As global economic volatility intensifies and achieving asset preservation and growth becomes increasingly difficult, what allocation philosophy can transcend cycles and deliver long-term, stable growth?
For years, Noah ARK has been committed to establishing a "cognitive foundation" for Chinese wealth managers. We understand that wealth management fundamentally relies on the monetization of knowledge—success requires deep global market insights to navigate complexity with confidence. This commitment drives us to continuously monitor the evolution of markets worldwide, from North America to Europe, from emerging economies to established ones. By studying diverse financial ecosystems and learning from industry leaders, we extract timeless allocation strategies and build a comprehensive cross-border framework. This approach equips global Chinese wealth managers with the wisdom and tools they need to excel in an interconnected world.
In this global journey, the unique value of the Canadian market has become increasingly clear. Noah ARK has consistently recognized and acted on this opportunity, understanding how the maturity of Canadian institutional investors' models and global allocation expertise can benefit Chinese high-net-worth clients.
Recently, Noah Canada held closed-door wealth management summits in Toronto and Vancouver, engaging face-to-face with over 200 local wealth managers. We joined top-tier asset management giants like Brookfield to conduct in-depth discussions on core topics such as global macro trends, asset allocation, and succession.
To share these insights with more wealth managers, the "ARK Global Market Watch" series is launching a special focus on Canada. This series will analyze the country's leading institutional investors who collectively manage trillions in capital, but more importantly, we'll uncover the strategic logic that drives their success. The series will explore comprehensive themes: from fundamental asset allocation frameworks to proven risk management practices, from global strategic perspectives to specific approaches for navigating market cycles. We hope that by deconstructing the ecosystem and principles of the Canadian wealth management market, we can provide Chinese wealth managers with an "understandable, referenceable, and actionable" action guide.
This first article focuses on Canadian pension institutions. In global capital markets, institutional investors play a crucial role. They are a broad group, including pension funds, sovereign wealth funds, university endowments, family offices, insurance companies, and wealth management firms. Among these, national pension funds are undoubtedly one of the most core and influential LPs in the entire ecosystem.
Among the world's many pension funds, Canada's are not only a cornerstone of their own financial system but are considered a model globally:
Immense Scale, Leading Global Influence
The total assets managed by Canada's top pension funds rank among the largest in the world, giving them a long-term, profound influence on global capital markets.
The Unique "Canada Model"
Its core features include independent governance structures, transparent and efficient decision-making, diversified investment methods, a long-term investment horizon, and all-asset-class allocation.
Why Focus on the Pension Fund Playbook?
The answer lies in the nature of pension funds. They naturally demand long-term, stable returns as their primary goal. This objective is highly aligned with the core needs of HNW clients: to achieve wealth preservation and appreciation and to complete intergenerational succession. More importantly, the independent governance, flexible investment strategies, and broad global perspective of these pension funds provide an invaluable asset allocation template for Chinese HNW investors.
(This issue is presented by the NOAH Canada team)
Canadian Pension Funds:
A Global Benchmark for Institutional Stability
In the field of global institutional investment, the Canadian pension label has always been synonymous with "scale and quality." Take the two most representative institutions: CPP Investments and CDPQ (Caisse de dépôt et placement du Québec). Their combined net assets exceed C$1.2 trillion, with investment footprints spanning all asset classes globally.
Their success is no accident. It is rooted in a proven core logic:
·Independent Governance: Free from short-term political interference, investment decisions are guided solely by long-term returns.
·Flexible Strategy: A hybrid model combining LP investments, direct investments, and co-investments allows them to balance professional expertise with direct control.
·Long-Term Horizon: They look past short-term market volatility to focus on value growth over 5–10 years or more.
·All-Category Allocation: Coverage includes equities, credit, and real assets (infrastructure, real estate), truly adhering to the principle of "not putting all eggs in one basket."
This "Canada Model" has become a model for pension funds worldwide. For Chinese HNW investors, its underlying logic is also highly adaptable.
CPP Investments: A Practical Case Study in Globalization and Diversified Allocation
CPP Investments: A "Textbook" Case in Global Allocation
As the flagship of Canadian pensions, CPP Investments sets a textbook example with its allocation strategy. The firm manages the assets of the Canada Pension Plan with a diversified, global allocation philosophy.
As of June 30, 2025, its net assets reached C$731.7 billion. Its investment strategy covers all major categories, including public equities, private equity, bonds, credit, infrastructure, and real estate, achieving risk diversification and continuous returns through cross-regional and cross-industry allocation.
Global Allocation, Transcending Regional Limits
The institution employs a highly diversified investment strategy. Its geographic allocation covers Canada (12%), the US (47%), Europe (19%), Asia-Pacific (17%), and Latin America (5%). This "globalized net-casting" directly reduces the impact of volatility in any single market. For example, when the North American market adjusts, high-quality assets in Asia-Pacific or Europe can hedge the risk.
