Nunavut Trust posts record high earnings for 1999

MICHAELA RODRIGUE

IQALUIT — The Nunavut Trust’s investments have produced record-high earnings of $48.5 million for the year ending Dec. 31, 1999.

The earnings exceed last year’s $31.6 million return, but Nunavut Tunngavik Inc. won’t have to debate how the money should be spent.

A payment of $20.6 million will go towards Nunavut Tunngavik Inc., while another $20 million will kick-start a new investment company called the Nunavut Economic Development Trust, a Nunavut Trust press release states.

The remainder will be used to fund other beneficiaries’ programs, including the elders pension trust.

“I think our money managers have been investing very well and for that reason we’ve got another good year again,” said Peter Kritaqliluk, chair of the Nunavut Trust.

Last year, NTI members had to decide what to do with an $11-million “surplus” after the Nunavut Trust posted earnings of $31.6 million. Some beneficiaries suggested that the money should be paid out as the first-ever cash dividend to individual beneficiaries.

NTI members eventually decided to use the $11 million to pay down part of its $92 million debt to the trust. Members also decided to create a new investment company that would be funded as a beneficiary of the trust, with up to $50 million.

Kritaqliluk said this year’s high returns allow the Nunavut Trust to fund the new investment company without dipping into its capital.

“They would have had to borrow another $20 million out of capital money,” Kritaqliluk said.

This year’s investment returns are for the 1999 year ended Dec. 31, just months before this spring’s stock market upheaval.

On April 14, North American stock markets posted record lows.”We had some concerns within that area. We’ve been watching the markets go up and down. Our investment advice committee has been watching that very closely ” he said.

By April 19, the market value of the trust’s investments were $632 million, down from $659.8 million at the end of March, Kritaqliluk said.

However, Kritaqliluk said, the trust’s market value has since rebounded – he could not give exact figures – and no major changes in investment strategies have been implemented.

About 40 per cent of the trust’s money is invested in Canadian bonds. Most of the rest is invested in foreign and Canadian stocks.