For example, a populist governing political party of a province will not be able to make substantial changes to areas such as the structure of the fund or the percentage of contribution from royalties. A sovereign wealth fund (SWF) is a fund owned by a state (or a political subdivision of a federal state) composed of financial assets such as stocks, bonds, property or other financial instruments. A well-managed sovereign wealth fund will create long-term and predictable funding to direct into our cherished Canadian health care system. However, it might come as a surprise that Canada also has a sovereign wealth fund; Alberta’s Heritage Fund which was built from Alberta’s oil income has a portfolio of $17.5 billion. Sovereign wealth funds are entities that manage the national savings for the purposes of investment. The names attributed to the management entities may include central banks, official investment companies, state pension funds, sovereign oil funds, among others. However, when the resource is depleted, the inflows stop altogether. CPPIB remains accountable to the federal government, but has Board of Directors separate from the government. Featured image from Flickr Creative Commons, BC LNG picture from Commonsensecanadian.ca, [1] http://www.swfinstitute.org/fund-rankings/, [2] http://www.scribd.com/doc/182399660/MacKinnon-A-Saskatchewan-Futures-Fund-pdf, [3] http://www.corporateknights.com/article/rainy-days-leave-alberta-wet?page=show, [4] http://www.lacaisse.com/sites/all/files/medias/en/nouvelles-medias/documents/ra2013_rapport_annuel_en.pdf, [5] http://www2.news.gov.bc.ca/news_releases_2009-2013/2013PREM0018-000231.htm, [6] http://www.canadianbusiness.com/economy/learn-from-albertas-mistake/, [7] http://www.cbc.ca/news/canada/calgary/oil-price-drop-will-lead-to-tough-times-for-alberta-premier-jim-prentice-says-1.2854229, [8] https://www.bloomberg.com/news/2014-12-01/norway-wealth-fund-targets-3-billion-in-green-technology-stakes.html, [9] http://www.regjeringen.no/en/dep/fin/Selected-topics/the-government-pension-fund/responsible-investments/companies-excluded-from-the-investment-u.html?id=447122, [10] http://www.thenational.ae/world/middle-east/norway-blacklists-israeli-firms-linked-to-settlements. Even Northwest Territories has created a structure for its own SWF [6]. Overall, Canada needs SWF’s in order to prepare for economic downturns, to achieve intergenerational equity, and to support various initiatives and objectives. The governance of the consolidated fund will be entirely independent from politics, much like the Canada Pension Plan Investment Board. "Hong Kong Monetary Authority Investment Portfolio (HKMA IP) - Sovereign Wealth Fund, Hong Kong - SWFI", "Hong Kong Future Fund (Hong Kong Future Fund) - Sovereign Wealth Fund, Hong Kong - SWFI", "China Investment Corporation (CIC) - Sovereign Wealth Fund, China - SWFI", "China-Africa Development Fund (CAD Fund) - Government Fund, China - SWFI", "National Council for Social Security Fund (NSSF) - Sovereign Wealth Fund, China - SWFI", "SAFE Investment Company (SAFE) - Government, China - SWFI", "Norway Government Pension Fund Global (Norway GPFG) - Sovereign Wealth Fund, Norway - SWFI", "Saudi Arabian Monetary Authority (SAMA) - Central Bank, Saudi Arabia - SWFI", "Public Investment Fund (PIF) - Sovereign Wealth Fund, Saudi Arabia - SWFI", "Kuwait Investment Authority (KIA) - Sovereign Wealth Fund, Kuwait - SWFI", "Korea Investment Corporation (KIC) - Sovereign Wealth Fund, South Korea - SWFI", "National Development Fund of Iran (NDFI) - Sovereign Wealth Fund, Iran - SWFI", "Libyan Investment Authority (LIA) - Sovereign Wealth Fund, Libya - SWFI", "Brunei Investment Agency (BIA) - Sovereign Wealth Fund, Brunei - SWFI", "State Oil Fund of Azerbaijan (SOFAZ) - Sovereign Wealth Fund, Azerbaijan - SWFI", "Mumtalakat Holding (Mumtalakat) - Sovereign Wealth Fund, Bahrain - SWFI", "Oman's sovereign wealth fund under pressure", "Pula Fund (Pula Fund) - Sovereign Wealth Fund, Botswana - SWFI", List of top international rankings by country, Health expenditure by country by type of financing, https://en.wikipedia.org/w/index.php?title=List_of_countries_by_sovereign_wealth_funds&oldid=997048442, Short description is different from Wikidata, Creative Commons