The proposal in one paragraph
The Canada Sovereign Equity Endowment Fund is a permanent equity endowment funded by mandatory non-voting share issuance from Canadian corporations with federal tax liability exceeding $100 million. The surcharge — equal to 25% of FTL — is paid in shares, not cash. Government cash revenue: completely untouched. Corporate operating cash: completely untouched. Three legislative parameters set the mechanism. Everything else is automatic, permanent, and self-managing.
Three parameters — Parliament's only decisions
| Parameter | Baseline | Effect of adjustment |
|---|
| FTL Threshold | $100M | ↑ Narrows universe · ↓ Widens universe |
| Surcharge Rate | 25% | ↑ Larger annual issuance · ↓ Smaller |
| Equity Cap | 5% | ↑ Longer hold before FIFO sales · ↓ Earlier liquidity |
10-co endowment at cost
$14.1B
6 years · 10 companies
Market value — 2024
$16.7B
+$2.6B unrealised gain
Annual dividends
$748M
Growing — recession or not
Full universe annual rate
~$10B/yr
Permanent · automatic
Key points for the policy review
01Not a tax. No cash leaves any corporation.
The surcharge is a share issuance obligation — an accounting entry. No impact on corporate liquidity, credit ratings, or operating capacity.
02Not nationalisation. Non-voting only.
Passive financial interests — identical in governance terms to any pension fund. No board seats. No management influence.
03The permanent feed for the Canada Strong Fund.
CSF deploys $25B once. CSEEF feeds it ~$10B per year — automatically, indefinitely, without further appropriation.
04The model is built. The data is public. The argument is made.
Six years of financials from ten publicly traded Canadian corporations. Every number auditable from SEDAR+ filings.
The ask
A 12-week technical review — Finance Canada, Dept. of Justice, and the Privy Council Office — to assess the mechanism, the legal pathway, and the legislative design. Not a commitment. Not a budget line. A review.