The board and management understand the power of a long-term investment portfolio and the stable dividend stream it provides for shareholders. Passive investment income can provide diversity to operational business. Sealaska has the fiduciary duty to maintain a long-term investment strategy and to protect the funds from negative business results.
Marjorie V. Young Shareholder Permanent Fund
The Sealaska board of directors named the Sealaska Permanent Fund after long-serving director Marge Young in 2009. The fund is formally known as the Marjorie V. Young Shareholder Permanent Fund. The Shareholder Permanent Fund was established in 1987 to be a consistent source of dividends for shareholders. Sealaska constantly evaluates the risk exposure of the portfolio and makes changes to lessen risk, as long as it doesn’t affect long-term expected returns.
Investment and Growth Fund
The Investment and Growth Fund is managed with both short-term and long-term investments horizons and is used for both operational needs and new investment. The management focus of the fund is to grow principal with a prudent level of risk, maintain sufficient liquidity to fund Sealaska’s current business operations, and provide a source of capital for corporate development.
Elders' Settlement Trust
The Elders' Settlement Trust (EST) is a grantor trust created to provide a special economic benefit to original shareholders at the age of 65. A board of trustees governs the EST. The EST assumes a long-term annualized rate of return of seven percent in order for the trust to meet the estimated benefit payments.
Sealaska leadership set aside $2,500,000 in 1989 to establish the Scholarship Endowment Fund. Earnings from the fund, along with timber revenues, provide shareholder scholarships in perpetuity.
The Alaska Native Brotherhood (ANB) Endowment was funded with $500,000 in 1989 to celebrate the 75th anniversary of the ANB and ANS and offer operating support for the organizations to continue advocacy work. The endowment funds are managed to a long-term investment horizon, which targets providing meaningful annual contributions after accounting for inflation.