Betermier says it’s a tough to do a correct comparative evaluation as a result of there are usually not too many funds the scale of CPP. Nonetheless, “on the whole, there’s consensus that bigger funds do higher. 

“They’re ready not solely to generate economies of scale on the advantages administration, but additionally on the investments. You might have extra capabilities when you find yourself bigger, you are able to do extra in-house investments, which is one thing the Canadian funds are pretty specialised in doing and do fairly properly. You even have better leverage in talking with third social gathering suppliers and entry to higher exterior managers.”

Nonetheless, Betermier factors out that Alberta is among the largest provinces in Canada, so it might routinely have scale. “So, in that sense, this isn’t essentially the one level the place I might be probably the most involved.”

The best menace, says Betermier, “is that if, in the end, the provinces don’t deem the capital allocation to be honest after which different provinces leap on the bandwagon and in addition doubtlessly attempt to secede, then we lose settlement consensus among the many provinces. This might result in the demise of the CPP in its entirety.

“That might be, in my opinion, a really unhealthy situation as a result of now we have, by means of the coordination of the provinces, an excellent system and one which Canadian needs to be happy with.