Federal budget outlines how Canadians could profit from first national sovereign fund

Canadians may soon be able to put some of their savings into an investment product linked to the country’s major projects and businesses. The 2026 federal budget provides more detail on the Canada Strong Fund (CSF), the country’s first national sovereign wealth fund, including how it would invest public money and how individuals could share in its returns. It would add to existing options such as real estate, bonds and stocks.

Other countries use sovereign wealth funds and similar government-owned investment companies to build long-term wealth. Norway’s Government Pension Fund Global invests oil and gas revenues overseas. Singapore’s state-owned Temasek invests in businesses at home and abroad for commercial returns. Saudi Arabia’s Public Investment Fund combines international investments with domestic projects intended to develop industries and reduce the economy’s dependence on oil.

Canada already has a provincial example: Alberta’s Heritage Savings Trust Fund. Established by Alberta’s government in 1976, it saves part of the province’s non-renewable resource revenues for the future. It began with $1.5 billion and was worth $32 billion as of March 2026. Its purpose is to turn wealth from resources such as oil and gas into long-term investment earnings for current and future generations of Albertans.

Prime Minister Mark Carney’s proposed CSF would have a different geographic focus, investing only in Canadian companies and projects. Its goal would be to earn long-term financial returns while supporting the Canadian economy. First announced in spring 2026, the fund would receive an initial $25 billion from the federal government over three years.

The budget proposes establishing the CSF as a standalone federal Crown corporation and outlines potential investments, funding sources and a proposed savings product. The federal government plans to introduce legislation to establish the corporation in the coming months. Until that legislation takes effect, the CSF would be set up as a wholly owned subsidiary of the Canada Development Investment Corporation, with its own chief executive and board. The proposed seven-member board would include the chief executive, the federal deputy minister of finance and five independent directors with investment or corporate experience.

The CSF would operate at arm’s length from government and publish quarterly and annual reports. Its performance would be compared with private-sector investments. It would buy shares in businesses and projects without taking them over. Usually, it would invest alongside private investors on similar terms, weighing potential profits against the risk of losses.

One potential investment route involves companies and projects already receiving federal support, whether through financing, grants or help navigating approvals through the federal Major Projects Office. That support would normally create an opportunity for the fund to invest, but participation would not be required. Potential examples include hydroelectric dam projects, a semiconductor manufacturer expanding its business in Canada, and a critical minerals project supported by road and electrical infrastructure.

The CSF could also identify promising Canadian businesses and projects on its own. In some cases, it could invest without a private partner if the expected financial returns met its requirements and there were a strong case for broader economic benefits. The fund could take a passive minority stake in groups awarded the relevant contracts. It could also receive some contract proceeds and invest them in other Canadian businesses and projects. The CSF’s role would be to earn investment returns, while existing federal programs could continue providing grants or financing on more favourable terms to help projects proceed.

For individuals, the federal government aims to introduce Canada Strong Notes through participating financial institutions in early 2027. These investments would be linked to the sovereign wealth fund’s performance, with the initial investment protected when the note reaches the end of its term. The notes would pay a base interest rate and offer additional returns depending on the fund’s performance. Investors could receive gains through interest payments over the term and a higher payout at maturity.

The federal government gave the example of someone investing $5,000 in a 10-year Canada Strong Note to help pay for a grandchild’s post-secondary education. The investor would receive annual interest payments and could earn additional returns based on the CSF’s performance; the original $5,000 would be protected at maturity. Before investing, they would review how returns are calculated and any conditions for withdrawing money early. The CSF’s investments would still carry risks, including possible losses alongside private partners.

Beyond the federal government’s initial contribution, money raised through the notes would help finance the fund. It could also receive proceeds from federal assets and properties or ownership stakes in existing commercial government assets, and reinvest some of its earnings.

Canada’s largest airports are one potential funding source. In September 2026, Carney announced plans to seek private investment at four federally owned airports: Vancouver International Airport, Calgary International Airport, Toronto Pearson International Airport and Montréal-Trudeau International Airport. All four are currently operated by locally governed, non-profit airport authorities that pay annual rent to the federal government.

Investors would obtain long-term contracts to operate the airports, while the federal government would retain ownership of the land and assets. Vancouver International Airport is being considered as a possible first airport to make this shift to for-profit privatization, partly because First Nations could take a minority ownership stake in its operations.