(Data source: CPP website)
Asset Allocation: Centered on Equities,
with Real Assets for Balance
By asset class, CPP Investments allocates over half of its funds to equity assets, 26% to credit and bond assets, and another 16% to real assets such as infrastructure and real estate.
CPPIB uses an integrated investment strategy, combining three methods: acting as an LP in top-tier GPs (General Partners), direct investments, and co-investments. This combination ensures the portfolio's diversification and stability.
(Data source: CPP website)
Private Equity Operations: Leveraging GP
Resources to Amplify Synergistic Value
In private equity, CPP Investments actively serves as an LP for top domestic and international fund managers (GPs). This includes global giants like KKR, Blackstone, Goldman Sachs, and Carlyle, as well as leading Canadian-based GPs like Brookfield, Northleaf, and Onex. The institution not only achieves diversification through fund investments but also frequently participates in specific projects via co-investment to enhance collaborative management and boost returns.
Real Asset Positioning: The Dual
Value of Cash Flow and Inflation Hedging
CPPIB invests in infrastructure and real estate globally. One of its most famous cases is the 407 ETR highway in Toronto, the world's first all-electronic toll highway and one of CPP's most iconic direct infrastructure assets.
In the UK, CPPIB invested in the Bullring Shopping Centre, one of the UK's top ten retail malls. These real asset investments provide stable cash flow and protection against inflation.
CDPQ: A Model of Synergy through GP Ecosystem Leverage and Deep Strategic Deployment
Another heavyweight institution, CDPQ, had net assets of C$496.0 billion as of June 30, 2025. It employs a diversified strategy covering equities, private equity, bonds, credit, infrastructure, and real estate, with a strong emphasis on regional distribution and local economic impact.
Geographically, its assets are concentrated in Canada (30%), the US (38%), and Europe (15%), with the remainder distributed in other global markets.
(Data source: CDPQ official website)
Private Equity Strategy: A Strategic Positioning Balancing GP Synergy and Direct Investment
In private equity, CDPQ actively partners with top international GPs like KKR, Carlyle, and Blackstone, acting not only as an LP but also frequently conducting co-investments. A typical example includes CDPQ's investment in a Carlyle fund, followed by their joint leadership of a C$6.7 billion investment in Sedgwick. Sedgwick is a leading global third-party claims management company with over 33,000 employees. This partnership fully demonstrates CDPQ's strategic capability to leverage the professional expertise and deal-sourcing resources of top-tier GPs to tap into high-quality global investment opportunities.
Overall, CDPQ's core investment strategy can be summarized as: partnering with top international GPs to leverage their professional investment capabilities and project resources, diversifying risk while participating deeply in direct investments in high-quality global companies to achieve long-term, stable asset growth.
Three Key Takeaways for Chinese Wealth Managers
The Canadian pension experience can be translated directly into an action guide for Chinese wealth management:
1. The Investor Role
As one of the world's largest institutional investors, Canadian pensions are not just massive LPs (Limited Partners). They also partner with world-class GPs through diversified investments, covering private equity, credit, infrastructure, real estate, and other asset classes. Their investment vision transcends geographical limitations, and they leverage professional institutions to reduce the difficulty and risk of autonomous decision-making.
2. A Long-Term, Stable Allocation Philosophy
The asset allocation philosophy of Canadian pensions pursues a long-term, stable return curve. This logic is highly aligned with the core wealth management demands of Chinese HNW individuals and families, achieving cross-generational wealth succession while ensuring long-term wealth appreciation.
3. The Importance of Private Assets
Pension funds allocate extensively to private assets. The core reason is that the long-term low-volatility and stable-return characteristics of private assets meet the dual needs of pensions for steady asset growth and continuous cash flow. This logic also holds significant reference value for the wealth management and cash flow planning of HNW families.
[Canada’s Top Alternative Investment GP Series] — Coming Soon
As global asset allocation shifts toward diversification, Canada—with its mature capital market ecosystem, robust risk control systems, and forward-looking industrial positioning—has nurtured a batch of top-tier GPs who are highly influential in the global asset management field.
To provide clarity for investors, we are launching the "Canada Alternative Investment Top GP Series." This series will focus on the strategic positioning, core capabilities, and investment logic of representative institutions, unlocking the "secret to success" of North America's asset management giants for you:
·Brookfield Asset Management: A leading global manager of real assets
·Onex Corporation: Canada's private equity giant
·Northleaf Capital Partners: Canada's highly distinctive alternative investment platform
Stay tuned for more insights!
