If the long-delayed Canadian federal budget announced in February is approved, foreign content limits on Canadian institutional pension funds and private tax sheltered retirement plans could be scrapped, enabling funds to buy more foreign securities and encouraging international fund managers to enter the Canadian market.
Canadian funds are currently required to cap overseas assets at 30% of their portfolios. If the budget is passed, these funds will be able to invest where they like. As Canadian funds have traditionally used their foreign allocation to seek out enhanced returns, focusing their domestic investments on safe...
