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Asset Servicing | October 6, 2025

Four Investment Trends Canadian Asset Owners are Driving Globally

Canadian asset owners – particularly the Maple 8 – are increasingly recognized as global leaders in institutional investing. As markets respond to inflationary pressures, climate risk, and digital transformation, Canada’s largest pension funds and investment boards are not only adapting—they’re influencing how others evolve. 

Drawing from the Northern Trust Asset Owners in Focus study and recent market developments, here are four key trends shaping the future of global investment, with Canadian institutions at the forefront.

1. Private markets as a strategic anchor

According to our study, 86% of global asset owners invest in private assets, but Canadian funds, with an 87% rate of investment and an average 13% allocation, were early adopters. 

Canada’s Maple 8 group of asset owners have long treated private equity, infrastructure, real estate, and private debt as core portfolio components, and much of the smaller Canadian asset owner community has followed. Our findings back that up, with 89% of Canadian respondents holding PE investments, 83% holding real estate investments, 44% holding infrastructure investments, and 29% holding private debt investments.

The Canadian model emphasizes patient capital and long-duration strategies, offering a blueprint for other global investors seeking stability in volatile markets. These investments also align with broader societal goals, such as urban development and sustainable infrastructure, reinforcing the dual mandate of financial performance and public value.

For more on how Canadian asset owners approach private markets investing, read our recent article on the topic here.

2. Diverging climate commitments and redefined governance

Canada’s pension sector is undergoing a climate crossroads. The Canada Pension Plan Investment Board (CPPIB) recently withdrew its net-zero pledge, citing regulatory ambiguity under Bill C-59, which introduces stricter anti-greenwashing standards. In contrast, CDPQ has pledged $400 billion toward climate action by 2030 and tied executive compensation to sustainability performance.

This divergence signals a growing governance gap. As fiduciary responsibilities evolve to include climate risk, Canadian asset owners are being called to clarify their positions and align their boards with long-term sustainability goals. 

The implications extend beyond Canada. Global investors are watching how Canadian funds navigate this tension between regulatory clarity and climate ambition. The decisions made today could influence how climate risk is priced, disclosed, and governed across borders.

In response, some Canadian funds are exploring hybrid approaches, such as in CPPIB’s case of maintaining climate targets while adjusting timelines and metrics to reflect evolving policy landscapes. Others are investing in transition finance, supporting companies that are actively decarbonizing but not yet net-zero.

3. Technology-powered investment operations

Artificial intelligence and data analytics are no longer just back-office tools—they’re now emerging with a larger role in investment strategy itself. Canadian asset owners are clearly grappling with the best way for their organizations to harness both data and AI. In our study, 66% said that harnessing the power of AI was a top-three internal operational challenge for their firms.

We’re also seeing industry initiatives to harness AI when modelling climate scenarios, assessing portfolio risk, and enhancing ESG scoring. The launch of Morningstar’s Canadian digital hub in June underscores this shift, offering localized tools and insights tailored to Canadian investors.

This trend reflects a broader movement toward transparency and precision. As portfolios grow more complex, technology is helping asset owners make faster and more informed decisions, especially in areas like climate stress testing and predictive modeling.

Beyond risk management, AI is also being used to optimize asset allocation, identify emerging market opportunities, and automate reporting. These capabilities can help Canadian funds stay agile in a fast-moving environment, while also meeting rising expectations for data-driven accountability.

4. Redefined risk management

With inflation moderating to 1.9% and bond yields hovering around 3.0%, Canadian funds are recalibrating their liquidity strategies. Analysts recommend increasing exposure to Canadian fixed income liquid alternatives, particularly for portfolios focused on capital preservation. According to our asset owner study, 48% of Canadian asset owners named liquidity risk as a top-three risk management metric that their firm pays most attention to.

At the same time, governance scrutiny is intensifying. Pension boards are facing pressure to disclose ties to fossil fuel industries and ensure independence in decision-making. These shifts reflect a broader trend: risk management is no longer just about market volatility, but about reputational risk, regulatory alignment, and long-term resilience.

Canadian asset owners are also exploring new tools to manage geopolitical risk, cyber threats, and supply chain disruptions. These factors are increasingly relevant to global portfolios, and Canadian institutions are taking steps to integrate them into their risk frameworks.

Stress testing is becoming more sophisticated, incorporating multi-factor scenarios that include climate shocks, political instability, and systemic financial risks. This holistic approach is helping funds prepare for a wider range of outcomes and build more resilient portfolios.

Canadian asset owners shaping future trends

As global markets face mounting complexity, Canadian asset owners are demonstrating that leadership in institutional investing requires foresight, agility, and a commitment to long-term value creation. 

Their proactive stance on private markets, climate governance, and technology integration is not only reshaping portfolios but also setting new standards for transparency and resilience. By balancing innovation with accountability, Canadian institutions are helping define what it means to invest with purpose in an evolving global asset management landscape.

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