Your turn to invest in Canada
Aritzia taps Matty Matheson to design sweaters, Uber is coming to Muskoka this summer.
Good afternoon everyone.
If you’re interested in learning more about the topic of today’s newsletter, our country’s new sovereign wealth fund, tune into Milk Bag’s first Substack live at 3:30 p.m. ET, where I’ll be unpacking the details with University of Toronto economics professor Joseph Steinberg.
And if you’re just here for the Aritzia and Matty Matheson collaboration story, this edition has that too.
Milk Bag covers the business stories you won’t find on Apple News. If you have a tip or want to work together, email me.
Yesterday morning, Prime Minister Mark Carney took to his new YouTube channel to announce the creation of a $25 billion fund that will focus on investing in Canada. He did not elaborate much further, so the internet has questions.
The biggest misconception I’ve seen across coverage and comment sections are the apples to apples comparisons between Norway’s sovereign wealth fund, which is designed to manage wealth tied to its natural resources (something Canada has failed to do) and mostly looks to the international market to generate returns. Last month, Build Canada published a piece in support of a sovereign wealth fund that would similarly turn “resource profits into lasting wealth” for “all Canadians.”
The Norway example is so well regarded and often referenced in relation to Canada, so it makes sense why the government purposefully weaved it into its messaging, even if the only clear similarity is in its goal of ‘creating wealth.’
But structurally (with the limited details we know so far), totally different. First, Canada operates with a deficit and therefore does not have $25 billion kicking around, as countries who set up SWFs usually do. Second, the money will go into domestic infrastructure projects like pipelines, ports, nuclear energy, and rail lines. Third, you and I will be able to invest in it alongside private companies, which is the most interesting feature of this fund that I’m aware of right now.
“For the first time in the history of Canada, Canadians will not just contribute to the realization of these projects, they will benefit directly from their return.”—Mark Carney
Critics have taken issue with the limited returns expected, and that the fund could be financed by debt—pointing to the similarities between the mandate of the infrastructure bank set up by the last government. Still, tough to form an opinion without knowing where the money is coming from, how the investments will be selected, what the expected returns are, who will actually be in charge of this thing, and how will the fund work with entities with similar responsibilities.
Unlikely that FPC’s fiscal update today will offer those details, but from what I’ve read it seems like the idea will take shape over the coming months. This is not supported by facts but my guess is they’ve been surprised by the response.
Finally, two theories on why they would do this without having more details: the government has been in power for a year and wants to keep up Brand Canada momentum (which has been working, if you look at the recent string of invest in Canada announcements) I also think they’re trying to generate interest—and secure RSVPs, as the invites just went out—from international investors and executives for the investment summit taking place in Toronto in September.
Further reading
—Canada Launches Sovereign Wealth Fund To Boost Growth (Financial Times)
—Build Canada’s Wealth Fund, A Memo By Shane Parrish (Build Canada)
—Sovereign Wealth Fund Not The Best Way To Grow Wealth (Fraser Institute)
—Canada’s Sovereign Wealth Fund: Smart Policy or Risky Bet? (Energi Media)
Aritzia partnered with Matty Matheson’s Prime Seafood Palace to make sweaters, t-shirts, and chocolate sundaes. The brand expanded its Eaton Centre location to include its 19th A-OK Café, its in-house coffee shop. I love seeing local restaurants pop up in places where you least expect and think we’re just getting started with what’s possible with collaborations, though they were smart to keep it to an extremely limited inventory (the jackets didn’t even make it to the site). In other Matty Matheson news, he’s bringing Niagara’s Rizzo’s House of Parm to the city as a pop up during May.
A new parking garage Ontario Place could feature an LED screen that’s as big as the court the Raptors play on. Plans also include an OPP helicopter pad and potential marine unit, in addition to a spa and convention centre.
The Canadian company that owns a majority stake in Letterboxd is looking to sell. According to Semafor, Andrew Wilkinson’s Tiny has spoken to CNBC, Versant, and The Ankler, about selling the film review platform, which hosts millions of fans and plays a “powerful and growing role in the business.”
Canada’s film industry is generally seeing excitement right now after movies like Frankenstein and The Last of Us chose to film here last year.
A North Ontario transit pilot will see rideshare apps like Uber expand to Muskoka this summer.
Bell Media is expanding its radio advertising to your in-car dashboard.
The cheapest seats to see Team Canada’s World Cup game are more than $1,500. Looks like most of us will have settle for cheering on with special Timbits instead. A new law in Ontario now caps the resale of event tickets at face value, but StubHub has not made the changes. Ticketmaster has started delisting tickets and says it will update its marketplace next week.
Bloomberg’s chief technology officer told Wired that terminals will be getting a chatbot upgrade.
Simons is expanding to Vancouver with its 20th location. The country’s oldest retailer saw 30% growth in BC in 2025, and recently opened its first location in Toronto at the Eaton Centre. In a piece by Isabel Sloane around the opening, she noted the strength of the brand’s high-low offering, where a $2,550 Acne Studios bag can be found beside a $49 Georgian Bay crewneck.
The right price to spend on an engagement ring is 50% less than in 2022.
Rogers is offering voluntary buyout packages to half of its workforce.
The West End Phoenix and Now Toronto both profiled people who are supporting national sports teams behind the scenes. Including the official DJ for the Toronto Tempo and the sous chef for the Toronto Blue Jays.
The cover of the Report on Business was starting some conversations over the weekend. “Romance is truly driving the book world,” a romance category manager at Indigo told Deborah Aarts. Net sales have grown by nearly 400% since 2020, taking it from the retailer’s 20th largest book category to its third.
