Beaver bonds

“I picked up your book “Sheeple” in my local library in the mid-2010s and have been a devoted daily reader of your blog since!” writes Sue, in a splendid MSU. “You’ve enabled my family to be financially secure for the future. All this plus wit and dog pictures!”

Okay, this is about more than stoking. Sue has a legit question we need an answer to – especially given events of this week.

“I’m wondering about the Canada Strong Bonds that were announced earlier this year. $25 billion, I think. Do you know when or how these will be sold to the public?”

Ah, yea. Canada Strong. As we face the American bully president, as his VP disparages our PM in public (Vance says Canada just got hosed) and as we’re about to see bourbon back in the liquor store, we need strong. A sovereign wealth fund to build our country and allow people to own a chunk of it feels right about now. Bring it on, Big Daddy.

As we know the feds launched the idea of a Canada Strong Fund four months ago, promising that we little beavers could buy shares in it and ultimately invest in major projects like ports, mines and grids. There are a hundred or so sovereign funds in the world, collectively managing $16 trillion. But ours would be different.

Seeded with $25 billion in public money, this one will not (like the others) be closed and owned only by the government. Instead it will be open to outside investment from citizens, giving the potential to profit from fund performance and turning into a long-term savings and growth asset. For the first time in our history, average folk could end up being shareholders in large-scale infrastructure, resource and energy projects that in the past were the domain of governments or massive pension funds.

But wait. What about risk? Some people think everything government touches turns into crap and corruption. Why would this be different?

For one, the money people put into the fund will have principal protection. Like the old, sweet Canada Savings Bonds, losing money is impossible.

But growth is still anticipated. The value of units people own will be performance-linked, reflecting the upside as these nation-building projects (critical minerals, ports, pipelines etc) get built and start generating profits. Like the market-linked GICs the banks flog.

Second, the Canada Strong Fund will not be run by politicians. A transition office is now selecting the CEO and independent board that will administer it, which will be arm’s-length as a Crown corporation. The initial capital will flow from the feds over three years, and private money will also be welcomed. There will be direct ownership in projects and companies engaged in the projects.

Details are due to be released (we’re told) next month, or by Thanksgiving.

So how will people like Sue be able to invest?

We don’t know yet. But odds are Canadians will be able to buy units directly, likely be eligible for tucking inside a registered plan like an RRSP or TFSA. There might be a minimum investment amount. And ounce purchased, units might be locked in for a few years, which would impact liquidity.

Units would not be publicly traded, like on the TSX. The whole thing would function more like a national mutual fund. It would make sense for Canada Strong units to be available through the banks, brokerages and online from the corp.

Lots we don’t know yet, Sue. But this smells like a worthy thing. Build out the place. Lessen dependence on you-know-who. Give citizens a stable long-term investment asset. Encourage risk-free saving. Democratize our national infrastructure. And stop obsessing about a rogue, flaky American president by doing something constructive, smeared in maple syrup and poutine.

Bring it on.

About the picture: “I saw your request for photos and finally got round to sending you a photo of our beloved Clyde,” writes Paul. ” Sadly he passed away a few months ago, just a couple of months short of 15. God how I miss him, he was the best. As you know dogs don’t ask for much but they give us so much more in return. His love of life was so contagious and never failed to put a smile on my face no matter what life threw at me that day. He was a huge fan of playing with a football, my human son is into technology instead, and with me being from the old country (Scotland) where football is a religion, you can imagine how much fun we had together. I’d like to take this opportunity to thank you for all the years you’ve been posting online. Rarely a day goes past when I don’t check in to read your thoughts on this crazy world we live in. Rarely a day also goes past where I don’t nod in agreement. You remind me all the time that life is about balance, whether it’s in my portfolio, at work or at home with the family.  It’s really appreciated that no matter what happens elsewhere (you know whom I’m referring to) there is one place I can rely on an intelligent, experienced, and balanced perspective.”

To be in touch or send a picture of your beast, email to ‘[email protected]’.

Source: https://www.greaterfool.ca/2026/08/21/beaver-bonds/