2017 Report

Annual contribution to Trust Account

(30% of Revenue Realized from Jan 1/12 to Dec 31/17)

Year   Annual Contribution
2017 $ 925,160.00  
2016 $ 3,423,261.00  
2015 $ 2,798,365.00  
2014 $ 1,459,262.00  
2013 $ 1,210,119.00  
2012 $ 1,198,540.00  
2011 $ 1,347,673.00  
2010 $ 1,551,289.68  
2009 $ 1,366,559.62  
2008 $ 1,364,871.00  
2007 $ 1,483,925.50  

2006 — The last deposit from Canada which brings our minimum amount to $60 Million

Note:

The reason the revenues realized of $925,160 for 2017 have decreased from the 2016 amount of $3,423,261 is on account of the following:

  • In 2017 the minimum amount contribution has decreased from 40% to 30% of revenues realized;
  • The 2017 revenues realized are $3,083,867 compared to 2016 of $8,558,152 which is on account of significant capital gains being realized in 2015, which was out of the ordinary when compared to previous years revenues realized.

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Investment Consultant Overview

2017 Capital Markets Summary

2017 was another good year for Capital Markets as stocks generally performed well on a global basis. The Canadian stock market, as represented by the S7P/TSX Composite Index, was up 9.1 % for the year. Stocks performed even stronger outside of Canada, as the MSCI World Index and the US S&P 500 Index were up 14.4% and 14.1 %, respectively, in Canadian dollar terms. Fixed Income/Bonds generated modest returns in 2017 as interest rates increased modestly during the year. The overall Bond market, as measured by the FTSE Canada Universe Bond Index, returned 2.5% in 2017.

Trust 2017 Investment Performance of 6.9%

The Trust achieved a reasonably good return in 2017 of 6.9%, which translated into a dollar investment return of approximately $6.3 Million. The Trust again benefited from its investments in Canadian and Global Equities (which comprised about 50% of the Trust's investments in 2017), as well as modest returns from its sizable fixed income portfolio (mostly comprised of quality government and corporate bonds).

Trust Longer Term Investment Performance

The Trust has achieved reasonably good long-term investment performance. For the 13-year period since inception, the Trust has achieved a 6.0% annualized return despite highly volatile and challenging markets (including 2008, which was one of the worst performing stock market year on record). Over the past 5 years (2013-2017), the Trust has generated a highly satisfactory annualized return of 7.8%. Over the long term, both Investment Managers have been able to achieve investment returns that have satisfied the Trust's investment objectives and exceeded their respective performance benchmarks.

Financial Position of the Trust

Market Value of Trust at December 31, 2017: $96,371,492

The Market Value reflects the actual value and true wealth of the Trust. The Trust's market value as at December 31, 2017 was about $96.4 Million - a substantial increase from the Trust's market value of 64.8 Million in 2006 (the last year the Trust received a Trust payment from the Government of Canada). This increase in the Trust's market value is especially notable given the substantial land purchases and community development expenditures that the Trust has made over this period.

Establishment of the Kahkewistahaw 1907 Specific Claim Trust

In December 2017 the members of the First Nation approved the revocation of the Kahkewistahaw 1907 Trust Agreement and approved the creation and establishment of a new trust entitled the Kahkewistahaw 1907 Specific Claim Trust. In January 2018 the assets of the former Trust were transferred over to the newly established Kahkewistahaw 1907 Specific Claim Trust.

Compliance with the Trust's Investment Objectives and Policies

The Trust's major investment objectives include:

  • Preserving the Trust's capital so funds are maintained for future generations.
  • Achieving stable income streams and modest capital growth without undue risk to meet current spending needs and the longer term goals of the First Nation.
  • Ensuring the Trust is prudently diversified to minimize risk.

It is our assessment that the investment activities of the Trust and the Investment Managers in 2017 were in compliance with these important investment objectives.

W. Shupe & Company
Investment Consultant to The Kahkewistahaw 1907 Specific Claim Trust


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Investment Managers Report

The Trust's investments in Barrantagh Investment Management are made on a "Segregated Account" basis in which all of the Trust's investment are not pooled with other investors but maintained and registered in a separate account held in the Trust's name. This approach allows the investment manager to specifically tailor the investment to meet the Trust's objectives.

Wally Kusters, Barrantagh Investment Management
Investment Manager Manager to The Kahkewistahaw 1907 Specific Claim Trust

The Trust's investments in Phillips Hager & North Investment Managementare in several different "Pooled Funds". Pooled funds are very similar to Mutual Funds. Each Pooled Fund in which the Trust invests has specific investment objectives appropriate to the Trust's investment policy. Becasue the Trust's investment in each Pooled Fund is pooled together with other investors, the Pooled Fund has significant economies of scale and thus provides the advantage of braod investment diversification with lower investment costs.

Gordon Keesic, Phillips Hager & North Investment Management
Investment Manager Manager to The Kahkewistahaw 1907 Specific Claim Trust

 

 


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Land Acquisition

Background

Under the terms of the Chief Kahkewistahaw Settlement Agreement, the Trust is required to purchase 29,000 acres of land within the Province of Saskatchewan and transfer these lands to Reserve Status within 30 years of the effective date (November 25, 2002) of the Settlement Agreement. There remains 14 years to purchase a balance of 16,915.97 acres. In order to attain our goal, we will be required to purchase at least 7.5 quarter sections (1,208.28 acres) of land every year for the next 14 years.

Priorities

The priority of the land purchases has been within the Kahkewistahaw surrendered territory. These lands hold cultural and historical significance to our people. However, the Chief and Council and Trustees are working on the Land Acquisition Strategy. Lands that have economic development opportunity will take precedent to take advantage of the growing mining, and oil & gas industries, but the First Nation will also continue with the purchase of agricultural lands within and nearby of the surrendered territory to expand our current Indian reserve land base, along with carefully pursuing urban land acquisitions.

Judy Wasacase
Trust Lands Officer

Elders Comments

I would like to thank you for having me here today, I was at a Chief and Council meeting one time and was very honoured to be able to sit with them and see all the things going on in our community.

Sitting here with the Trust, I always wondered why are we buying this land, sitting here with you I understand now that you are doing this for the people, for our future. I am really happy you invited me here. Thank you.

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