Chancellor Rachel Reeves is set to embark on a brief trip to Toronto next month, where she will hold talks with a group of Canadian retirement funds that have invested tens of billions of pounds into the British economy. The purpose of the discussions will be to convince these funds, which include the Canada Pension Plan Investment Board (CPPIB), Ontario Municipal Employers Retirement System (OMERS), and Ontario Teachers Pension Plan (OTPP), to support her “big bang” pension reforms.
According to sources, Ms. Reeves will engage with the Canadian funds on her recently launched review, aimed at increasing investment in the UK economy and strengthening individuals’ pension funds. This meeting will follow a reported visit by the chancellor to New York, during which she will hold talks with financiers such as Stephen Schwarzman, the CEO of private equity giant Blackstone. Ms. Reeves will then attend the G20 summit in Brazil.
In recent years, Canada’s municipal pension plans have become major players in the global finance landscape, investing in a variety of assets including infrastructure and private equity. Together, these funds have invested billions of pounds in major British infrastructure assets, particularly in the privatized water industry. However, the struggles of the water sector have resulted in significant losses for these funds and other investors. For example, OMERS, which owns a 31% stake in Thames Water, wrote off the investment as worthless in May following the company’s near insolvency.
When asked for comment on the upcoming talks, the Treasury declined to provide any information. However, it is clear that Ms. Reeves is determined to garner support for her pension reform efforts and engage with key players in global finance to achieve this goal.
