April 22, 2026 — Canadian institutions are planning a major pullback from domestic stocks, with assets expected to shift mainly into global passive equities and alternatives.

In both active and passive Canadian equities, a quarter of Canadian institutional investors are planning a significant reduction in portfolio allocations, according to the results of Crisil Coalition Greenwich’s most recent Canadian Institutional Investors Study.

Not a single institution participating in the study is planning to meaningfully increase allocations to passive Canadian equities, and only 8% of participants plans to significantly increase allocations to active Canadian equities.

Assets Moving to Private Markets 
Some of the assets from those reductions will find their way to traditional asset classes. For example, about 30% of institutions are planning large increases to passive global equity allocations.

“Many of the assets shifting out of Canadian equities will move to alternative asset classes,” says Crisil Coalition Greenwich Global Co-Head of Investment Management, Mark Buckley. “Private markets are making up a bigger part of institutional portfolios in Canada and around the world, and Canadian institutions are clearly committed to increasing exposure further in the next three years.”

Roughly a third of Canadian institutions plan to significantly expand allocations to private credit in the next three years and 36% are planning major increases to private infrastructure equity. In both cases, fewer than 10% of institutions are planning significant reductions.

The picture is more nuanced in private equity. In that asset class, an impressive 38% of Canadian institutions are planning big increases in allocation, but roughly a quarter are planning significant reductions.

Institutions Call for More Transparency from Private Market Managers
As institutions build allocations to these higher-alpha alternatives, the shifting composition of portfolios is having an impact on expected returns. Canadian institutions increased five-year return expectations for portfolio assets to 6.1% in 2025 from 5.9% in 2024, according to the results of Crisil Coalition Greenwich’s most recent Canadian Institutional Investors Study.

The expanding presence of private assets is also having an effect on Canadian institutions’ relationships with asset managers. Because private assets are illiquid, less transparent and have other unique characteristics, building and maintaining an allocation to private markets poses new sets of challenges for institutions.

“Canadian institutions are calling on asset managers in private markets to report more frequently, communicate more clearly and otherwise increase transparency,” says Noam Cotton, Relationship Manager at Crisil Coalition Greenwich.

Canadian Investors Rotate to Global Passive and Alternatives covers select insights from the Coalition Greenwich Voice of Client – 2025 Canadian Institutional Investors Study.