+ Sovereign Wealth Funds for Indigenous and Northern Communities - - PowerPoint PPT Presentation
+ Sovereign Wealth Funds for Indigenous and Northern Communities Greg Poelzer & Melanie Plante + Objectives Gap analysis Current management practices KNOWN KNOWN KNOWNS UNKNOWNS Potential use of regional and local level SWFs
Greg Poelzer & Melanie Plante
KNOWN KNOWNS KNOWN UNKNOWNS UNKNOWN KNOWNS UNKNOWN UNKNOWNS
Gap analysis Current management practices Potential use of regional and local level SWFs Identifying obstacles Focus on the Canadian North
Literature review, document analysis, discussions with experts in the field
Separate pool of government
funds that have holdings in foreign assets
“Buying mutual funds for
governments”
Build wealth over time &
stabilize resource-based economies
Gold star example: Norway’s
Norwegian Government Fund Global
Fiduciary legal relationship Terms are set in a trust agreement Trustee manages and protects trust property for the
beneficiary government-owned required to invest
Small sub-national resource based SWFs are successful NWT the first territory to create resource based fund in 2012 Potential for other regions to adopt similar projects Obstacles include access to resource revenue and balancing current needs with future ones OUTCOMES INTEREST
Indigenous trust funds are popular Used primarily to manage money from IBAs and Land Claim Agreements Heterogeneity Obstacles: taxation & control of assets Template of best practices DATA
community participation in drafting the trust agreement community ratification of the trust agreement requiring trustees and/or Chief and council to obtain
independent investment advice
drafting an investment policy statement clearly indicating who is responsible for investing trust property indicating what type of investments the trust property can be
invested in
investment professionals need to meet four requirements:
set aside a portion of funds as ‘legacy funds’
Are there alternatives? Reduce
long-term investments
removing income tax for First Nations trusts continue to work with First Nations to make funds held in
government accounts more accessible
support the creation of inter-generational wealth
More empirical work and data collection on current trust funds Gathering First Nation experiences on trust funds Engage with First Nation communities to develop evidence-based guidelines that reflect their needs and goals