Quebec Premier Francois Legault is intensifying pressure on the province's massive pension fund to significantly increase its local investments, particularly in key sectors like manufacturing and critical minerals. This strategic push comes as Canada adapts to evolving trade barriers from the United States.
Ambitious Investment Targets for Quebec's Future
The Caisse de Depot et Placement du Quebec, which manages $496 billion in assets as of June 2025, currently plans to have $100 billion invested within Quebec by next year. This represents approximately 20% of its net assets, maintaining similar proportions to previous years. However, Premier Legault, who has led the province since 2018, insists this level of local investment remains insufficient for Quebec's economic needs.
During a recent presentation, Legault emphasized that "The Caisse de depot is doing more than it did seven years ago, but they need to do even more." The government is actively discussing this matter with the pension fund's management to establish a new "ambition target" for 2030, as outlined in the government's economic vision document titled "Quebec Power: Answer to a New World Context."
Strategic Focus on Manufacturing and Critical Minerals
In a revealing interview with Montreal-based La Presse, Legault elaborated on his expectations, stating that La Caisse must embrace "calculated risks" in strategic sectors including manufacturing and critical minerals. This approach reflects the premier's concern about external economic pressures, particularly from the United States.
"The situation is critical," Legault asserted. "Donald Trump's policies pose a risk to the standard of living of future generations. But at the same time, there are opportunities." This statement underscores the dual challenge and potential that Quebec faces in the current global economic landscape.
Balancing Returns and Provincial Development
The Caisse de Depot faces the complex task of balancing its dual mandate: generating returns for Quebecers' retirement savings while contributing to the province's economic development. Importantly, the legislation governing the institution explicitly states that it must maintain operational independence.
A Caisse spokesperson addressed these competing priorities in an emailed statement, noting: "We clearly have a competitive edge here — we know the market, we know our companies and we can deploy capital across the full spectrum of financing solutions. That said, investing the hard-earned money of Quebecers means we must keep responsibility front of mind. We need businesses to launch projects that benefit the economy and at the same time help protect and grow Quebecers' retirement savings."
This investment strategy shift occurs against a challenging political backdrop for Legault's nationalist Coalition Avenir Quebec party, which has experienced declining poll numbers approximately one year before the anticipated provincial election. The premier's recent policy initiatives, including this economic vision and controversial measures to increase doctor productivity, appear designed to revitalize the party's popularity.
