Canada launches first sovereign wealth fund

The Canada Strong Fund will invest in nation-building projects, with a seed investment from the Canadian government of $25 billion. It will also launch a retail investment product.

Canadian Prime Minister Mark Carney announced the launch of the Canada Strong Fund, the nation's first sovereign wealth fund, which will strategically invest alongside the private sector to boost Canada's economy.

The government will commit $25 billion over three years, with the government to consider committing more as it grows.

It's intended the fund will focus on projects like new ports, mines, and trade and energy corridors to unlock the country's resources, secure domestic supply chains, and enable it to sell to new markets across Canada and the world, the government said.

The projects will focus on clean and conventional energy, critical minerals, agriculture, and infrastructure, it said.

All returns will be reinvested in the fund; it will direct its capital into investments with the highest potential returns.

At the same time, and to help capitalise the fund, a retail investment product will be launched to ensure Canadians can share in the returns by investing some of their own savings into the fund. The government will consult on the exact design of this product, but the aim is to give Canadians a direct stake in the nation's long-term wealth, it said.

It said, over time, the government will consider other sources of capital for the fund.

"Canada's new government is catalysing a series of nation-building projects in energy, trade, critical minerals, transport, data, and beyond - projects that will make Canada stronger, more resilient, and more independent," Carney said.

"Through the Canada Strong Fund, all Canadians will have the opportunity to share directly in these benefits. This is our country, this is your future, and we are building it together."

A dedicated office will be established to oversee the Canada Strong Fund, which will develop and finalise its investment mandate and that of the retail product. It will operate at arms-length from the government, with a chief executive and independent board of directors to be appointed.

"Canada's next chapter of growth starts with investing at home. The Canada Strong Fund will invest in key, strategic Canadian projects and companies, creating good-paying jobs, supercharging innovation, and keeping Canada competitive in a rapidly changing world," minister of finance and national revenue François-Philippe Champagne said.

"Importantly, Canadians themselves will have the opportunity to invest in the fund, giving them a direct stake in our country's growth and the ability to share in its success. This fund is a powerful example of how we're investing today to build tomorrow's productivity, growth, and shared prosperity."