The FNFA offers 3 types of investment accounts, a bank account type fund for short term needs, an intermediary fund for higher earning mid-term investments, and a bond fund for long term investments.
THE MONEY MARKET FUND
Typically used for short term investments; the Money Market Fund’s main objective is to provide investors with a high level of current interest income earned by investing in the highest quality money market instruments with maturity of 366 days or less.
The Money Market Fund is fully liquid and amounts can be redeemed within 24 hours. In a rising interest rate environment, this offers your community the flexibility to monitor the markets and take advantage of investment opportunities rather than being locked into a fixed rate term deposit. Rather than investments in a single organization as is the case with term deposits, the Money Market Fund holds a portfolio of securities issued by federal and provincial governments, Canadian banks and highly rated quality corporations. This diversification reduces the issuer-specific risk that exists in a deposit with a single organization. For First Nation governments, this also provides access to corporate investments not allowed outside of the Money Market Fund, further enhancing diversification.
Click here for the MFA Ratings – Dec 31-16 Money Market
THE INTERMEDIATE FUND
The Intermediate Fund’s main objective is to obtain interest income and attempt, through prudent but active professional management of assets, to achieve moderate capital appreciation by investing primarily in the highest quality fixed income and money market securities with maturities of up to 2 years. Intermediate Fund investment accounts are suited for short to medium-term investments. The Intermediate Fund typically earns a little more than the Money Market Fund. From time to time, minor capital losses can be expected; however, historically the Intermediate Fund outperforms the Money Market Fund. Redemption period is 4 business days.
Click here for the MFA Ratings – Dec 31-16 Intermediate Fund
THE BOND FUND
The principal objective of the Bond Fund is to obtain interest income and attempt, through prudent but active professional management of assets, to achieve moderate capital appreciation by investing primarily in the highest quality fixed income and money market securities with maturities of up to 7 years. The FNFA’s Bond Fund investment accounts are meant to be used for long term investments of up to 5 years. The Bond Fund typically has the highest returns over the long-term. From time to time, capital gains and losses can be expected; however, historically the Bond Fund has outperformed both the Intermediate and Money Market Fund. First Nations investing in the Bond Fund will be able to access their money every Wednesday without penalty. Bond Fund redemption period is 4 business days.
Click here for the MFA Ratings – Dec 31-16 – Bond Fund