The Kahnawake Sovereign Wealth Fund (KSWF) officially entered the market on June 27, putting $26.7 million into public market investments.
The Mohawk Council of Kahnawake (MCK) established a for-profit diversified investment fund in August last year, and the council hopes that Kahnawake will eventually become fully financially independent from the federal government.
Branden Morris, the investment manager for the fund, which is valued at $33.3 million, said it was surreal to finally see the money invested. It was a long process for MCK’s Investment and Revenue Committee to shortlist the right portfolio manager to oversee exactly how the money would be allocated. More than 20 proposals were considered before the selection was made.
“We basically started this project from scratch,” Morris said. “And now we’re finally here today, with the portfolio in the market. I’m really proud of the work we’ve done. We’ve invested in some great quality assets, and I’m really excited to watch this fund progress.”
The fund aims to reach a net asset value of $1 billion by 2074.
Of the $26.7 million that has been put into the market so far, 50 percent has been invested in stocks and the other 50 percent in income-generating assets such as bonds and guaranteed investment certificates (GICs).
Morris said a full breakdown of where the money is invested and how well the fund is performing will be revealed at the end of its financial year in March, when KSWF is due to publish its annual report on financial activities.
The fund’s two portfolio managers were also announced on June 27, a day after the fund officially listed on the market.
Canaccord Genuity has been tasked with overseeing the income and equity management of the fund, which has about $20 million in assets, which will be invested in government bonds, corporate bonds and a range of globally diversified exchange-traded funds.
“The team was fantastic and we were really impressed with the flexibility of the service they offered,” Morris said. “They had a range of proprietary funds, they had access to other portfolio managers and they also offered a very simple strategy, which was basically buying exchange-traded funds, which is what we ended up going with.”
Meanwhile, Giverny Capital will focus solely on equity investments and will manage about $6.7 million of the fund.
MCK’s Investment and Revenue Committee will manage the remaining $6.6 million of the fund’s total $33.3 million, which will be its direct investment portfolio.
“This includes direct investments in renewable energy, real estate, infrastructure and private equity,” Morris said. “This money has not yet been invested, but some of it has been earmarked for upcoming renewable energy projects.”
miriam@easterndoor.com
By Miriam Lafontaine, Local Journalism Initiative Reporter, Eastern Stand
