Employer-sponsored pension funds are now a massive source of investment capital. So why do they not increase their role in private capital markets and in the financing of small and medium-sized enterprise (SME). The author presents the results of a survey conducted by the Canadian Labour Market and Productivity Centre with the co-operation of the Pension Investment Association of Canada. He analyzes 14 problem factors and how these barriers may yet be overcome - principally, the information- and management-intensive nature of SME lending and investment. The U.S. model of economically-targeted investment offers no panacea. A good place to start is more fact-finding and dialogue that reflects on the concerns raised by pension fiduciaries and builds on the experiences of ETI-like entities like Greystone Properties and Québec's Caisse de dépôt.