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Governments across several countries are urging pension funds to increase domestic investments, but success hinges on offering sufficiently attractive, well-governed opportunities.

S茅bastien Betermier, Associate Professor of Finance at 91黑料网, notes that while this trend spans Canada, Europe, and Asia, poorly designed mandates could undermine returns and compromise decision-making independence. 鈥淚f you force an investor to buy domestic assets that are not suitable, they may have to forgo attractive opportunities abroad, distorting the portfolio鈥檚 risk-return profile,鈥� he says. He adds that investments must be sizable enough to justify due diligence and be supported by strong governance and investor rights, particularly in private markets.

With pension funds favouring operational assets over construction projects, Betermier suggests governments expand the range of attractive domestic investment opportunities and use incentives to encourage pension funds to invest at home.聽