How Is Your Canadian Pension Plan Invested? Part 2 of 2
- Olu Olu
- 6 days ago
- 2 min read
When Canadians think about investing, it’s common to focus on what’s familiar like the Canadian stock market, local real estate, maybe a few big U.S. companies. But the Canada Pension Plan Investment Board (CPPIB), which manages retirement funds for millions of Canadians, doesn’t stop at our borders. Their approach tells us something important: diversification isn’t just about what you invest in, but also where.
CPP Investments: A Global Strategy
As of September 30, 2025, here’s how CPP Investments allocates its assets geographically:
Region | Allocation |
United States | 47% |
Asia Pacific | 19% |
Europe | 17% |
Canada | 12% |
Latin America | 5% |
What This Means for You
Nearly 90% of CPP’s investments are outside of Canada. Why?
Because true wealth resilience comes from geographic diversification which helps to reduce the exposure to the economic ups and downs of any one region.
While Canada is stable, it makes up less than 3% of the global stock market. So if all your investments are local, you’re missing out on:
Faster-growing economies in Asia Pacific and Latin America
Innovation hubs in the U.S.
Diversified sectors in Europe
Diversification Is Not Optional — It’s Essential
Putting all your investments in one country is like putting all your eggs in one basket.
A global portfolio spreads risk and opens you up to more opportunities.
Ask yourself:
Do your investments span multiple global markets?
Are you capitalizing on growth in emerging and developed economies alike?
Is your portfolio protected from a Canadian downturn?
Build Your Own Global Strategy
You don’t need a billion-dollar pension fund to diversify like one. You just need a plan and access to the right tools.
As a financial advisor, I help clients:
Add global exposure through ETFs, stocks, and risk-balanced opportunities
Align investment risk with personal goals
Build portfolios that mirror the resilience of institutional investors
Reach out to review your current portfolio, uncover where you're overexposed and discover where global opportunities may be waiting. You can also read some related blogs on financial planning, managing finance and canadian financial realities.
If you need more of these wealth accumulation and risk management guidance - Let’s Talk. I help clients across Canada build sustainable financial plans rooted in clarity and confidence.
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