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Opinion: Our new 'sovereign wealth fund' isn’t what it says

Other countries' funds invest globally to diversify risk. Canada's doubles down on domestic projects using borrowed money

The name sounds impressive: Canada Strong Fund, Canada’s first national sovereign wealth fund.

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A sovereign wealth fund is fundamentally a vehicle for managing accumulated public wealth. Norway’s is the classic example. Its Government Pension Fund Global, a.k.a. Norway’s Oil Fund, was created to manage the country’s oil and gas revenues for the benefit of current and future generations. Rather than concentrating that wealth at home, Norway invests globally to diversify risk and protect its domestic economy from overheating.

Opinion: Our new 'sovereign wealth fund' isn’t what it says Back to video

The principle is straightforward: wealth comes first, the investment fund comes second.

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