Frequently Asked Questions

KSWF LP exists to generate own-source revenue for the Mohawk Council of Kahnawà:ke (MCK), on behalf of the Mohawks of Kahnawà:ke. It does this through returns today and long-term growth for seven generations. The 100-year goal is a community that can fund its own priorities without depending on outside sources.

The Fund has four jobs. First, it builds lasting wealth for Kahnawà:ke to reduce the community's reliance on external government funding. Second, it limits risk by diversifying the community's income across more than one sector or strategy. Third, it grows money that is not yet invested in projects. Fourth, it keeps that money exposed to the markets and protected from inflation in the meantime.

The Fund is built for the long term, with a 100-year vision of financial independence for Kahnawà:ke. For the first ten years, all available cash stays in the Fund to build its base. Growth comes mainly from compounding and reinvestment, not from paying money out early.

The Fund is made up of two portfolios. The Public Securities Portfolio is money invested on the public market and managed by third-party investment management firms. The Alternative Investment Portfolio consists of direct investments in major projects within sectors identified as being of interest to Kahnawà:ke.

• Tax status: It helps preserve the tax-exempt status of the community's investment income. • Limited liability: MCK's exposure is generally limited to what it has put into the Fund. • Protecting community assets: The Fund and each project are kept separate from MCK's other assets. • Separating business from politics: Investment decisions are made by a professional board, with the Council of Chiefs approving major steps. • Speed: The board can act on opportunities without waiting for a Council meeting on every decision. • Its own balance sheet: The Fund can borrow and invest in its own name, providing easier access to financing and loan guarantees.

• KSWF LP is the Fund itself, a limited partnership formed on June 30, 2026. • MCK is the limited partner. It holds all voting units and receives 99.9999% of distributions. • Kahnawà:ke Sovereign Wealth Management Inc. (KSWM) is the general partner. It is a corporation owned by MCK and manages the Fund. • Each alternative investment is generally held in its own separate company owned by the Fund.

KSWM is a corporate entity that manages and administers the Fund and acts as its agent. It has its own board. As the general partner, KSWM assumes all of the Fund's liabilities. This limits MCK's liability in its capacity as limited partner and, most importantly, protects the community's assets.

The board is designed to have five directors: • Three directors with investment, governance, or business experience, chosen with priority for MCK employees or officers, but not elected Chiefs. • One Kanien'kehá:ka of Kahnawà:ke, independent of MCK. • One Kahnawakeró:non, independent of MCK. Directors serve terms of up to three years, renewable once. MCK can replace a director only at the end of a term, upon resignation, or for cause such as a breach of duty or misconduct.

Day-to-day work is carried out by KSWM's staff. MCK's Revenue and Business Development Unit (RBDU) and Legal Counsel are seconded to KSWM to save costs. The public securities portfolio is managed by outside professional managers.

For the public securities portfolio, external money managers have been selected through a competitive process. KSWM reviews their performance and can make changes if the public securities portfolio underperforms its index. For alternative investments, KSWM continually reviews projects to find those that fit the Fund's risk profile and align with the community's values. Very few opportunities reach the investment stage. Before an investment decision is made, it must be brought to the board for approval. The Council of Chiefs must also approve any direct investment over $500,000, borrowing over $5 million in a year, and any investment outside the Investment Policy.

The public securities portfolio holds stocks, bonds, and cash through outside managers. It is liquid and diversified, and it grows the Fund's money until it is needed for projects or distributions. The alternatives portfolio holds direct investments in projects such as infrastructure, real estate, and renewable energy. These investments are less liquid and longer term, and they are expected to earn more than the public portfolio.

Under the Investment Policy, projects should meet these targets: • An internal rate of return of at least 10% after cost of capital. • A positive net present value at an 8% to 10% discount rate. • Payback within 10 years or less. • An equity multiple above 1.5x over the life of the investment. • A better risk-adjusted return than the public securities portfolio. The Fund also favors projects with steady cash flow and monitors its exposure to any single investment or partner. Projects are stress-tested by external experts to identify and reduce downside risk.

Every project goes through legal, financial, operational, and reputational due diligence. KSWM brings in outside experts selected for each project to provide an independent sensitivity analysis. The board then decides whether the project meets the Fund's thresholds, and the Council of Chiefs approves it where required.

Wherever possible, the Fund uses project financing, including equity, debt, and loan guarantees, so that its own cash is used as little as possible. The policy requires commercially reasonable efforts to secure loan guarantees and financing that cannot be claimed against the Fund's other assets.

The policy allows infrastructure, renewable energy, real estate, private equity, venture capital, Indigenous partnerships, and other investments that fit the community's values.

The Kahnawà:ke Sovereign Wealth Fund was created in 2023 with $32 million held by MCK. These funds originally came from the sale of shares in Continent 8 Technologies in 2016. In 2026, the Fund was restructured as a limited partnership. Those assets and MCK's interest in Kahnawà:ke Sustainable Energies Inc. (KSE) are being rolled into the LP. The Fund's value at KSWF LP's inception in 2026 was approximately $40 million.

No. The Fund is intended to sustain itself through its own growth. MCK may choose to contribute more, at its sole discretion, to reach financial independence for the community sooner. The only other calls on MCK are limited to pass-through items, such as government reimbursements or tax credits tied to a project, and spending that MCK itself has approved.

The first possible distribution is April 1, 2035. After that, the annual payout is capped at the lesser of two limits: a percentage of the Fund's average value and a percentage of its average recurring cash. The caps begin at 1.5% and 20% and rise gradually to 4% and 30% by the 2070s.

A young fund needs to build a base before it can pay out safely. Reinvesting early builds a larger, steadier Fund for future generations. Paying out too soon would slow that growth.

KSWM will not have any say in how distributions are used. The purpose of the Fund is to generate and pay distributions to MCK. MCK is in the best position to determine how distributions should be used in the best interests of the community. With growing community infrastructure needs, these distributions are expected to help cover those costs.

Alternative investments are selected first for their financial returns, but there are sometimes opportunities to negotiate additional donations that support immediate community development. For example: • In connection with the Hertel-New York Interconnection Line, Hydro-Québec donated $10 million to the Kanatahkwèn:ke Cultural Arts Center. • The Des Cultures Windfarm donated $500,000 to the Kanatahkwèn:ke Cultural Arts Center. Over the long term, returns from these projects also build the Fund's wealth, which will support the community through distributions to MCK beginning in 2035.

Every investment carries risk. Risks are managed by diversifying across asset classes, sectors, and geographies. Outside managers run the public portfolio under strict limits, with no borrowing and no short selling. Each project sits in its own company to ring-fence liability so that one investment does not affect another. The Fund also seeks project financing to limit the use of its own cash.

The Fund is audited every year by an independent auditor. Within 60 days of each fiscal year-end on March 31, KSWM must give MCK audited financial statements, an annual report on performance and valuation, a distribution report, and a five-year outlook. MCK can examine the Fund's books at any time. KSWM will also publish public-facing annual reports on its website.

Yes. Engagement will be regular and subject to information that can be shared under commercial confidentiality requirements. Deeper engagement may be triggered by the nature of a project and its impact on the community. The steps are: 1. Impact: The community hears about a project that may affect its interests at a key phase of project development. 2. Clear information: We share a plain-language summary of the project, its risks, and its benefits, and hold community sessions. 3. Listening: Community members can comment at sessions, in writing, or directly to KSWM. 4. Reporting back: We explain what we heard and how it shaped the decision. 5. Ongoing updates: We report regularly on the Fund's progress.

You can contact us at info@kswf.ca and we will do our best to respond within a reasonable time.