The Mohawk Council of Kahnawà:ke (MCK) wishes to inform the community that it will be making a structural change to the Kahnawà:ke Sovereign Wealth Fund (KSWF). The KSWF’s public securities portfolio and certain direct investments, including the Des Cultures and Les Jardins wind farms, and the Hertel Interconnection Line, will be held by a new limited partnership called Kahnawà:ke Sovereign Wealth Fund Limited Partnership (KSWF LP).
As part of this change, a portion of MCK’s Revenue & Business Development Unit (RBDU) and its mandate will move into a new entity, Kahnawà:ke Sovereign Wealth Management Inc. (KSWM). KSWM will be managed by the same persons that currently manage RBDU and will be responsible for administering the day-to-day operations of the KSWF LP and continuing the RBDU’s mandate of generating own-source revenue for the MCK on behalf of the community. KSWM will be overseen by a board of directors appointed by the MCK.
This restructuring follows the recommendations of external financial and legal advisors and reflects a model widely used by other First Nations for their economic development initiatives. The new structure will provide important benefits:
- Limitation of Liability – Protects KSWF assets by ring-fencing them from liability.
- Tax Efficiency – Preserves and optimizes Kahnawà:ke’s tax-exempt status in accordance with best practices.
- Clear Governance – Ensures business decisions are insulated from day-to-day politics while maintaining MCK oversight.
- Partnership Readiness – Establishes a credible and professional vehicle for attracting institutional partners.
- Independent Financing – Enables KSWF LP to raise capital independently for economic development projects without encumbering the MCK’s balance sheet, thereby preserving borrowing capacity for government services and infrastructure.
The KSWF was established to grow the community’s own-source revenue and reduce reliance on external funding. As previously committed, all capital gains from the public securities portfolio and revenue generated in the Hertel Interconnection Line, Des Cultures, and any future revenue generated from projects with similar investments by Kahnawà:ke and the KSWF LP, will continue to be reinvested until fiscal year 2034-2035 to allow the fund to grow and compound. After this period, a distribution policy will guide sustainable allocations to the MCK for community initiatives while preserving growth of the fund for the benefit of future seven generations.
The KSWF LP will have annual reports on the performance of the fund made publicly available online.
