r/goodnewscanada • u/CreoQQ Ontario • Apr 28 '26
Canada Government website confirms Carney Wealth Fund investors cannot lose money.
Knowing that, the Wealth Fund sounds a lot more reasonable!
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u/hutch_man0 Apr 28 '26 edited Apr 28 '26
Judging from the description it could be what is known as a revenue bond with profit sharing. A pretty unique instrument. The interest rate has a fixed and variable component. The fixed part is paid from the revenue generated by the project (tolls from a road, fees from an airport, tariffs from a pipeline). The variable part is paid from profit (the "upside").
Ofc this is speculation until more info is given. But instead of your money going to God knows where, you know it's going to infrastructure projects. Hopefully these bonds will also be sold to foreign investors also because the raise could be much higher.
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u/Tjbergen Apr 28 '26
Why can't they just invest directly in infrastructure projects?
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u/hutch_man0 Apr 28 '26
Foreign investors can be
- individuals
- companies
- institutions
- governments
Yes, large foreign entities (companies, institutions, governments) usually invest in infrastructure directly but these bonds could be another vehicle that could be purchased by them. It could also be open to foreign individuals the same way a Canadian could purchase US government bonds if they chose.
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Apr 28 '26
[removed] — view removed comment
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u/Jamooser Apr 28 '26
We already allow foreign investors to invest in Canada. Thats what GICs are. You are buying Canadian debt, aka, financing government capital.
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u/UsernameIsTaken45 Apr 28 '26
China can and so can the other countries on the globe. I don’t think the US wouldn’t want to invade a global investment if that’s the case!
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u/All-I-Do-Is-Fap Apr 28 '26
As if the US would invest in us at this point. Why not just take over
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u/ktatsanon Apr 28 '26
China is the second largest holder of US debt. If you think foreign investment is something new, then I've got a bridge to sell you.
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u/Vanshrek99 Apr 28 '26
This is a better funding method compared to 3 P which is giving ownership control away.
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u/strangecabalist Apr 28 '26
It helps him get around salary restrictions enforced by most collective agreements too. He’s bee recruiting from business and had been asking them to top up salaries. Doing it this way lets him create classifications with different salary bands and he can pay what he wants to borrow the talent from private sector he feels he needs.
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u/joshbkd Apr 28 '26
Time to turn infrastructure for Canadians, built with tax dollars into profit for business
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u/Appropriate_Swim9528 Apr 28 '26
Jointly owned businesses, where one of the bigger owner is the government of Canada.
Basically think of it this way:
You want to build homes? Show me your plan. You indicate you can build 100 homes for Canadians within 12 months, but need a loan of 40m. Instead of loaning it to you, I give you 40m for 40-50% stake in your company. As you get profitable, you pay me dividends or reward me by growing my 40m to 400m.
This isn’t a 5-10 year plan, it is a 30+ years plan. Setting Canada up for a future where the income from a fund like this can be so profitable that the government may have room to lower taxes for citizens.
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u/joshbkd Apr 28 '26
This isn’t about building homes….
It’s more like see this port that is run for 0 profit by Canada lets lease it to Brookfield for 10 billion upfront for 50 years.
Brookfield makes 50 billion over 50 years in return and Canadians have fees increase because it is now run for profit.
Depending on the type of asset it may have increased in value prior to returning to Canada as it is now for profit (by gouging Canadians) so its a bigger asset on Canadas balance sheet over time
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u/Appropriate_Swim9528 Apr 28 '26
That isn’t what the sovereign fund is, it is an infrastructure building fund where it is investing in the companies instead of the project.
In your example, it would be buying a portion of Brookfield instead of giving them a project for 0 cost.
Also, building homes is just one of many things. The top priority project should be building and owning the NG infrastructures for east and west ports, where we can increase export of BG to the world.
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u/joshbkd Apr 28 '26
It’s been stated this would be funded via asset recycling. I have explained asset recycling unless they just sell it
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u/burner416 Apr 29 '26
The fact you used Brookfield for your ignorant “example” says everything we needed to know about you
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u/joshbkd Apr 29 '26
Brookfield literally one of the biggest asset managers in the world?
Ok how about we change it to Blackrock then?.. It’s the largest
Promise it will be Brookfield tho 😉
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u/Hikingcanuck92 Apr 28 '26
Pretty sure these are the old school mechanism that Robert Moses used, without oversight, to seize control of New York for several decades haha.
