New $25bn fund will be open to retail investment, advisors share what they’re watching for to see if they might recommend it to clients
Canada’s first sovereign wealth fund was announced on Monday, with a new feature unique in the world of sovereign wealth funds. The $25bn “Canada Strong Fund” will be open to retail investment, according to the Prime Minister’s press conference announcing the new entity. The goal, according to the Prime Minister, will be to allow Canadian citizens to participate in the investments made by this fund and the hoped-for wealth creation that should come about as a result.
For advisors, that presents a possible opportunity. This fund, which aims to invest in infrastructure projects deemed to be in the national interest, could give retail investors access to the kind of investments still largely limited to institutions. At the same time, details about liquidity, management, and how the government plans to find the $25 billion to start this fund are all still forthcoming. Advisors shared with WP what they are going to be looking for to decide whether to recommend this investment.
“We have to understand the liquidity behind this fund,” says Francis Sabourin, Senior Investment Advisor and Senior portfolio manager at Francis Sabourin Wealth Management of Richardson Wealth. “Will this only be used in private investments, public investments, or a partnership? How will it be managed and by who? I’m not against having this for retail investors, but there’s a lot to be clarified before we get involved.”
Sabourin noted, broadly, that while he has many questions he’s pleased that Canada has launched this fund. He praised Prime Minister Carney’s background in economics and investment leadership as contributing to the idea for this fund.
Michael Zagari, Portfolio Manager at Wellington-Altus Private Wealth, says he’ll be watching to assess the nature of the projects this fund is set to invest in. He wants to see the fund focused on infrastructure projects related to the ongoing AI revolution: data centres and power generation stations.
“Are they mostly going to be building bridges and highways, or are we going to complement our Darlington site and focus on small modular reactors? Are we going to be focusing on data centers and building out our AI infrastructure?,” Zagari asks. “I’d like to have something more tech focused.”
Sabourin believes that the patriotic branding of the fund and its stated goal of financing projects in the national interest will make it popular among Canadian retail investors. That said, he wants to know about other factors that he would use to assess any investment for himself or his clients. That includes returns expectations, eligibility for registered accounts, and liquidity.
Liquidity was another factor raised by Darren Coleman in outlining how he’ll be judging the retail rollout of this fund. The Senior Portfolio Manager at Portage Cross Border Wealth Management said that he’ll look at the eventual fund the way he might any other investment fund.
Coleman says he and his team will look at what the fund’s investment allocation is supposed to be, what its investment objectives and risk management policies will be. He’ll be looking at fees, at underlying investments, and at the underlying natural liquidity as well as any policies around redemptions. He notes that many private equity and alternative investment products have also seen issues around redemptions and liquidity. A fund investing in assets as illiquid as infrastructure projects may see similar issues.
While Coleman will take that systematic approach to assessing this retail fund, he also notes with some concern that most sovereign wealth funds are launched by states enjoying a surplus from their resource wealth. In 2025, Canada posted a budget deficit of $78 billion.
“If a client came to me and said, ‘I know I’m wildly deep in debt, I get it, but I really want to set up this investment account and hand the money to my cousin,’ I’d tell them to wait a minute, we need to pay off your debts,” Coleman says. “But apparently we have this extra money. We’re going to put in a sovereign wealth fund.”
Coleman also expressed some concern about the governance of this fund. While the Prime Minister announced that the fund will be an independently managed arms-length crown corporation, Coleman notes that the governing Liberal Party has had recent issues with transparency and management of publicly funded projects. He hopes that the fund will be managed with something akin to the expertise and independence we’ve seen from the Canada Pension Plan Investment Board.
Tina Tehranchian, Senior Wealth Advisor at CI Assante Wealth Management Ltd., echoed Coleman’s concern about debt, noting that Canada isn’t launching this fund from an existing place of surplus. She noted that this could signal a willingness to provide long-term backing for Canadian real assets, which could create structural tailwinds around sectors like infrastructure, natural resources, and industrial development.
“If direct access is eventually offered, the fund could emerge as a hybrid alternative asset, combining characteristics of infrastructure and private equity with a long-duration, inflation-sensitive return profile. That said, the opportunity should be viewed with discipline,” Tehranchian said. “Returns will depend heavily on governance, project selection, and the ability to navigate regulatory constraints that have historically delayed large-scale developments in Canada. The best approach is to monitor rather than react, look for selective opportunities in policy-aligned sectors, and treat any future access to the fund as a long-term complementary allocation, not a core portfolio holding.”