Attribution-ShareAlike License, This page was last edited on 29 December 2020, at 19:41. For one, Norway has blacklisted two Israeli companies related to construction of settlements in West Bank [10]. As Norway shows, there is too much benefit in having a sizable SWF for provinces to let that opportunity disappear. In this group we include Sovereign Wealth Funds (SWFs) and the very large Public Pension Funds (PPFs) who are active in the global market place and have many of the characteristics of SWFs. Author Madelaine Drohan speaks to the Star about sovereign wealth funds, why Angola has one, but Canada doesn't. The fund can invest in any opportunity, including financial assets such as stocks and bonds, or real estate, precious metals and start-ups, with the aim of reaping a return on investment, often linked to a societal objective. However, if Alberta, Quebec, and British Columbia already have created a consolidated fund, it is much easier for other provinces and territories to simply join. However, as the SWF grows in value, this will also become increasingly difficult, because SWF’s have different investment mandates from pension funds. In its nascent years, Alberta’s fund received 30% of non-renewable resource revenue received by Alberta’s government; later, it was reduced to 15%, and then discontinued altogether in 1987 [2]. Saudi Arabia’s sovereign wealth fund built stakes in two major Canadian oil sands players during the energy market rout. Now is a good time to discuss how Canada can strengthen its SWF’s, given that several Canadian provinces and territories are in the process of creating one for themselves. Set up in 2007 with $200 billion in capital and a mandate to … Savings achieved through SWF’s allow for intergenerational equity and prosperity of Canadians in the future. At the national level, Canada has never undertaken such a bold and prudent initiative. There have been feeble attempts to do this in Alberta and Quebec. Most provinces and territories do not have an SWF because it is too difficult to start or manage one. A sovereign wealth fund (SWF), sovereign investment fund, or social wealth fund is a state … To realize this goal, Ontario must create its own SWF and become an adamant supporter of the consolidation for two reasons. Sovereign-Wealth Funds: Are TheyWelcome in Canada? Now, $17 billion is a large sum of money. and Saudi Arabia have sizeable SWF’s as well, valued at $773 billion and $757 billion each [1]. Sovereign wealth funds are entities that manage the national savings for the purposes of investment. Sovereign Wealth Fund Institute (SWFI) is a global organization designed to study sovereign wealth funds, pensions, endowments, superannuation funds, family offices, central banks and other long-term institutional investors in the areas of investing, asset allocation, risk, governance, economics, policy, trade and other relevant issues. To begin with, there needs to be strong public support to justify deferring resource revenue for future consumption. IFSWF also grants associate membership to those SWFs that require an amendment to national law to become a full member. Canada’s Sovereign Wealth Funds: A Question of Consolidation, http://www.swfinstitute.org/fund-rankings/, http://www.scribd.com/doc/182399660/MacKinnon-A-Saskatchewan-Futures-Fund-pdf, http://www.corporateknights.com/article/rainy-days-leave-alberta-wet?page=show, http://www.lacaisse.com/sites/all/files/medias/en/nouvelles-medias/documents/ra2013_rapport_annuel_en.pdf, http://www2.news.gov.bc.ca/news_releases_2009-2013/2013PREM0018-000231.htm, http://www.canadianbusiness.com/economy/learn-from-albertas-mistake/, http://www.cbc.ca/news/canada/calgary/oil-price-drop-will-lead-to-tough-times-for-alberta-premier-jim-prentice-says-1.2854229, https://www.bloomberg.com/news/2014-12-01/norway-wealth-fund-targets-3-billion-in-green-technology-stakes.html, http://www.regjeringen.no/en/dep/fin/Selected-topics/the-government-pension-fund/responsible-investments/companies-excluded-from-the-investment-u.html?id=447122, http://www.thenational.ae/world/middle-east/norway-blacklists-israeli-firms-linked-to-settlements. 17 billion is a daunting task to set up in 2007 with $ 200 in. 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