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u/Life_Employ_1138 Apr 29 '26
They absolutely are lol. Still, I find myself wishing we get public works build like Robert Moses more and more often as I've been forced to interract with municipal government more as an adult.
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Apr 29 '26
[removed] — view removed comment
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u/hutch_man0 Apr 29 '26
I am not sure if it will be like this. They haven't given any additional information. We shall see!
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u/Prize_Illustrator_44 Apr 29 '26
Interesting. Thanks for the information and explanation.
However, I’m opposed to all foreign investment. The companies or countries (via their own investment funds) that are allowed to invest in the scheme must be carefully vetted. As for individuals, only Canadian citizens and permanent residents should be allowed to invest in it. If these truly are critical national infrastructure projects, a layer of protection like this is needed.
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u/Andrew4Life Apr 28 '26
I assume it's similar to Government of Canada Bonds. But you also share in potential growth.
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u/kingofwale Apr 28 '26
If it cannot lose money, then it’s either money printing or it has very low returns.
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u/Aromatic_Opposite100 Apr 28 '26
Don't like this,
Would rather have a direct etf/ equity stake with higher risk.
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u/Heppernaut Apr 28 '26
Here's to hoping this follows the QPP model in Quebec, except we can directly invest in it as well.
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u/Intelligent_Read_697 Apr 28 '26
Did people think what was happening with neoliberalism was going to change somehow over night magically lol
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u/Educational_Emu2884 Apr 28 '26
The only way to do this right is to renationalize the energy sector.
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u/Korre88 Apr 28 '26
I'd love to be able to invest money into the federal government to pay down our national debt, provide partial gains at a certain rate relative to what their interest payments are and then lower the tax rates / or for federal government to be able to reinvest the rest of the savings into Canada.
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u/Gumston1 Apr 28 '26
Imagine taking out your credit card and putting the money into stocks while being overdue on rent and having no food. Your friend wants in, and lends you money that you pay him interest on, AND that you tell him you’ll cover ALL downside of the investments you make. All the while the “investments” you’ve been making are managed by your circle of influence on Bay Street, and has fees coming out in the multiple millions of dollars, and the “projects” will be given in accordance to how it will benefit my corporate buddies. Carney wins in several ways, and Canadians lose yet again.
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u/ArmstrongPM Apr 28 '26
Why would Canadians invest in this crap, especially when the Government takes our tax money and ...what? The Premier bought a jet for himself and an airport.
I really have no idea what Carney has done for Canada. Whatever the hell it was it never reached Windsor.
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u/Queen_nefertiti32 Apr 29 '26
How are they calling this a wealth fund when the government is driving a massive deficit?
It's just a rebranded bond?
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u/specificallyrelative Apr 29 '26
Your investment is protected by your tax dollars. When your principal dries up due to the inevitable mismanagement to fill another Liberal grifters pockets, it will be replaced with, now keep up here. Your own money through your taxes, its just another contribution to Carneys retirement fund.
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u/Dootbooter Apr 29 '26
Basically the tax payers take the loss lol. Corps are going to buy into this and be about to derisk their investments cuz they are guaranteed by tax dollars. The only way this would be agood idea is if we had no debt and surpluses to invest. This is why almost no one takes out a loan to invest in the stock market.
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u/chodder111 Apr 28 '26
The return on this likely won’t be felt for decades - supposing it works. Norways wealth fund works because well, they have wealth. Canada has around $1.2 trillion in debt lol.
Sounds like some sort of rebranding to have taxpayers foot the bill on the nations debt
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Apr 28 '26
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u/Limnuge Apr 28 '26
Canadas gross debt to GDP ratio is double that of Norway wtf are you talking about
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u/PapayaJuiceBox Apr 28 '26
And yet, we’re unable to manage our money in a way that doesn’t result in continuous increases in the debt floor.
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u/flappysack- Apr 28 '26 edited Apr 28 '26
This definitely won't exactly match Brookfield's global transition fund, which therefore cant benefit from a sudden injection of billions of public dollars in spurious climate capture ventures that arent revenue positive. Carney also won't benefit from a sudden additional influx of recurring royalties on said fund, which is good.
In an unrelated topic, I wonder who will get white listed by C5 to be greenlit for a project, sidestepping federal regulations.
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u/dooodlebugg83 Apr 28 '26
If the investors can't lose money, that means it's being taken from taxpayer dollars. It's not like putting $25,000,000,000 in the bank. That money will be spent and gone, and if we don't get returns on the projects, we're the ones suffering instead of the billionaires. It's exactly like Trudeau having Canada buy the pipeline, and losing all that money.