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Canada to set up sovereign wealth fund with initial funding of C$25 billion
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April 27 (Reuters) - Canada will set up a sovereign wealth fund with an initial endowment of C$25 billion ($18.38 billion) to invest in major domestic projects, Prime Minister Mark Carney told reporters on Monday. The announcement, which comes just a day before Canada's fiscal update, will be the nation's first sovereign fund. "A sovereign wealth fund is essentially a national savings and investment account – designed to grow wealth for future generations," Carney said. The Canada Strong Fund will invest in major projects across the country along side private sector on a commercial basis and will grow in size through asset recycling and reinvestment, Carney said. Many countries endowed with natural resources, especially oil and natural gas, have state-owned investment funds to manage surplus wealth. These sovereign wealth funds typically invest in projects and markets globally. ($1 = 1.3599 Canadian dollars) (Reporting by Disha Mishra in Bengaluru and Promit Mukherjee in Ottawa; Editing by Toby Chopra and David Ljunggren)