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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 on second quarter results from the IIC portfolio at the most recent IRC Board Meeting.
In this quarter, interest rates were up with commodities down. Overall the Canadian market was down but international markets were up. In terms of sector performance, Energy was the worst performer in all benchmarks with Information Technology and Health Care generally strong. There were also pockets of strength in Industrials, Consumer Discretionary and Financials. In terms of indicators, investment managers are looking for things like interest rates, oil prices and the U.S. political environment (ie. Trump’s budget).
The total Inuvialuit portfolio value of investment was $438 million at June 30, 2017.
Floyd Roland - Chair
Evelyn Storr - Vice-Chair
Alison Lennie - Board Member
Barry James - Board Member
Phyllis Clark - Board Member