Prime Minister Mark Carney says Canada will launch its first ever national sovereign wealth fund, an investment account that he says will ensure all Canadians reap the rewards of government support for major new projects.
The Canada Strong Fund will begin with an initial endowment of $25-billion.
The Prime Minister made the announcement Monday, one day before his government releases a spring economic update.
A sovereign wealth fund is a state-owned investment account that is typically independently managed.
“This will be a Government of Canada fund, but more importantly, it will be a people’s fund. It will be your fund,” Mr. Carney said at a news conference in Ottawa at the Canada Science and Technology Museum, according to his prepared remarks.
Mr. Carney described the fund as a national savings and investment account that is designed to grow wealth for future generations.
“Many countries that are blessed with natural resources, like Norway, have them. Canada has not. Until now. The new Canada Strong Fund will give all Canadians a direct stake in building Canada strong,” he said.
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The fund is linked to planned federal support for what the government describes as nation-building projects, including ports and natural resources projects.
“Over time, the fund will grow through asset recycling and reinvestment, creating even greater opportunities for future generations,” he said, adding that Canadians will be able to invest directly in the fund if they wish.
The Prime Minister said the fund will be professionally managed and will operate at arm’s length from the government as an independent Crown corporation. The government will hold consultations over the coming months on the details of the fund.
“This is about ensuring that you – and your children, and your children’s children – benefit from the prosperity we create today,” he said.
It was not immediately clear from Mr. Carney’s comments how the new fund would interact with other federal entities with similar responsibilities, including the Canada Infrastructure Bank and the Canada Growth Fund.
Finance Minister François-Philippe Champagne and Prime Minister Mark Carney during an announcement on Parliament Hill in Ottawa on April 14.Adrian Wyld/The Canadian Press
Finance Minister François-Philippe Champagne will have a separate and related event in Montreal.
Mr. Champagne’s office invited leaders of the country’s largest banks, pension plans and construction companies to the minister’s event, which was described to them as a pre-release of his spring economic statement, focused on infrastructure investment.
By late Sunday, the minister’s team and staff at the Prime Minister’s Office had yet to supply them with any details on the Finance Minister’s announcement.
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The Globe is not identifying the business leaders who relayed details of the event, because they were not authorized to comment on the matter.
Mr. Carney has travelled abroad extensively to attract more foreign capital to Canada, including from sovereign wealth funds in regions such as the Middle East.
He’s also inviting more than 100 of the world’s largest investors to a summit in Toronto in September.
With reports from Andrew Willis and James Bradshaw in Toronto and Maura Forest in Montreal