Green Urban Development: The Impact Investment Strategy of Canadian Pension Funds

51 Pages Posted: 26 May 2021 Last revised: 6 Sep 2022

See all articles by Alexander Beath

Alexander Beath

CEM Benchmarking Inc.

Sebastien Betermier

McGill University - Desautels Faculty of Management

Maaike Van Bragt

CEM Benchmarking Inc.

Quentin Spehner

CEM Benchmarking Inc.

Yuedan Liu

affiliation not provided to SSRN

Date Written: September 03, 2022

Abstract

This paper investigates the investment strategy that large Canadian pension funds implement in the private real estate market. Even though they manage just 6% of global pension assets in our data, Canadian pension funds are responsible for 60% of the total value of private real estate deals that directly involve a pension fund. A key component of their strategy consists of internally developing and greening urban properties in core downtown areas. Using a common benchmarking methodology across funds, we show that this impact strategy delivers superior performance net of fees and drives the green development of major city centers.

Keywords: Pension funds, real estate, impact investing, sustainable finance, active management

JEL Classification: G23

Suggested Citation

Beath, Alexander and Betermier, Sebastien and Van Bragt, Maaike and Spehner, Quentin and Liu, Yuedan, Green Urban Development: The Impact Investment Strategy of Canadian Pension Funds (September 03, 2022). Available at SSRN: https://ssrn.com/abstract=3853175 or http://dx.doi.org/10.2139/ssrn.3853175

Alexander Beath

CEM Benchmarking Inc. ( email )

80 Richmond Street West, Suite 1300
Toronto ON, M5H 2A4
Canada

Sebastien Betermier (Contact Author)

McGill University - Desautels Faculty of Management ( email )

1001 Sherbrooke St. West
Montreal, Quebec H3A1G5 H3A 2M1
Canada

Maaike Van Bragt

CEM Benchmarking Inc. ( email )

80 Richmond Street West, Suite 1300
Toronto ON, M5H 2A4
Canada

Quentin Spehner

CEM Benchmarking Inc. ( email )

372 Bay St, Suite 1000
Toronto ON, M5H 2W9
Canada

Yuedan Liu

affiliation not provided to SSRN

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