Until 2005, the Income Tax Act limited pension investments to 30% non-Canadian assets. ACPM had long felt that this was an unnecessary restriction that both created a cost for the Canadian economy (inefficient use of capital) and a loss of return for pension funds.
ACPM applauded the Federal Government’s 2005 budget announcement eliminating the Foreign Property Rule.
For many years, ACPM advocated for this limit to be removed. The request is found in many of our documents, especially the ACPM/PIAC Joint Study released in November 2002.