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Inuvialuit Investment Corporation
Established through the Inuvialuit Final Agreement (IFA), Inuvialuit Investment Corporation (IIC) received a major portion of the financial compensation flowing from the IFA.
Today, IIC oversees a diversified securities portfolio that includes the Inuvialuit Heritage Fund, as well as funds held on behalf of other IRC subsidiaries, the Inuvialuit Harvesters Assistance Trust and the Community Corporations. The portfolio is managed by several Canadian institutional fund managers.
IIC's mandate is to increase overall portfolio value using conservative strategies to preserve capital and benefit future generations of Inuvialuit. In order to balance risk and return, IIC has adopted an asset allocation model that sets permissible ranges of Canadian, United States and foreign equity content as well as credit quality and risk concentration limits.
IIC’s specific objectives are to:
- Protect the value of the investment funds entrusted to IIC
- Earn a before-tax real rate of return of 5% over the long-term
- Manage investment funds on behalf of other members of the Inuvialuit Corporate Group, the Inuvialuit Harvesters Assistance Trust, and the Community Corporations
In order to balance risk and return objectives, IIC adopted a revised Statement of Investment Policies and Goals in 1977. The resulting asset allocation model set investment targets of 60% equities and 35% fixed income securities, with permissible deviations of up to 5%.
IIC Chair, Floyd Roland, reported that the Board met November 3 and 4, 2016 in Toronto to review the third quarter results of the IIC portfolio. It was also the annual meeting with the various fund managers and a review of IIC’s assets allocations. In this quarter, the markets were impacted by three major forces - a small decline in oil which kept markets stagnant, equities and bonds continued to churn out returns, and the U.S. Presidential election. Markets are cautiously advancing. Gold prices declined 0.5% as investors ventured out with their money. Overall the Canadian and U.S. markets were up while the international markets struggled throughout the quarter. The declining Canadian dollar also meant that international returns were higher when translated into the home currency. Since December 31, 2015, the portfolio has increased in value by $20 million. The total Inuvialuit portfolio value of investment was $419 million on September 30, 2016. IIC continues to outpace the market with five-year returns of 10.4% vs market returns of 9.9%.
Floyd Roland - Chair
Evelyn Storr - Vice-Chair
Alison Lennie - Board Member
Robert W. Korthals - Board Member
Barry Wainstein - Board Member