Canadian pension funds will continue to try to fulfill their real estate mandates in 2007 and are increasingly looking abroad, according to a report.
Morguard Investments Limited’s 2007 Economic Outlook and Market Fundamentals says most of their portfolios are heavily weighted domestically and they are trying to diversify.
Five of the largest pension plans, the Caisse de dépôt et placement du Québec, Canada Pension Plan, Ontario Teachers’ Pension Plan, the British Columbia Investment Corporation, and Ontario Municipal Employees Retirement System all have active global property investment programs.
Most other funds have either taken action in this direction or have near-term intentions of doing so.
In the future, it’s likely that investments outside of Canada will keep growing. However, pension funds, on average, are still short of their target real estate allocations and will continue to be buyers on the home front.
To read the report, click here.
And for more information about real estate investing, be sure to read part 6 of A trustee’s guide to alternative investments, click here.
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