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Chowda7 said:
www.wealthprofessional.ca

Details of Carney's sovereign wealth fund revealed

Policy follows other oil-producing nations, aimed at financing major projects
www.wealthprofessional.ca www.wealthprofessional.ca
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A lot of conflicting info on this one. It'll be arms length but also invest in Canadian national projects. Looking at other arms length funds like CPPIB, AIMCo, OTPP, etc. there's no guarantee they'll invest in Canada and if we're forcing them to then it's basically the same as a government loan.
 
trtcttc said:
A lot of conflicting info on this one. It'll be arms length but also invest in Canadian national projects. Looking at other arms length funds like CPPIB, AIMCo, OTPP, etc. there's no guarantee they'll invest in Canada and if we're forcing them to then it's basically the same as a government loan.
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Looks more like a vehicle to get institutional and retail investors to help fund infrastructure projects. Probably similar to a bond etf. Not a bad way to fund projects without raising taxes in my opinion besides the initial $25 billion in seed funding

Plus I can see various other funds like the Canada Growth Fund get folded in to reduce admin costs and to help seed the fund
 
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Chowda7 said:
LNG Canada Phase 2 is probably a go
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It is really close. I hear the bond rating agencies want more certainty on BC's DRIPA problem before saying yes, which will then cascade to all the other 'yes'.

I forget if it was ARC at Cedar or Woodfibre, who recently sold 20 years of off take.
 
Chowda7 said:
Looks more like a vehicle to get institutional and retail investors to help fund infrastructure projects. Probably similar to a bond etf. Not a bad way to fund projects without raising taxes in my opinion besides the initial $25 billion in seed funding

Plus I can see various other funds like the Canada Growth Fund get folded in to reduce admin costs and to help seed the fund
Click to expand...
That's not really a sovereign wealth fund in the traditional sense. The whole point of sovereign wealth funds is to invest elsewhere and diversify risk, like the Norway fund they keep referencing. This is essentially government funding packaged in a "financial-like" instrument. It's probably smart on Carney's part to do this, put it in financial jargon so the government can buy stakes in these major infrastructure projects while saying it's "privately funded". Because it's increasingly obvious companies aren't going to take the regulatory risk to build these projects.

Allowing Canadians to buy a stake is going to be interesting, I don't think any SWF issue public shares, which has two main problems. Public shares is going to show how uncompetitive Canadian projects are in the global scale, and how do we prevent foreign nations from buying major stakes in our domestic projects to get around the Investment Canada Act?
 
trtcttc said:
how do we prevent foreign nations from buying major stakes in our domestic projects to get around the Investment Canada Act?
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Buying debt is very different from buying the equity.

Surrealplaces said:
I thought Shell was more or less leaving Canada?
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That was then, this is now! What a different a little war in the Middle East makes.
 
trtcttc said:
That's not really a sovereign wealth fund in the traditional sense. The whole point of sovereign wealth funds is to invest elsewhere and diversify risk, like the Norway fund they keep referencing. This is essentially government funding packaged in a "financial-like" instrument. It's probably smart on Carney's part to do this, put it in financial jargon so the government can buy stakes in these major infrastructure projects while saying it's "privately funded". Because it's increasingly obvious companies aren't going to take the regulatory risk to build these projects.

Allowing Canadians to buy a stake is going to be interesting, I don't think any SWF issue public shares, which has two main problems. Public shares is going to show how uncompetitive Canadian projects are in the global scale, and how do we prevent foreign nations from buying major stakes in our domestic projects to get around the Investment Canada Act?
Click to expand...
The Canada Investment Summit in September makes a lot more sense now. They'll probably try to have it set up by then
 
darwink said:
Buying debt is very different from buying the equity.
Click to expand...
"This represents a new ownership opportunity for Canada and Canadians, with the Fund focused primarily on equity investments."

Canada Strong Fund - Canada.ca

The government is launching Canada’s first national sovereign wealth fund—the Canada Strong Fund. This fund is about making sure that the returns from Build Canada Strong are shared with Canadians.
www.canada.ca www.canada.ca
 
The ironically named sovereign wealth fund seems like another desperate workaround that yet again fails to address the root cause of the problem.

Perhaps Carney should read this:

"Canada’s leading industry groups say Prime Minister Mark Carney’s effort to cut red tape is floundering, costing the country billions more in trade losses than US President Donald Trump’s tariffs. Forestry, oil and gas, and car industry representatives told the FT they are frustrated at the pace of regulatory reform that is central to Carney’s efforts to insulate Canada from Trump’s devastating US trade war. "
 
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