Canada Setting Up Investment Fund to Distance Economy From U.S.

Prime Minister Mark Carney of Canada said Monday that the country would establish a sovereign wealth fund, a pool of investment capital similar to those maintained by major oil exporters such as Norway, as Ottawa seeks to reduce the economy's dependence on the United States, according to The New York Times. Carney announced the plan to reporters in Ottawa.

Sovereign wealth funds are large investment pools that are generally managed independently, though governments sometimes provide broad direction on where capital may be deployed. Canada is following a path taken by other countries, including oil-rich nations in the Middle East. According to the report, the Canadian fund will concentrate on domestic infrastructure and will be operated like a private company. Canadians will also be able to invest in the fund directly.

Carney described the vehicle as both a government fund and a public one. "This will be a Government of Canada fund, but more importantly, it will be a people's fund, it will be your fund," he said. He added that "Many countries that are blessed with natural resources, like Norway, have them. Canada has not until now."

Carney linked the fund to his plans for major infrastructure projects, including pipelines, ports, new nuclear generation and a high-speed passenger rail line. The Times reported that these projects are intended to bolster the economy in the face of President Trump's trade war with Canada. The article available to this summary was a preview, so details such as fund size, capitalization and governance timelines were not available in the source.