Canada Launches Bold Sovereign Wealth Fund for Citizen Investors
OTTAWA - Prime Minister Mark Carney has announced the creation of a national sovereign wealth fund, claiming it will spread benefits from major projects to all Canadians as his government drives to lessen Canada's dependence on the U.S.
Called the "Canada Strong Fund" - after the Liberals' political slogan - it will initially be endowed with $25 billion to buy public equity stakes "alongside the private sector in nation-building projects," Carney said.
It will also invite investment by individual Canadians, the prime minister said, suggesting that latching onto this as an investment "opportunity" is akin to other consumer actions Canadians have taken, like avoiding travel or vacations in the U.S., or choosing to eat, drink or buy Canadian-made products.
Pointing to his government's push to advance projects in energy, trade, critical minerals, transportation and data to lessen Canada's dependence on the U.S., Carney said Canadians have made clear by their actions they want to participate in myriad ways to make the country "stronger, more resilient, and more independent."
"And if you have a bit of extra money, we'll make it easy for you to invest in the fund to help build Canada strong for all," Carney said.
Sovereign wealth funds are currently run by countries including Norway, which has one worth about US$2 trillion, China ($1.5 trillion), and several oil-rich Middle East countries.
Conservative Leader Pierre Poilievre later mocked the government's proposal, saying "you need to have wealth for those funds."
"Norway, Singapore and Saudi Arabia run big budget surpluses, which they accumulate and then put in to their sovereign wealth funds," said Poilievre. "Carney has no surplus and therefore no wealth to put in such a fund. He's talking about a sovereign debt fund."
"He wants to put another $25 billion on the national credit card to gamble on a Liberal slush fund that will enrich Liberal insiders at the expense of hard-working Canadians."
Saskatchewan Premier Scott Moe told reporters he supports the concept of a national sovereign wealth fund, and has considered a provincial version.
However, Moe emphasized that the way to attract private sector investment into projects that would make Canada an energy superpower, as Carney wants, is to "fix some of the wrongs that have been introduced in the regulatory environment."
"A sovereign wealth fund is essentially a national savings and investment account," said Carney. "It's designed to grow wealth for future generations of Canadians."
However major projects built in Canada, in the past, have provided financial returns "only to those who built and ran them," whereas the new fund will allow more direct returns to come back to Canadians, he said.
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