’s largest retirement systems. Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe initiative was announced in Sydney on Wednesday during Canadian Prime Minister Mark Carney’s visit to Australia. Under a memorandum of understanding — the first between the two systems — funds will cooperate to channel more pension capital into opportunities in both markets, according to a statement from eight of Australia’s largest pension funds.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentSignatories include AustralianSuper, which manages A$410 billion ($289 billion), and the Canada Pension Plan Investment Board, with C$781 billion ($571 billion) in assets, along with eight other major Canadian funds. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentCanada operates the world’s second-largest pension system, while Australia’s A$4.5 trillion pool is No. 4, according to the statement. Canada’s system is forecast to hit C$8 trillion while Australia’s is projected to swell to A$11 trillion by 2040.Article contentCarney’s government is seeking funding for large-scale infrastructure projects — including ports, rail and pipelines — as Canada looks to cushion its economy against US President Donald Trump’s protectionist policies. The Canadian leader has toured the globe in recent months searching for capital to help fund those ambitions.Article contentListen and follow The Bloomberg Australia Podcast on Apple, Spotify, YouTube or wherever you get your podcasts. Article contentThe new agreement is “underscoring support for ongoing cooperation between Canada and Australia in the interest of mutual value creation,” CPPIB said in a separate statement. Article contentArticle contentAustralian funds, flush with inflows from mandatory retirement contributions set at the equivalent of 12% of wages, are steadily increasing offshore investments. Roughly half of the country’s pension assets are invested abroad, a share that is expected to rise as managers pursue larger deals.Article contentThere is “fertile ground” for investment between Canada and Australia, the Australian funds’ statement said, and the agreement will facilitate dialogue with governments on policy barriers to improve the business environment for investment.Article contentThe memorandum of understanding will “unlock greater long term capital for private investment on behalf of millions of working and retired people,” it added.Article contentTrending Posthaste: Canadians are paying more than lip service to Buy Canada — and now the numbers prove it News Housing affordability improves yet again, though not for the right reasons Real Estate Heading for a mortgage default? Bank of Canada research lays out three telltale signs Mortgages Why the Canadian dollar is bearing up as the surging greenback punches a hole through other G10 currencies Economy Atlantic Canada's energy isolation is getting worse as East-West pipeline divide persists Oil & Gas Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Posthaste: Canadians are paying more than lip service to Buy Canada — and now the numbers prove it News Housing affordability improves yet again, though not for the right reasons Real Estate Heading for a mortgage default? Bank of Canada research lays out three telltale signs Mortgages Why the Canadian dollar is bearing up as the surging greenback punches a hole through other G10 currencies Economy Atlantic Canada's energy isolation is getting worse as East-West pipeline divide persists Oil & Gas