On behalf of T.E. Wealth’s Indigenous Investment Advisory practice, we remain extremely honoured to support the Peguis First Nation TLE Trust and its’ ongoing investment advisory needs. Our role continues to include the provision of independent and objective advisory assistance relating to:

  • Planning and implementation of current and future investment strategies
  • Citizen communications and consultation as required
  • Ongoing development of the Trust’s Investment Policies & Guidelines
  • Ongoing monitoring/measurement and safeguarding of Trust investments

 Our objective is to assist the Trustees in creating a state of Sustainable Wealth that balances the needs of the present without compromising the ability of future generations to meet their own needs. To  nurture and grow the tree that provides  the fruit for both today and tomorrow.

Market Commentary – “A Year in Review”

The investment markets ended 2019 on a high note. Canadian equities had a strong year, with the TSX rising by almost 23%. This rise was driven by the Information Technology (IT) sector, which returned just under 65% over the year. Global Equities also had a positive year, with U.S. technology stocks in particular rising as the American market continued to set new records in the final quarter. U.S. trade tariffs on China were scheduled to increase on December 15, 2019, but the Phase 1 trade deal avoided that outcome and provided a relief to equity markets. Bond performance contributed positively to balanced portfolios as well, as Canadian bonds were up 6.88% in 2019.

Trust Returns against Market Benchmarks

We are pleased to report that the combined holdings of the Peguis First Nation TLE Trust appreciated 10.95% in absolute terms over the year, which beat the market benchmark return of 10.78%. Worth noting, the Trust continues to provide a very solid average annual return since inception of 6.48% or an appreciation of $27,100,122, which has added value over the market benchmark return of 0.83% as illustrated in Chart 2 below. The Peguis First Nation TLE Trust is managed under a multi-manager structure as a risk management strategy thus diversifying the investment risk between two investment management firms being Beutel, Goodman & Company Ltd. (Value style manager) and Mawer Investment Management Ltd. (Growth-oriented strategy). Over time, the markets will tend to favour one style of management or another hence the benefits of such manager diversification.

Chart 1 – 1 Year Rates of Return as at December 31, 2019

 

Chart 2 – Since Inception (Annualized) Rates of Return as at December 31, 2019

We are pleased to report that as of December 31, 2019, the Peguis First Nation TLE Trust is compliant with all mandatory requirements within the Trust Agreement and Investment Policies and Guidelines.

The chart below highlights the breakdown of the Trust’s security holdings and the respective targets and ranges as of December 31, 2019.

Community Fund

 

Cash & Equivalents

Fixed Income

Canadian Equities

Global Equities

         

Current

4.6%

43.3%

16.7%

35.4%

Target

5.0%

45.0%

17.0%

33.0%

Ranges

0.0% - 10.0%

40.0% - 50.0%

12.0% - 22.0%

28.0% - 38.0%

Chart 4 - Portfolio Valuation as at December 31, 2019

Community Fund

*Valuations may differ slightly to other financial reporting as a result of differences in accrual rates and foreign exchange conversion rates.

Implementation Fund

*Valuations may differ slightly to other financial reporting as a result of differences in accrual rates and foreign exchange conversion rates.

We are pleased to confirm that the investments have appreciated over $27.1 million dollars since inception while also providing a net transfer to the Peguis First Nation of over $43.2 million dollars.

In Closing

T.E. Wealth’s Indigenous Services practice considers it a privilege and an honour to support the Peguis First Nation TLE Trust and we are pleased to confirm that the Trust portfolio continues to exceed market benchmarks and policy expectations since its inception.