Message from the Chair
Message from the Chair – January 2011
It is that time of year again when the Gwaii Trust takes a brief time out to look back at the year that was and to reflect on our accomplishments in 2010. In my first year as Chairperson for the Trust, I must say that I was initially overwhelmed with the amount of complexity that surrounds the management of the Trust’s investments, as well as the allocation of those earnings. Depending on your perspective, what the Trust is doing can be viewed from two very different perspectives. At all times, the Board of Directors need to wear two very important and very different hats, one focuses on the earnings of the Trust’s investments, (financial trustee) and the other focuses on how to allocate the earnings of the Trust’s investments (community trustee). Other trusts usually have separate trustees, or Board members that focus specifically on one or the other of these important roles of earning and spending. However Gwaii Trust is unique in its model; Board members are responsible for both the earnings and spending of the Trust’s investments. This is the main reason why being a Board member for Gwaii Trust can, at times, be so complicated.
The Board has had a tremendous year in terms of the financial trustee responsibilities it holds. The Board went through a very comprehensive year of training in the world of investing as we took tremendous strides in actively managing the investment portfolio of both Gwaii Trust and the Gwaii Forest Charitable Trust, which are collectively valued at approximately $95 million dollars. The world of investing used to be categorized in simple ways; you were either investing in equities (stocks) or bonds. Since the market collapse of 2008, the world of investing has taken a dramatic turn towards diversification. Diversification can be looked upon as, “not having all of your eggs in one basket.” Our investment portfolio now has new investment instruments such as real estate and high-yield bonds, we have also shifted to a more balanced portfolio of stocks and bonds, with a movement of gradually putting a little more weight into the equity markets. The world of Gwaii Trust revolves around our ability to produce cash, to produce income, in order to allocate these earnings to the communities of Haida Gwaii. The Board of Directors should be commended for their accomplishments this year in this realm. It is something that is never seen, nor acknowledged, because the reality of Gwaii Trust is that most residents feel the impacts of the Gwaii Trust in terms of spending, or what the Trust is spending its earnings on.
So let’s talk about spending. After the Board of Directors finishes the discussions on earnings, they then have to change hats and focus on the spending. Each year, the Board focuses on the following spending responsibilities: portfolio management, administration, and programming. Each of these areas are continually looked at in terms of, “How can we save the Trust money,” and “What can we do to maximize the effectiveness of the spending in areas that are of top priority to the Islands communities.” The greatest change that is coming is a change in programming. The Board is currently looking at a rep-prioritization of the needs of Haida Gwaii, which is based on their interaction with the communities they represent. The priorities of Haida Gwaii can be categorized into two main areas: economic development and youth. The Board is currently working on a reconstruction of the existing programs to reflect the new priorities. The Board will be engaging the communities throughout 2011 to receive input and feedback as we work towards ensuring the relevancy of our programs and the effectiveness of how Gwaii Trust allocates its earnings.
The current Board of Gwaii Trust has been together for the duration of the 2010 year and so far we are very pleased with the re-appointment of Board members for additional terms. Continuity is something that is critical to the success and accomplishments of the Trust and we are very pleased that this continuity is in place as we move forward in 2011. I would also like to take the time to acknowledge and thank Cynthia Samuels, who is the outgoing Director for CHN Masset, for her four (4) years of service on the Gwaii Trust Board. I also would like to give a special acknowledgement and thank you to Warren Foster as the outgoing Director for the community of Sandspit. Warren is one of the founding fathers of Gwaii Trust and has been around since the inception of Gwaii Trust, which is now almost 16 years ago. On behalf of the Board of Directors, I would like to thank Warren for his dedication, his knowledge and his perseverance. Warren was a great advocate for all of Haida Gwaii and I know that he will be missed at the Gwaii Trust table. Good luck Warren and Cynthia, we wish you all the best in your future endeavours. I would also like to recognize Ian Hetman, Ron McKee, David Crosby (Stinker) and Rose Russ for their past service to Gwaii Trust. It is only by the passion and commitment of these, and the many other Directors before them, that we are able to make the changes before us today.
November, 1985, Athlii Gwaii (Lyell Island)