Buying a home can help you build household wealth, but renting has fewer overall costs, which allows you to save more of the money you earn. While the conventional wisdom has been that buying is the better financial decision for most people, sky-high real estate costs change the equation. Stock markets have also performed well in recent decades, and investing the surplus left over from renting can pad your personal finances in a big way—if you actually do it.
The Caisse de dépot et placement du Québec is taking a 20% stake in the Sizewell C nuclear power station in Suffolk, England. It is the UK’s first new nuclear power plant since the 1990s, and Professor Sebastien Betermier credits the government there with creating the favourable circumstances for private investors like the Caisse to take part in infrastructure development. “In this particular project, I believe the U.K.
Private market developers face an “investment catch-22” in getting infrastructure projects off the ground, Professor Sebastien Betermier wrote in a recent report for the C.D. Howe Institute. Private investors view new infrastructure markets as complex, unfamiliar, and high risk. But the infrastructure bank model can create value as a cost-efficient policy tool in the government ecosystem, Betermier concluded.
Nine of the directors who oversee Canada’s largest pension funds also hold positions at fossil fuel companies, according to a report by Pensions and Investments.
A well-designed pension system brings enormous social and economic values to its members and to society as a whole. Unfortunately, Canada’s doesn’t stand out. A 2024 report from Mercer ranks it just 18 out of 48 countries. In thefutureeconomy.ca, Prof. Sebastien Betermier proposes three measures that could help improve it by:
· Ensuring there are stronger guardrails to keep pension funds operationally independent
In Canada, investment in infrastructure has lagged, but infrastructure banks are one way to provide financing for large-scale infrastructure projects that could take decades to pay off. “Canada needs new infrastructure – housing, energy, ports – it’s all critical to our future,” says Prof. Sebastien Betermier. “But there’s a catch-22: developers can’t move forward without financing, and investors are wary of early-stage risk.
Ever since Donald Trump’s ‘Liberation Day’ tariff announcement, stock markets have been volatile. The tariffs impact thousands of companies, and with the exact scale and scope of tariffs changing almost daily, the extent to which they will be affected is uncertain. “It makes it difficult for companies to investments,” Prof. Sebastien Betermier told TVA Nouvelles. “And as long as they don’t know what will happen over the long term, it will remain difficult.”
Canada’s big pension funds are the envy of fund managers in other countries. They’re something that the UK’s defined contribution plance could aspire to, writes Padraig Floyd in Pensions Expert. “They’re all public, but they’re run like private sector corporations,” said Prof. Sebastien Betermier. "They have a governance system and delegation framework which is such that they're able to pay market salaries, so they can attract the best people.
The Trump administration’s tariffs have catalyzed a cross-country movement to buy Canadian products. But will that movement affect the how Canada’s big pension funds manage their portfolios? The eight largest pension plans in Canada hold more than $2 trillion in assets, but only about a quarter of those assets are Canadian. Some Canadian politicians and business leaders have called for our pension plans to invest more of their money at home, but government involvement in pension fund management can get in the way of these funds primary objective—to deliver returns for pension plan members.
As calls to bolster Canada’s economy intensify, the debate over pension fund strategies has gained national attention. In a Financial Post article, Professor Betermier highlights concerns over political interference in pension management and the potential long-term impact on investment strategies. He underscores the importance of maintaining pension funds’ independence to ensure strong, sustainable returns for retirees.
With increasing market volatility, Professor Sebastien Betermier shares his advice on how Quebec investors can weather economic uncertainty. In an interview with the Motnreal Gazette, he emphasizes the importance of staying disciplined, avoiding panic and hasty decisions, and consulting a financial planner before making changes. Betermier highlights the risk of overreacting to short-term fluctuations in the market and advises to focus on long-term investment goals.
According to a report by the National Insitute on Ageing, there are around 200,000 people in Canada with registered pension plans who are eligible to claim them, but haven’t. Often, the unclaimed funds stem from contributions made early in a person’s career that were simply forgotten about. “Who thinks about retirement at the age of twenty?” said McGill Desautels Professor of Finance Sebastien Betermier in an interview with CBC Radio’s Cost of Living program.
Canada’s Maple 8 pension funds are globally respected for strong returns and independence from government influence. However, recent political moves threaten this model. The federal government has encouraged more domestic investment, while Alberta’s government fired AIMCo’s board, raising fears of political interference. “When you start investing based on political objectives, you risk compromising returns,” warns Associate Professor of Finance Sebastien Betermier.
Despite BlackRock’s exit from the Glasgow Financial Alliance for Net Zero (GFANZ), climate action remains a key priority for financial institutions, says Sebastien Betermier, Associate Professor of Finance. He notes that asset managers are shifting their strategies to focus on helping firms transition to net zero rather than maintaining strictly net-zero portfolios. While GFANZ is adapting to these needs, Betermier warns that moving away from alliances could weaken collective action.