Sebastien Betermier’s Post

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Finance Professor | Executive Director

This article from Barbara Shecter in the Financial Post provides a great historical perspective into the attempts and difficulties of creating win-win partnerships between the Canadian government and pension funds on large domestic infrastructure projects over the past 10 years. #pensionfunds #infrastructure

Why the Liberals' 'dangerous' pursuit of Canada's pension billions keeps falling flat

Why the Liberals' 'dangerous' pursuit of Canada's pension billions keeps falling flat

financialpost.com

Critics of CPP or Liberal leadership or both will cite this article as evidence of political interference risk. But the substance of the article is conversely a pension industry that is unmoved by political encouragement to make certain types of investments. The pensions sound completely focused on risk and return while remaining open to good reasons and conditions for investing in Canada. That sounds right to me. The second thing is let’s be careful what we wish for with privatization. Profitable inflation-linked cash flows are great for investors, but they are paid for by customers. Likely the best argument for private capital is accountable design, build, and operations (less waste and delay). The government isn’t short of capital itself so what are we trying to achieve?

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