Canadian Pension Funds: Investments and Role in the Capital Markets and Corporate Governance

25 Banking & Finance Law Review 247

46 Pages Posted: 6 Jul 2012 Last revised: 30 Oct 2013

See all articles by Poonam Puri

Poonam Puri

York University - Osgoode Law School

P. M. Vasudev

University of Ottawa - Common Law Section

Date Written: February 1, 2010

Abstract

The article analyzes Canadian pension funds from the perspectives of corporate governance and the capital markets. It reviews their investment allocations and revenue patterns since the 1990s and identifies significant changes. The article finds that pension funds, as shareholders, have turned more activist and they wield considerable influence on corporate governance. They also contribute to shaping public policy, as evident from the relaxation of the rules on foreign investment and the removal of restrictions on communications among shareholders. The paper predicts that the role of pension funds will likely further expand in the future, given the constant rise in their resources and increased awareness of the need for responsible shareholder activism. Pension funds are ideally suited to be responsible shareholders who can effectively engage with the corporations, particularly in the areas of director elections and promoting corporate accountability.

Keywords: canadian, pension, funds, capital market, corporate governance, investment

JEL Classification: K20, K22, K23

Suggested Citation

Puri, Poonam and Vasudev, P. M., Canadian Pension Funds: Investments and Role in the Capital Markets and Corporate Governance (February 1, 2010). 25 Banking & Finance Law Review 247, Available at SSRN: https://ssrn.com/abstract=2099352

Poonam Puri (Contact Author)

York University - Osgoode Law School ( email )

4700 Keele Street
Toronto, Ontario M3J 1P3
Canada

HOME PAGE: http://www.osgoode.yorku.ca/faculty/Puri_Poonam.html

P. M. Vasudev

University of Ottawa - Common Law Section ( email )

57 Louis Pasteur Street
Ottawa, K1N 6N5
Canada
613-562-5800 (Phone)
613-562-5124 (Fax)

HOME PAGE: http://commonlaw.uottawa.ca/en/people/vasudev-pm

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