BREAKING: PM Carney announces Canada’s first national sovereign wealth fund

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Carney outlines details of new sovereign wealth fund

Canadians weigh in on Mark Carney’s first year as prime minister

Prime Minister Mark Carney has announced Canada’s first national sovereign wealth fund, the “Canada Strong Fund,” at a press conference in Ottawa on Monday.

The federal government will endow $25 billion into the fund, which Carney says will function as a “national savings and investment account designed to grow wealth for future generations of Canadians.”

This is a developing story. More updates to follow…

In a video released on YouTube, Carney calls it the “Canada Strong Fund” and describes it as “Canada’s first sovereign wealth fund.”

A sovereign wealth fund is a state-owned investment fund that uses government surplus reserves to invest in financial assets like stocks and bonds but is independently managed. Alberta has its own sovereign wealth fund, called the Alberta Heritage Savings Trust Fund, that was established back in 1976.

“Canadians are choosing to buy Canadian, to explore Canadian and build Canadian,” Carney says in the video.

According to two sources with direct knowledge, the fund will be launched with an initial federal endowment, and Canadian businesses and investors will be able to invest in it along with individual Canadians.

The fund is intended to complement and accelerate the work of existing institutions like the Business Development Bank of Canada, and potentially the advancement of projects through the Major Projects Office.

The sources tell CTV News the communications around the fund will be that it aims to give Canadians a direct stake in the country’s future.

The announcement comes as Finance Minister Francois-Philippe Champagne is set to unveil the Carney government’s first spring economic update on Tuesday.

Two senior government sources tell CTV News that the deficit will be smaller than what was projected in the federal budget back in November, in part due to increased revenue from inflation and the price of oil.

That budget forecasted a $78-billion deficit in 2025-26 and a $65-billion deficit for 2026-27, with the figure decreasing to $56.6 billion by 2029-30.

On Sunday, Conservative Leader Pierre Poilievre wrote an open letter to the prime minister to cap the deficit at $31 billion and “present a plan to return to a balanced budget in the medium term.”

This is a developing story. More to come...

With files from CTV News’ Chief Political Correspondent Vassy Kapelos