The government is launching Canada's first national sovereign wealth fund-the Canada Strong Fund. This fund is about making sure that the returns from Build Canada Strong are shared with Canadians.
Designed to give all Canadians a direct stake in the Build Canada agenda, it is a Government of Canada fund, but, more importantly, a fund that belongs to all Canadians. The Fund will invest in strategic Canadian projects and companies alongside other investors-with a clear objective to achieve commercial returns to build the wealth of Canada. This is how the Canada Strong Fund will work:
An Initial Endowment that is Designed to Grow
Initially, the government will provide $25 billion over 3 years, on a cash basis, to seed the Canada Strong Fund.
The Fund will increase over time, both from the returns that it generates, and through other assets that the government may allocate to it.
An Investment Strategy that Emphasizes Returns
The Canada Strong Fund will focus on building Canada. From infrastructure to advanced manufacturing to energy and mining, the Fund will have a mandate to deliver market-rate returns for Canadians across the economy.
Leading Canadian companies will help build our energy, transportation and telecommunications infrastructure and future economy.
Global investors are increasingly looking to Canada as a destination for major new investments, and the federal government is working to ensure these projects move forward.
As Canadian companies and international partners invest and succeed here, Canadians should also have a stake - so that everyone benefits. That is why the Canada Strong Fund will participate alongside other investors on a fully commercial basis.
This represents a new ownership opportunity for Canada and Canadians, with the Fund focused primarily on equity investments.
The Major Projects Office is working closely with project proponents as they move through regulatory approvals, and the government is assessing projects for potential designation under the Building Canada Act.
At the same time, institutions such as the Canada Infrastructure Bank, Export Development Canada, the Business Development Bank of Canada, the Canada Indigenous Loan Guarantee Corporation, and a range of departmental programs are already playing a critical role in advancing large-scale projects and supporting the growth of Canadian companies.
Where the federal government is active, the Canada Strong Fund will focus on complementing these efforts-investing alongside private capital in this growing pipeline of projects and companies, and generating strong, commercial returns for Canadians.
An Independent, Professional Crown Corporation Focused on Performance
Independence and professional management ensure a sovereign wealth fund can make long-term, economically sound investment decisions. This structure is widely regarded as global best practice because it strengthens transparency, credibility, and long-term performance through consistent, expert management.
The Canada Strong Fund will operate at arms-length from government. We will create a new Crown corporation, and its work will be guided by a CEO and a qualified independent board of directors. This model will ensure that both in the near-term and the long-term the Fund remains focused on its mission - supporting the transformation of the economy and creating wealth for Canadians.
A Simple Way for Canadians to also Directly Participate
We are Building Canada Strong-and the Canada Strong Fund is designed to take that effort even further. The government intends to offer Canadians the opportunity to participate directly in the Fund through a new, retail investment product.
This means that any Canadian who wishes to can invest some of their savings into the Canada Strong Fund.
The government intends to consult on the specific design of this product, but Canadians can expect the following features:
- Broadly accessible to Canadians from coast to coast to coast;
- Easy and simple to purchase, hold, and transact;
- As the Canada Strong Fund succeeds, investors will be able to share in the upside, while their initial invested capital will be protected.
When Canadians invest directly in the Canada Strong Fund, they will help fuel its growth and increase its ability to deliver meaningful benefits across the country.
