Canadian pension plans put C$8.9bn (£4bn) into non-Canadian stocks and bonds in January, according to new figures from Statistics Canada.
According to Statistics Canada, the main reason was pension funds jumping at the chance to increase their international exposure following the Canadian government’s decision to raise the foreign contribution limits for pension plans from 25% to 30%.
While Canadians moved capital out of domestic securities, foreign investors made sizable purchases of Canadian stocks and bonds in January. They invested C$3.7bn (£1.6bn) in Canadian stocks and bonds while selling some of their money market holdings.
In January, the C$6.7bn (£3bn) purchase of outstanding foreign shares was a record for Canadian investors, according to Statistics Canada. Approximately half went to US shares and the remainder went to other international markets. Also, after two months of reductions, Canadian investors substantially increased their holdings of foreign bonds to C$2.2bn (£985m). The investment went entirely to US government bonds.
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