The Northwest Territories Heritage Fund transforms non-renewable resource revenues into a sustainable, income-generating financial asset, securing a perpetual source of revenue for the future.
About the Northwest Territories Heritage Fund
The Northwest Territories Heritage Fund was established in 2012 to invest non-renewable resource revenue.
The first three deposits of $250,000 each in 2012-13 to 2014-15 were intended as “seed” deposits before the responsibility for the management of lands, waters and non-renewable resources were devolved to the Northwest Territories. Since devolution, deposits are equal to 18.75% of the Net Fiscal Benefit from resource revenues (or 25% of the remaining Net Fiscal Benefit after payments to signatories of the Devolution Agreement).
The Fund has been professionally managed since April 2019 and its selection of investments includes “A”-rated bonds and a minority exposure to equities to a maximum 25 per cent of stocks in the Fund’s portfolio.
The Fund’s principal cannot be withdrawn. No withdrawals from the Fund are permissible for 20 years from its establishment in 2012 until January 1, 2033.
Legislation
See the Northwest Territories Heritage Fund Act and Northwest Territories Heritage Fund Regulations.
Management and Oversight
The Financial Management Board acts as the trustee, overseeing the fund, and can assign administrative duties to the Secretary of the Board, who can then contract with a fund manager. The Secretary of the Financial Management Board Secretariat is also responsible to have an external audit performed on the annual financial statements of the Fund.
Investment Manager
CIBC Wood Gundy (CIBC) manages the Fund’s investments. CIBC charges a management fee of 0.20% per year of the assets managed (billed monthly). There are no other commissions or fees payable, including custodial fees, setup fees, management fees and wire transfers and CIBC pays all expenses related to the annual in-person meeting.
The Secretary of the Financial Management Board Secretariat instructs CIBC on the type of investments to make, based on the Northwest Territories Heritage Fund Regulations.
To allow the external fund managers to maximize long-term returns without undue risk of the Fund’s principal, the Fund’s regulations were revised so that:
- Credit Quality restriction is “A” or higher.
- Issuer Restrictions - the restriction of Canadian Chartered Banks allows the use of bonds with a term of greater than one year.
- Equities to a maximum of 25 per cent of the portfolio value are permitted investments.
Standing Committee on Government Operations
Every ten years, the Legislative Assembly is required to review the Northwest Territories Heritage Fund Act to ensure that it continues to be effective in ensuring that future generations of people from the NWT benefit from development of non-renewable resources. The Standing Committee on Government Operations (SCOGO) is undertaking the review of the Act and has developed a workplan that will include a combination of public hearings and a variety of research methods. The Committee intends to bring its report to the House in Spring 2026.
Publications
The Department of Finance publishes the annual financial statements of the Fund as part of the Public Accounts (Section 3) each year. Links to past years’ financials statements are available online:
Please note that these reports are available in English only. If you would like this information in another official language, call 867-445-2493.