John Graham, president and CEO of CPP Investments, was a co-organizer of the Canada Investment Summit.Fred Lum\/The Globe and Mail<\/p>\n
\u201cThese are people who\u2019ve been global investors for 30 years,\u201d he added, driving the point home. One of them lives in New York. <\/p>\n
That same admission, which Mr. Graham heard a half-dozen times as he roamed the summit\u2019s sidelines, underscores the rare opening the event provided to change the minds of hundreds of global CEOs at once about Canada as a place to invest. And it shows the steep challenge the country faces to truly get in the game.<\/p>\n
The two-day summit attracted about 250 leading financial CEOs, senior executives and Canadian political leaders. They formed a dense cluster of financial firepower – about $120-trillion in assets between them – around Toronto\u2019s Four Seasons hotel on Monday and Tuesday. Roughly 80 side events were scattered around the downtown core.<\/p>\n
Open this photo in gallery:<\/a><\/p>\n Public Sector Pension Investment Board CEO Deborah Orida was part of Mr. Carney’s small steering committee that hand-picked the summit’s guest list.Carlos Osorio\/Reuters<\/p>\n Time after time, CEOs with enormous influence over the global flow of capital told Canadian politicians and business leaders they were impressed, that Canada is sending the right, investor-friendly signals and that the country\u2019s trajectory has caught their attention.<\/p>\n But they also bluntly reminded those Canadian leaders \u2013 on stage, in private, even in conversations with reporters \u2013 that what matters from now on is executing the plan. To prove its case, Canada has to deliver more investable deals and a less sluggish regulatory process.<\/p>\n \u201cFrankly, for a very long time, business investment has been slow in Canada in part because these issues around planning, permitting, approvals have impeded private investment,\u201d Shemara Wikramanayake, CEO of Australian financial services giant Macquarie Group Ltd., said in an interview. \u201cAnd I think the government is really focusing on where and how it\u2019s going to accelerate that.\u201d<\/p>\n One thing that made the summit work was its tight, invitation-only guest list. It was hand-picked by Prime Minister Mark Carney and a small steering committee that included Mr. Graham, Public Sector Pension Investment Board CEO Deborah Orida and Canada\u2019s ambassador to the U.S., Mark Wiseman. Only CEOs and the most senior executives were welcome. More than a few were turned down. <\/p>\n Police barricades are set up in the streets around the Four Seasons hotel in Toronto, where about 250 leading financial CEOs, senior executives and Canadian political leaders gathered for the two-day summit earlier this week.<\/p>\n Fred Lum\/The Globe and Mail; Laura Proctor\/The Globe and Mail<\/p>\n Aside from the event\u2019s speakers, most of the executives weren\u2019t allotted a badge for a plus-one, leaving them without handlers to chaperone them. The Four Seasons lobby was, as a result, a pasture of free-range CEOs winding their way from one meeting to the next and stopping at will for casual chats along the way.<\/p>\n They squeezed into packed elevators together, and were shooed away by rushed political staffers clearing a path for a minister to scrum with reporters. They sidestepped packs of RCMP officers and security guards patrolling the lobbies and sidewalks around Yorkville, and looked vaguely lost trying to get a table at Caf\u00e9 Boulud, a French restaurant inside the hotel. <\/p>\n The rarity of being left to their own devices notwithstanding, some of them said the summit felt comparatively intimate and focused, and that made their interactions more meaningful. <\/p>\n Open this photo in gallery:<\/a><\/p>\n Majid Al Suwaidi, CEO of UAE-based climate fund ALT\u00c9RRA, attended the summit, and expressed that Mr. Carney’s cachet was a key factor in attracting invitees.JANA RODENBUSCH\/Reuters<\/p>\n \u201cI didn\u2019t feel very overwhelmed by the event, and I think that made it, for me, much more useful than some of the other summits that I go to, where it\u2019s just a lot of people and a lot of noise,\u201d Majid Al Suwaidi, CEO of the United Arab Emirates-based climate fund ALT\u00c9RRA, said in an interview.<\/p>\n He heard the same feedback from a sizeable delegation the UAE sent to the summit, which included \u201call the right people,\u201d he said. <\/p>\n Multiple CEOs also told The Globe they were impressed with the sense of urgency in discussions they had with federal cabinet ministers, who were giving out their cellphone numbers, offering a direct line to Ottawa.