Business Brief: Kickstarting ‘Canada Strong’
Mark Carney announced the 'Canada Strong' sovereign wealth fund, aimed at financing nation-building projects through government investment and asset recycling. The fund will start with $25 billion over three years and allow Canadians to invest similarly to purchasing government bonds. Unlike Norway’s oil-funded model, Canada plans to borrow to finance the fund amid a projected $80-billion deficit.
- ▪The Canada Strong Fund will launch with $25 billion in government funding over three years and grow through asset recycling and returns.
- ▪Canadians will have the option to invest in the fund in a manner comparable to buying government bonds, according to Mark Carney.
- ▪The fund differs from Norway’s sovereign wealth model, which is funded by oil surpluses, as Canada plans to borrow despite running a large deficit.
- ▪The Canada Strong Fund aims to give Canadians ownership stakes in major projects previously financed without public equity participation.
- ▪Other existing funds include the $15-billion Canada Growth Fund and the $35-billion Canada Infrastructure Bank, each targeting specific investment risks and infrastructure needs.
Opening excerpt (first ~120 words) tap to expand
ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountGood morning. The new sovereign wealth fund announced yesterday by Mark Carney adds another layer to Canada’s funding ecosystem. Where it fits – and what we know so far – is in focus today. Plus, how long can consumers “look through” price shocks?Up firstIn the newsTelecoms: Rogers Communications Inc. is offering voluntary buyouts to half of its work force – excluding those in its Maple Leaf Sports & Entertainment division – as revenue growth slows.Deals: Shell is set to buy Canadian producer ARC Resources in a US$16.4-billion deal. Trade: Quebec furniture maker South Shore is shutting down as tariffs bite into business.Open this photo in gallery:Norway supporters rejoice at this year's Winter Olympics.
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