SovereignWealthFunds.comLittle Red River Cree Nation Sovereign Wealth Fund
Little Red River Cree Nation Sovereign Wealth Fund: what it invests in
Geography Global
Little Red River Cree Nation Sovereign Wealth Fund: how big it is, and on what basis
Little Red River Cree Nation Sovereign Wealth Fund: what it publishes
Published 2 · Partly 1 · Not published 7
Our 10 item score. It measures what is public, not how well a fund is run.
At a glance. The Little Red River Cree Nation Sovereign Wealth Fund is a trust holding the C$239.4 million Treaty Agricultural Benefits Claim settlement Canada paid to the Nation in northern Alberta. A corporate trustee invests it for the Nation's long-term benefit. After a one-time C$20,000 payment to each member, it pays the Nation 4 percent of its five-year average market value each year, and authorised C$36.2 million of distributions in fiscal 2022. S2 S1
Key points
- Funded by a C$239.4 million settlement from Canada, ratified in fiscal 2020. S2
- Each adult member received a one-time C$20,000 payment; minors receive the same at 18 with 4 percent annual interest. S1
- Annual Payment of 4 percent of the average 31 December market value over the prior five years. S1
- Distributions of C$36.2 million to the Nation in fiscal 2022 and C$25.9 million in fiscal 2021. S2
- Invested under a Statement of Investment Policies and Procedures and Alberta's Trustee Act. S1
- The trust is not consolidated in the Nation's statements, and its market value is not published. S2
Interesting facts
Mandate and goals
The trustee safeguards and invests the settlement so it serves the Nation over the long run, releasing money only for purposes the agreement lists. S1
How it invests
| Industries | Financial services. Sector agnostic S1 |
|---|---|
| Asset classes | Public equities, Fixed income, Cash and money markets S1 |
| Stages | Public markets, Credit S1 |
| Geography | Global. Not published S1 |
| Direct / through funds / co-invest | No / Yes / No S1 |
| Managed in house | 0 percent S1 |
| Ticket size | Not applicable; the trust holds a managed portfolio. S1 |
| External managers | Registered investment managers appointed by the trustee; names not published S1 |
| Co-investment programme | None S1 |
Published criteria
Past investments
| Year | Investment | Type | Sector | Stage | Amount |
|---|---|---|---|---|---|
| 2020 | Treaty Agricultural Benefits settlement. Trust flow, not an investment; capital paid by Canada. S2 | State asset transfer | Financial services | Public markets | C$239.4M |
| 2021 | Distributions to the Nation, FY2021. Trust flow, not an investment. S2 | State asset transfer | Financial services | Public markets | C$25.9M |
| 2022 | Distributions to the Nation, FY2022. Trust flow, not an investment. S2 | State asset transfer | Financial services | Public markets | C$36.2M |
Case studies
From treaty claim to endowment S2 S1
- What: Placed a treaty settlement in a trust with a fixed payout rule and a member distribution.
- When: 2018 to 2022
- Size: C$239.4M
- Why: Turn a one-time settlement into lasting income for the Nation.
- Outcome: C$62.1 million distributed to the Nation across fiscal 2021 and 2022.
Investment process
Chief and Council appoint the trustee and an independent investment consultant. The consultant advises on the investment policy and on choosing and monitoring managers. S1
- Council approves the investment policy. S1
- Trustee hires and oversees investment managers. S1
- Trustee reports yearly to Council and the consultant. S1
- Annual Payment flows to the Nation. S1
How to approach: The fund page is limited to site members; no outside approach route is published. S5
Size and returns
Leadership
| Name | Title |
|---|---|
| Conroy Sewepagaham | Chief, Little Red River Cree Nation S4 |
Governance and transparency
- Legal basis: Trust agreement of 25 August 2018 under Alberta's Trustee Act S1
- Oversight: Chief and Council, member referendums for amendments, optional audit of trust accounts S1
- Two community information meetings a year on the trustee's report. S1
- Note 15 of the Nation's audited statements covers the trust. S2
Transparency score: 2.5 of 10 (band 2 of 5). Our own 10-item rubric; see the methodology page.
History
For family offices
The trust invests through managers for the Nation and has no co-investment programme. S1
Reports
- LRRCN consolidated financial statements, March 2022: https://lrrcn.ab.ca/wp-content/uploads/2022/11/Little-Red-River-Cree-Nation-Mar-31-2022-FS.pdf S2
- Trust agreement: https://lrrcn.ab.ca/wp-content/uploads/2021/05/LRRCN-Sovereign-Wealth-Fund-18-07-25.pdf S1
Common questions
Where did the money come from?
A C$239.4 million Treaty Agricultural Benefits Claim settlement from Canada. S2
How much does it pay out?
4 percent of the five-year average market value each year. S1
Who manages it?
A corporate trustee, using registered investment managers. S1
Related profiles
- Ontario First Nations Sovereign Wealth Fund Canada (Ontario) · C$634.2M
- Canada Pension Plan Investment Board Canada · C$863.6B
- Alaska Permanent Fund United States (Alaska) · USD 91.9B
- New Mexico State Investment Council (SIC) United States (New Mexico) · USD 74.63B
- Texas Permanent School Fund United States (Texas) · USD 60.6B
- Texas Permanent University Fund (PUF) United States (Texas) · USD 40.29B
All sovereign wealth funds in North America · All savings and future generations funds · All funds in Canada
Sources
Disclaimer
Informational only. SovereignWealthFunds.com is an independent public-source reference. It is not affiliated with or endorsed by any fund named on it, and it is not investment, legal or tax advice. Figures are as of the dates shown next to them and may have changed; please read each fund's official pages, linked on its profile. To report an error, use the contact page. Copyright SovereignWealthFunds.com. All rights reserved.
