Canada to set up 1st sovereign wealth fund to facilitate economic transformation

Canadian Prime Minister Mark Carney on Monday announced that the country's first national sovereign wealth fund will be established to facilitate the strengthening and transformation of the national economy.

The fund, named the Canada Strong Fund, will gain an initial federal contribution of 25 billion Canadian dollars (about 18 billion U.S. dollars) to "strategically invest, alongside the private sector, in Canadian projects and companies driving our economic transformation," said a news release from the prime minister's official website.

This includes projects in clean and conventional energy, critical minerals, agriculture and infrastructure, said the release.

The returns will be reinvested to grow the fund and strengthen its capacity over time, and the government will also launch a retail investment product, said the release.

Earlier this month, Carney urged economic diversification amid trade tensions with the United States, outlining a strategy focused on attracting global investment, harmonizing interprovincial trade regulations within Canada, and doubling Canada's clean energy capacity to reduce external volatility.