With geopolitical tensions on the rise, the shifting trade relationship between Canada and the U.S. and the prospect of large-scale artificial intelligence disruption heightening investor and economic uncertainty, discussion has intensified in Canada around how to improve our productivity, build major infrastructure and position our country for a changing global economy.

Canadian pension funds can play a role in advancing those objectives. Together, the largest funds manage roughly $3 trillion across a range of asset classes and there are a lot of reasons for these Canadian institutional investors to allocate more of those funds in Canada.

Domestic investments align with pension fund liabilities, which are denominated in Canadian dollars and often linked to Canadian inflation. Canadian pensions often have real advantages at home with better access to information, stronger risk assessment capabilities and more direct engagement with regulators and policymakers. In many ways, Canada is increasingly looking like an attractive place to invest thanks to its abundant resources, a stable policy environment and a highly educated workforce.

Read: Where do Canadian institutional investors stand on calls for increased domestic investments?

Roughly a third of the Investment Management Corp. of Ontario’s $90.7 billion is already invested in Canada across public and private markets, with an........

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