<\/p>\n What are Carney\u2019s next moves after EU meetings and the investment summit? Ask us your questions<\/a><\/p>\n With the Toronto International Film Festival also soaking up hotel rooms, private places to talk were in short supply. CEOs crowded into the restaurants and bars at the Four Seasons and the Hazelton Hotel one block to the west. They met in their own hotel rooms. And they gathered on the outdoor patio of Sassafraz, a staple restaurant in the upscale Yorkville neighbourhood, talking over the racket from street-level construction nearby. <\/p>\n At restaurants, they waved away menus and servers offering to take drink orders, content with tap water and mindful that their next 30-minute meeting was fast approaching.<\/p>\n Open this photo in gallery:<\/a><\/p>\n Mr. Carney has forged a reputation as a pragmatic leader throughout his high-profile career in global banking and finance.Laura Proctor\/The Globe and Mail<\/p>\n Some global CEOs treated the summit primarily as a chance to meet existing clients and other international investors, and maybe even hunt for a few new ones. But others said they could see their global peers elsewhere, and came with a more specific mission in mind.<\/p>\n Lennart Blecher, chairperson of EQT Real Assets, an arm of US$389-billion Swedish asset manager EQT Group<\/a>, estimated that 95 per cent of his meetings at the summit were with Canadian counterparts. \u201cAbsolutely. Every half an hour we have a new meeting, and mostly with Canadian partners, potential partners,\u201d he said.<\/p>\n Mr. Carney was part of the attraction. In his career as a central bank governor in Canada and Britain, at Goldman Sachs and more recently at Brookfield Asset Management Ltd., he built close relationships with several of the summit\u2019s guests and a reputation<\/a> as a pragmatic leader who is cool in a crisis. <\/p>\n \u201cPeople came because it\u2019s Mark Carney asking them,\u201d Mr. Al Suwaidi said.<\/p>\n Cohere CEO Aidan Gomez and Managing Partner of Inovia Capital Chris Arsenault speak about building and backing global AI companies from Canada at the Canadian Global Growth Forum on Monday. In addition to the main summit program, some 80 side events dotted the downtown core.<\/p>\n Fred Lum\/The Globe and Mail<\/p>\n Manitoba Premier Wab Kinew speaks to chair of the Council of Canadian Innovators Jim Balsillie and UAE Ambassador to Canada Abdulrahman Ali Al Neyadi at the Canadian Global Growth Forum. <\/p>\n Fred Lum\/The Globe and Mail<\/p>\n Former prime minister Stephen Harper delivers the closing keynote speech at the Canada Investment Summit. Mr. Harper expressed support for the government’s decision to walk away from trade talks with the U.S.<\/p>\n Nathan Denette\/THE CANADIAN PRESS<\/p>\n Annette Mosman, CEO of \u20ac639-billion Dutch pension fund APG Group, told a group of reporters she felt \u201cinspired and also energetic because of his leadership.\u201d<\/p>\n Canada\u2019s trade war with the U.S., which escalated rapidly in the days before the summit, and U.S. President Donald Trump\u2019s use of tariffs as a cudgel promised to loom large. But for most of the event it wasn\u2019t a central topic, at least on the surface, except by inference when investors praised Canada\u2019s stability and rule of law, or its goal to expand and vary its economic ties abroad. <\/p>\n Virtually every major U.S. investor who was invited made the trip, and very few dropped out, as some had feared might happen. <\/p>\n The summit drew no obvious reaction from Mr. Trump. In the lead-up, some top executives quietly wondered whether his administration might deliberately do something to distract from the spotlight the event created for Canada. <\/p>\n Many investors were quick to say Canada\u2019s decision to react by reaching out to the world is the sensible one.<\/p>\n \u201cIt will be sorted out, I\u2019m absolutely convinced,\u201d EQT\u2019s Mr. Blecher said of the trade war. \u201cThis is just temporary.\u201d<\/p>\n Open this photo in gallery:<\/a><\/p>\n Shemara Wikramanayake, CEO of Australian financial services giant Macquarie Group, met with Mr. Carney at the summit.Arlyn McAdorey\/Reuters<\/p>\n But they were equally quick to brush aside the impact of the U.S. administration\u2019s unpredictable record. In one-on-one interviews, when investors were asked if they are more hesitant about the risk and return in making new investments in the U.S. \u2013 and whether that gives Canada a relative edge \u2013 three global CEOs who manage a combined $1.5-trillion gave the same, succinct answer: No.<\/p>\n Nonetheless, executives are well aware that it can\u2019t hurt to diversify.<\/p>\n \u201cNever count out the U.S.,\u201d Mark Benedetti, the Canadian-born, U.S.-based CEO of French asset manager Ardian said in an interview. <\/p>\n \u201cThe U.S. is a big, important market for us. We\u2019re going to keep investing there, keep growing there, and every institutional investor in the world is going to keep doing that,\u201d he said. \u201cBut as good stewards of capital, diversification is important.