Green Urban Development: The Impact Investment Strategy of Canadian Pension Funds
40 Pages Posted: 26 May 2021
Date Written: May 24, 2021
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 direct real estate deals involving a pension fund. Their portfolio strategy combines global asset diversification with a local impact strategy that consists of internally developing and greening urban properties. Using a common benchmarking methodology across funds, we show that this strategy delivers superior performance net of fees and drives the green development of major city centers.
Keywords: Pension funds, active management, real estate, sustainable investing
JEL Classification: G23
Suggested Citation: Suggested Citation