A new sovereign wealth fund has been created for native Canadian groups in Ontario as part of an agreement with the provincial government to sell a stake in electric utility Hydro One.
The deal between the Ontario government and 129 First Nations groups in Ontario will create the Ontario First Nations Sovereign Wealth Fund, said Bryan Hendry, spokesman for Chiefs of Ontario, which represents the First Nations groups.
Along with C$29 million ($23 million) in seed capital from the Ontario government, the fund will hold the 14 million shares, or a 2.4% stake, in Hydro One that the 129 groups acquired from the provincial government for C$259 million in a deal that closed Jan. 2, Mr. Hendry said.
Mr. Hendry said the First Nations groups over the next six months will be jointly working on an investment policy and asset allocation, as well as appointments of board members, a CEO and chief investment officer.
A headquarters for the new fund has not been determined, though Mr. Hendry said it most likely will be in Toronto.