Carney’s ‘Canada Strong Fund’ likely to follow path of failing U.K. fund he helped create, think tank says
OTTAWA — Prime Minister Mark Carney’s new sovereign wealth fund is likely to follow in the footsteps of a troubled British fund he had a hand in making, says a new report.
The report, released Thursday by think tank the Montreal Economic Institute (MEI), notes that Carney’s Canada Strong Fund echoes the United Kingdom’s National Wealth Fund , and argues that the resemblance should be a red flag for the Canadian prime minister and former Bank of England governor.
“Two years before selling this model to Canadians, Mark Carney recommended it to the British, who implemented it,” says Bryan Cheang, the study’s author.
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Cheang, a research fellow at the London School of Economics, said that the model hasn’t worked in Britain so far and is unlikely to work in Canada.
Carney announced, in April, the creation of Canada’s first national sovereign wealth fund , with an initial endowment of $25 billion over three years . He said at the time that the fund would give private citizens an easy way to invest in major national projects.
While called a sovereign wealth fund, the Canada Strong Fund will use debt, rather than surplus revenues or resource wealth, to finance its activities.
Coincidentally, Carney was formerly part of a “Green Finance” taskforce that advised Britain’s Labour government on its National Wealth Fund, a public finance institution created in 2024.
The fund absorbed the former UK Infrastructure Bank, created in 2021, and was given £7.3 billion (C$13.7 billion) to invest in wealth generating projects. This includes investments in high-risk industries like green hydrogen, carbon capture and battery gigafactories.
Officials said at the time that the fund would attract three pounds of private money for every one pound from the public purse.
5News aggregated this summary from the outlet’s public feed. The full article, with all the context, is on nationalpost.com — the content belongs to National Post.
