UNDERSTANDING THE BAND'S INVESTMENT COMMITTEE
How the committee was created and the role it plays in overseeing the Band’s investments
By Vivian LaMoore, Inaajimowin Editor
The Mille Lacs Band of Ojibwe created an Institutional Investment Committee in December 2021 to help guide the management of the Band's investment portfolio and support long-term financial stability for future generations.
The committee was established through Ordinance 15-22, which amended Title 17 of the Mille Lacs Band Statutes. The ordinance was introduced to the Band Assembly and approved on December 1, 2021, formally creating the committee and outlining its responsibilities in overseeing the Bands investments.
The purpose of the Institutional Investment Committee is to assist the Secretary-Treasurer in overseeing the Band's investments and monitoring the performance of investment assets. The committee helps guide investment strategy while ensuring that decisions follow the Band's investment policy and long-term financial goals.
Focus on long-term financial stability
The ordinance outlines several guiding principles for the Band's investments. These include providing for the well-being of current and future generations of Band members, maintaining responsible risk management, and diversifying investments to strengthen long-term returns.
While the Band may pursue investments designed to grow assets over time, the policy also emphasizes protecting the Band's financial stability and ensuring that investments support the Band's ability to fund government operations and services.
Who serves on the committee
The Institutional Investment Committee may include up to eight voting members and one non-voting member. Voting members include:
• The Secretary-Treasurer, who serves as chairperson
• The Commissioner of Finance
• One Band member with financial or investment expertise
• Between three and five investment professionals with diverse financial backgrounds
• The Chief Executive serves as a non-voting member of the committee.
Investment professionals are nominated by the Secretary/ Treasurer and approved by the Band Assembly. Their terms are staggered to ensure continuity in the committee's work.
What the committee does
The Institutional Investment Committee plays an oversight and advisory role in the management of the Band's investment portfolio. Its responsibilities include:
• Reviewing the Band's Investment Policy Statement each year
• Monitoring the performance and risk of the Band's investment portfolio
• Evaluating investment managers and advisors
• Reviewing market conditions and investment strategies
• Approving the investment budget and contracts, subject to ratification by the Band Assembly
• Preparing regular reports for the Band Assembly on investment performance
• The committee also hires and oversees the Chief Investment Officer, who is responsible for implementing the Band's investment strategy and managing investment staff and advisors.
Oversight and accountability
The ordinance requires the committee to operate under clear ethical standards. Members must avoid conflicts of interest, maintain confidentiality regarding investment matters, and exercise prudent judgment when making decisions affecting the Band's financial assets.
The committee must meet at least once each year, though it typically meets more frequently to review performance and discuss investment strategies.
Through this structure, the Institutional Investment Committee helps ensure that the Band's financial resources are managed carefully and strategically. By monitoring investment performance and advising on long-term strategy, the committee supports the responsible stewardship of Band assets for the benefit of current and future generations of Mille Lacs Band members.
The full ordinance can be found at: