markets

Fund Manager Says Canadian Energy Needs Action, Not ‘Selfies and Bro Hugs’

Justin Trudeau takes a selfie photograph with high school students after speaking at the Fortune's Most Powerful Women conference 2017.

Photographer: Zach Gibson/Bloomberg

Despite reassurances from Canadian Prime Minister Justin Trudeau, Kinder Morgan Canada Ltd.’s decision to suspend most work on its Trans Mountain Expansion Project signals a “total loss of confidence” in Canada’s investment climate, according to Ninepoint Partners senior portfolio manager Eric Nuttall.

“The time for studies, selfies, and bro hugs is over. We need action. Capital is fleeing our country at the fastest pace in history and will have severe long term consequences. When will we stand united as a country and say ‘no more’?,” Nuttall wrote in LinkedIn post Monday.

Kinder’s decision comes as pipeline, regulatory and political frustrations have reached new heights in Canada. A dearth of pipeline capacity has depressed Canadian oil and natural gas prices and a new regulatory regime is seen delaying projects. The iShares S&P/TSX Capped Energy Index ETF, which tracks Canadian energy companies, has seen about $77 million in outflows this year.

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