Wealth Fund grows in first year

The community is more than $4 million richer after the Kahnawake Sovereign Wealth Fund (KSWF)’s first year of investment, a 13 percent return, but it’s still a long way to go to $1 billion.

That’s the amount the Mohawk Council of Kahnawake hopes to reach with the fund over the next 100 years.

“When you think about future generations, if we have an investment fund of $1 billion plus, then we’ll really be in control of our future, financially independent, able to make our own decisions, and invest in our sovereignty without the restrictions that come with external government funding,” said MCK chief Paul Rice, who leads the economic development portfolio.

Kahnawa’kehró:non won’t have to live 100 years to see a benefit, however, according to Rice. After about a decade, if the fund continues to grow, the goal is that dividends will begin to flow back to the MCK to be allocated to community initiatives and needs.

In the near future, a community initiative fund will be topped off to $3 million, Rice said.

“Council is in a really good financial position, being very prudent with our investments for the long-term, and we’re in the process of structuring or restructuring existing programs to ensure there’s funds available to address immediate community needs.”

The KWSF sits at $37.3 million as of March 31, and the $4.26 million that it grew in fiscal year 2024-2025 soared past the seven percent target that had been set.

The fund is allocated to 40 percent market equity and 40 percent fixed income, meaning secure investments like bonds. The other 20 percent is for alternative investments, including business ventures. The Des Cultures Wind Farm falls into this category and paid a nearly $2 million dividend.

The Hertel line is another, and the MCK is currently mulling over whether to increase the community’s stake in it from 10 percent to 49 percent.

The fixed income investments are managed by Canaccord, while the market investments are through a fund managed by Giverny Capital, which oversees a portfolio that includes dozens of blue-chip stocks. The MCK does not pick and choose specific market investments.

“Our focus is on having a proper asset allocation and a balanced portfolio,” said Rice.

There is no allocation to Canadian equities currently, according to Rice, but he said the MCK Investment and Revenue Committee is exploring the possibility. However, Council has asked that the investment managers exclude investments in pipeline projects and resource extraction projects in any evaluation currently.

“That’s been a position of Council, that we don’t want to invest in projects that take advantage of our expropriate resources from other nations, especially where the nation has not come to some type of an agreement or is not getting their fair share of the project itself,” he said.

US investments also follow the same principles, he said.

“I am not opposed necessarily to large project development, but large project development needs to come with equity, revenue, employment, and the nation with which that project is involved needs to get more than their fair share, and that remains our investment philosophy as it relates to projects that may be on either current reserve territory or unceded traditional territory.

Down the line, direct investment in renewable energy may play a bigger role in the overall portfolio, Rice said, but that the key will be to maintain a balanced portfolio.

“Every year that goes by we’ll become less and less reliant on government revenue, and every year that goes by we’ll be getting more and more control over our finances, which means more and more control over our future,” he said.

The funds for the KSWF originated from the sale of e-gaming company Continent 8 in 2016.

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Marcus Bankuti, Local Journalism Initiative Reporter