What is a sovereign wealth fund and how does it work?
- Posted on April 28, 2026
- By The Globe and Mail
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- 1 min read
Sovereign wealth funds represent a powerful financial mechanism through which governments invest national reserves to generate long-term returns and economic resilience. These state-owned investment vehicles, championed by financial leaders like Mark Carney, pool public capital to diversify revenue streams beyond traditional exports and commodity sales. Operating across global markets, SWFs help nations weather economic volatility while building intergenerational wealth. Their strategic deployment spans equities, real estate, and infrastructure projects, enabling countries to strengthen fiscal positions and achieve sustainable prosperity for future generations.
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