\u201d<\/p>\n Mr. Benedetti was one of several CEOs who spent time with Mr. Carney while they were in Toronto. Macquarie\u2019s Ms. Wikramanayake met with him Monday. And that same day, the Prime Minister had lunch with about a dozen executives, a U.S.-based private equity CEO said. <\/p>\n As the summit unfolded, Mr. Carney made public announcements that seemed tailored to show investors that Canada is already taking concrete steps to address their main pain points. The news was tightly guarded to ensure maximum impact. Even Mr. Graham and Ms. Orida, as co-organizers, weren\u2019t told what the Prime Minister would reveal until the night before, Ms. Orida said in an interview. <\/p>\n Open this photo in gallery:<\/a><\/p>\n Mr. Carney delivers the keynote speech to global financial leaders at the Canada Investment Summit on Tuesday.Carlos Osorio\/Reuters<\/p>\n In a speech opening the summit on Tuesday, Mr. Carney revealed the productivity mega deduction<\/a>. The expanded, permanent tax incentive (which, he joked, got its name because Ottawa had already used \u201csuper deduction\u201d for a narrower measure announced last year<\/a>) allows companies to immediately write off the full cost of an array of new capital investments in assets such as mining property, oil and gas pipelines, software, aircraft and vehicles.<\/p>\n A government chart that accompanied the news trumpeted that Canada is now \u201cmore tax competitive than the U.S. across all major sectors of the economy.\u201d A day earlier, Ottawa said it will fast-track advance tax rulings for investments above $1-billion to give investors more certainty<\/a>.<\/p>\n Several investors said the tax measures on their own aren\u2019t likely to make major foreign capital flock to Canada, but the changes reinforce a more pro-investment approach and could help move the needle when they evaluate deals. <\/p>\n In the same speech, Mr. Carney said the government will open up its four largest airports to private investment<\/a>, raising \u201ctens of billions of dollars of proceeds\u201d through long-term agreements but keeping underlying ownership. <\/p>\n Open this photo in gallery:<\/a><\/p>\n Mr. Carney announced plans to open Canada’s four largest airports, including Montreal-Trudeau International Airport, to private investment while retaining ownership of the underlying land and assets.Christinne Muschi\/The Canadian Press<\/p>\n Canada\u2019s largest pension funds have been calling for Ottawa to sell stakes in airports for years<\/a>, and it was obvious that global investors are interested. Ms. Wikramanayake and Ms. Mosman both predicted that foreign investors will have a chance to make bids. <\/p>\n \u201cLocal investors will probably partner and play a role, but the capital needed is going to be huge,\u201d Ms. Wikramanayake said.<\/p>\n Aside from airports, CEOs showed keen interest in investing in digital and energy infrastructure, including data centres and clean energy projects, as well as power transmission and transportation.<\/p>\n Several CEOs said another line that Mr. Carney repeated at the summit had caught their attention. \u201cFor projects and supply chains, our standard will be simple: One project, one review, one year,\u201d he said in his Tuesday address. <\/p>\n \u201cI really perked up,\u201d Mr. Al Suwaidi said. \u201cThat could be something that would make a big difference.\u201d<\/p>\n Mr. Carney said at a Friday caucus meeting that the government will move forward with legislation<\/a> to help speed the approval of new federal projects after the House of Commons returns from its summer break on Monday. <\/p>\n Large Canadian banks and pension funds also announced pledges<\/a> to increase their investment in Canada around the summit, including CPPIB and Brookfield jointly creating a $50-billion Maple Fund<\/a>. But the flurry of announcements did not include any from major global investors about significant deals or commitments to invest in the country.<\/p>\n Mr. Carney wants to move quickly to make projects ready for investment, and he was expected to meet Friday with the Major Projects Office after returning from Strasbourg, France, where he opened the door to making Canada an \u201cassociate member\u201d of the European Union.<\/p>\n The test now will be whether global CEOs and chief investment officers return home and instruct teams to take a harder look at Canadian projects and deals. Canadian-based CEOs said several of their global counterparts acknowledged their exposure to Canada is likely lower than it should be.<\/p>\n One promising sign, CPPIB\u2019s Mr. Graham said, is that the CEOs who were visiting Canada for the first time \u201calways end that conversation with: \u2018And I\u2019ll be back.\u2019\u201d<\/p>\n![](\"https:\/\/www.theglobeandmail.com\/resizer\/v2\/BZVX6CLDBBEPHMMO5ORIYCRVUQ.jpeg?auth=ae1cd4ecc18507ed4ab6fe2989b4aeca7fefd97c272d9952404765c8d87da4c1&width=600&height=400&quality=80&smart=true\")
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