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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 Beth Hamilton-Keen and Brian Gibson provided an overview of good governance for Investment Committees. The session included a review of bylaws, board roles and responsibilities, management roles and responsibilities, and comparative structures.
In the first quarter the markets were volatile with the formal approval of Brexit, continued adjustments to the new U.S. president, and decreases in oil prices. The U.S. Federal Reserve continues to lift rates; and there may be another increase in 2017. This has caused some price fluctuations in the bond markets. Further, the prospect of tax and regulation reform continued to keep investors positive. In terms of indicators, investment managers are looking for things like interest rates, oil prices and house market collapse.
Floyd Roland - Chair
Evelyn Storr - Vice-Chair
Alison Lennie - Board Member
Barry James - Board Member
Phyllis Clark - Board Member