Maple Eight
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The Maple Eight (Maple-8 or Maple 8) refers to the largest eight Canadian pension funds. The investment approach used by the Maple-8 is known globally as the 'Canadian model', in which they utilize a direct investment approach and internally manage their own assets and portfolios. Collectively, the pension funds control approximately $2.2T [1] in assets, and are heavily influential in Canadian and global investment markets.
| Pension Plan | Acronym | Est. | Sponsor | Crown Corp | AUM[3][4] |
|---|---|---|---|---|---|
| Canada Pension Plan Investment Board | CPPIB | 1997 | Federal & Provincial | Y | $675.1B [5](November 2024) |
| Public Sector Pension Investment Board | PSP | 2000 | Federal Government | Y | $264.9B
(December 2024) |
| Caisse de depot et placement du Quebec | CDPQ | 1965 | Government of Quebec | Y | $434.0B
(December 2023) |
| Alberta Investment Management Corp. | AIMCo | 2008 | Government of Alberta | Y | $160.6B
(2023) |
| British Columbia Investment Management Corp. | BCImc | 1999 | Government of British Columbia | Y | $233.0B
(March 2023) |
| Ontario Teachers Pension Plan | OTPP | 1990 | Government of Ontario & Ontario Teacher's Federation | N | $247.5B
(2023) |
| Healthcare of Ontario Pension Plan | HOOPP | 1960 | Ontario Hospital Association and Unions | N | $112.6B
(2023) |
| Ontario Municipal Employees Retirement System | OMERS | 1962 | Various government agencies and unions in Ontario | N | $128.6B
(2023) |
History
[edit]In 1986, when the Government of Ontario sought to improve its public sector pension plans, investment strategist Keith Ambachtsheer recommended Peter Drucker's model, as outlined in his 1976 book, "The Unseen Revolution”.[6][7] Drucker posited creating a more diversified, globally oriented investment portfolio, handled by hired, not appointed, non-political professionals who received competitive remuneration, would lead to higher returns. The Ontario Teachers' Pension Plan was the first to adopt the model in 1990 then other pension plans followed. In 2012, then president of the Canada Pension Plan Investment Board, David Denison, stated, "Canada’s system was ranked fifth best in the world in the Mercer Global Pension Index study for 2011. In truth, Canada’s high ranking has more to do with the woeful state of many other countries’ retirement systems than the robustness of our own." He added that there was room for improvement but the Maple-8's sophisticated, in-house investment model saved money.[8] Ambachtsheer has stated the costs are average but the Canadian model generates a higher 10-year return compared to other funds.[9] At a 2024 symposium, OMERS president, Blake Hutcheson, stated the top Canadian pensions were not a monolith, as suggested by the term 'Maple-8,' and each investment board was unique.[10] In 2024, Mercer ranked Canada's system at 17th, down from 12th in 2023.[11][12]
The term 'Maple-8' evolved from an article in The Economist titled "Maple Revolutionaries" which originally discussed the Top Ten pension plans in Canada.[13]
Canadian Allocations
[edit]There has been much focus on the Maple-8's allocation to Canadian investments. Although the federal government is not involved in the operation or investment strategies of these funds, they have expressed a desire to allot more capital to Canadian investments, with suggestions of a minimum allocation. Pensions argue that their global investment strategies allow them to stabilize their returns, discovering alpha in other markets and hedge against any volatility in the Canadian market, while bringing international capital into Canada.[14][15]
References
[edit]- ^ "Canada's Maple 8 public pension funds share lessons with U.K. counterparts". Pensions & Investments. 2025-03-13. Retrieved 2025-03-13.
- ^ Campbell, Kyle (2024-06-30). "Deep Dive: Canada's Maple 8 hit an inflection point". PERE. Retrieved 2025-03-13.
- ^ O'Leary, Katie (2025-02-13). "The Success of the Canadian Model and Maple 8". Chronograph. Retrieved 2025-03-19.
- ^ bmcgovern (2024-06-21). "How the investment strategies of the Maple 8 impact the decisions of medium- and small-sized plan sponsors". Benefits Canada.com. Retrieved 2025-03-19.
- ^ "Home". CPP Investments. Retrieved 2025-03-13.
- ^ Rotman School of Management. "Keith Ambachtsheer". University of Toronto. Retrieved June 21, 2025.
- ^ https://corpgov.law.harvard.edu/2022/12/08/how-peter-drucker-revolutionized-canadas-public-sector-pension-system-lessons-for-americans/#more-152764
- ^ https://www.cppinvestments.com/wp-content/uploads/migrated/documents/772/David_Denison_Speech_to_CD_Howe_Institute_June_7_2012_5DBMolW.pdf
- ^ https://www.top1000funds.com/2017/08/the-value-of-the-canadian-model/
- ^ https://www.top1000funds.com/2024/06/canadas-maple-8-couldnt-be-more-different-says-omers/
- ^ https://rpc.cfainstitute.org/sites/default/files/-/media/documents/article/industry-research/mercer-global-pension-index-2024.pdf
- ^ https://www.mercer.com/en-ca/about/newsroom/mercer-cfa-institute-global-pension-index-2023/
- ^ https://www.cppinvestments.com/newsroom/cppib-bcg-2016/#:~:text=Canada's%20top%20ten%20public%20pension%20funds%20among%20the%20largest%20in%20the%20world,-2%20Minute%20Read&text=Heralded%20as%20%E2%80%9CMaple%20revolutionaries%E2%80%9D%20by,unique%20approach%20to%20investment%20management.
- ^ "'Buy Canada' hits $2.3 trillion money pot as Trump stokes anger". BNN Bloomberg. March 11, 2025. Retrieved 2025-03-19.
- ^ "Home Bias: Do Canadian Pensions Need to Invest More in Canada?". Chief Investment Officer. June 14, 2024. Retrieved 2025-03-19.
- ^ "The Canadian model". Hymans.co.uk. Retrieved March 19, 2025.