Global Stocks: Canada to set up sovereign wealth fund with initial funding of C$25 billion

Canada will set up a sovereign wealth fund with an initial endowment of C$25 billion ($18.38 billion) to invest in major ‌domestic ⁠projects, Prime ⁠Minister Mark Carney told reporters on Monday.

The announcement, which comes just a day ​before Canada's fiscal update, will be the nation's first sovereign fund.

"A ​sovereign wealth fund is ⁠essentially a ‌national savings and investment ​account - ​designed to grow wealth ⁠for future generations," Carney said.


The Canada Strong ​Fund will invest in major ​projects across the country along side private sector on a commercial basis and will grow in size through asset recycling ‌and reinvestment, Carney said.

Many countries endowed with natural resources, especially oil ​and natural ​gas, ⁠have state-owned investment funds to manage surplus wealth. These sovereign wealth funds typically invest ​in projects and markets globally.

($1 = 1.3599 Canadian dollars)