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EDIP SOVEREIGN WEALTH SOLUTIONS

CONTROL YOUR DESTINYA WEALTH GENERATION ENGINE FORFIRST NATION SOVEREIGN WEALTH

THE EDIP PLATFORMSUPPORTING FIRST NATIONS SOVEREIGNTY AND FINANCIAL INDEPENDENCE

(WORKSHOP P) 2:45 – 4:15 PMAFOA CONFERENCE - FEBRUARY 18, 2016

www.edip.coWELCOME TO OUR WORKSHOP

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CONTROL YOUR DESTINYA WEALTH GENERATION ENGINE FORFIRST NATION SOVEREIGN WEALTH

THE EDIP PLATFORMSUPPORTING FIRST NATIONS SOVEREIGNTY AND FINANCIAL INDEPENDENCE

(WORKSHOP P) 2:45 – 4:15 PMAFOA CONFERENCE - FEBRUARY 18, 2016


EDIP SUITE OF SERVICESA suite of services centered around putting in place an

integrated sovereign wealth plan.

OWN SOURCE REVENUESGenerating “Own Source Revenues” independent ofgovernment control.

WORKSHOP OVERVIEW www.edip.co

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WHO WE AREA multi-disciplinary network of experts, including lawyers, taxexperts, accountants, consultants, financial advisors, andothers, who have their own practices, businesses and firms.

EDIP VISION AND VALUESEDIP's mission is to give First Nations the sovereign wealth

planning tools, resources and support necessary toachieve financial independence.

THE OPPORTUNITYImprove quality of life and achieve financial independence.

EDIP SUITE OF SERVICESA suite of services centered around putting in place an

integrated sovereign wealth plan.


OWN SOURCE REVENUESGenerating “Own Source Revenues” independent ofgovernment control.

SECTION ONE | OWN SOURCE REVENUES www.edip.co

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EDIP SOVEREIGN WEALTH SOLUTIONSSECTION ONE | OWN SOURCE REVENUES

Like any government a First Nation's largest source of sovereign wealth is its "public assets".These include "financial assets" and "commercial assets".

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FINANCIAL ASSETSFinancial Assets are liquid investments, includingmarketable securities, which First Nations oftenhold in a Trust.

Public assets are the largestpool of assets in the world,larger than all the pensionfunds and mutual funds in

the world, and yet mostgovernments do not manage

these assets in a mannerthat maximizes returns to

the government.

PUBLIC ASSETSFirst Nations have anopportunity to centralizethese assets, separate themfrom political influence andmaximize returns in orderto supplement federaltransfers.Experts worldwide projectthat properly managed,public assets can returnenough to fund localinfrastructure needs withenough left over to improvequality of life.

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COMMERCIAL ASSETSCommercial Assets include real estate, infrastructurebenefits agreements and other assets that can be soldor leased or used to generate an income, includingbusinesses owned or controlled by the First Nations(called "state-owned enterprises").

Public assets are the largestpool of assets in the world,larger than all the pensionfunds and mutual funds in

the world, and yet mostgovernments do not manage

these assets in a mannerthat maximizes returns to

the government.

PUBLIC ASSETSFirst Nations have anopportunity to centralizethese assets, separate themfrom political influence andmaximize returns in orderto supplement federaltransfers.Experts worldwide projectthat properly managed,public assets can returnenough to fund localinfrastructure needs withenough left over to improvequality of life.


It is difficult if not impossible for First Nations to exercise sovereign rights when government controls their cash flow.

www.edip.co

The First Nations population is growing faster thanfederal transfers. Federal funding is insufficient to fundhousing, education and infrastructure, let alonefunding discretionary needs.

Even with the recent change in government, FirstNations are at the whim of federal political parties whohave different approaches to First Nations' funding.

FUNDINGCollectively Canadian FirstNations receivegovernment funding ofapproximately $10 billion ayear.

While governments have afiduciary obligation to fundFirst Nations, governmentfunding is subject to strictfunding conditions.

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The First Nations population is growing faster thanfederal transfers. Federal funding is insufficient to fundhousing, education and infrastructure, let alonefunding discretionary needs.

Even with the recent change in government, FirstNations are at the whim of federal political parties whohave different approaches to First Nations' funding.

FUNDINGCollectively Canadian FirstNations receivegovernment funding ofapproximately $10 billion ayear.

While governments have afiduciary obligation to fundFirst Nations, governmentfunding is subject to strictfunding conditions.


Opportunities Ahead

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The trend is for First Nations to gain even greater accessto own-source revenues as Canadian courts continue torender decisions that effectively require resource andenergy companies to partner with First Nations in theirtraditional territories, and First Nations continue togrow businesses and develop real estate andinfrastructure at a record pace.First Nations are also raising revenues by sharing the taxbase with federal and provincial governments andimposing taxation on reserve.Many First Nations also have market portfolios that theyhave built from claims settlements, land sales, and/orretention of business and investment income.

TRENDSOver the past quartercentury First Nations havemanaged to balance federalfunding with own sourcerevenues.

Collectively First Nationsgenerate as much in own-source revenues as theyreceive in governmenttransfers, although they areunevenly spread across thecountry.

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The trend is for First Nations to gain even greater accessto own-source revenues as Canadian courts continue torender decisions that effectively require resource andenergy companies to partner with First Nations in theirtraditional territories, and First Nations continue togrow businesses and develop real estate andinfrastructure at a record pace.First Nations are also raising revenues by sharing the taxbase with federal and provincial governments andimposing taxation on reserve.Many First Nations also have market portfolios that theyhave built from claims settlements, land sales, and/orretention of business and investment income.

TRENDSOver the past quartercentury First Nations havemanaged to balance federalfunding with own sourcerevenues.

Collectively First Nationsgenerate as much in own-source revenues as theyreceive in governmenttransfers, although they areunevenly spread across thecountry.


There are a series of challenges First Nations currently face that threaten their ability to rely on own source revenues as a way to offset theinsufficiency, unpredictability and restrictions of federal transfers.

www.edip.co

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ON RESERVELEGACY STRUCTURES

ECONOMIC DEVELOPMENTOFFICE

TRADITIONALTERRITORIES

COMMUNITY TRUST


There are a series of challenges First Nations currently face that threaten their ability to rely on own source revenues as a way to offset theinsufficiency, unpredictability and restrictions of federal transfers.

The federal government hasbeen aggressively taxing

income generated from off-reserve sources.

Own source revenues arevery unevenly spread outacross the country. Some

First Nations have ownsource revenues that dwarftheir government transfers.Others have almost none.

Most First Nations havenot diversified their

own source revenues,or put a plan in place to

build communitywealth in a systematic

manner.The federal government hasalso been forcing

consolidated reporting andthen clawing back some ownsource revenues from federal

transfers.

www.edip.co

SLIDE 8

ON RESERVELEGACY STRUCTURES

ECONOMIC DEVELOPMENTOFFICE

TRADITIONALTERRITORIES

The federal government hasbeen aggressively taxing

income generated from off-reserve sources.

In many cases communitymembers were never

consulted about how tocapture and grow own

source revenues.

Many First Nations have legacystructures that do not maximizetax efficiencies or incorporate

best practice governance.

Most First Nations do not have accessto the tools and experts needed to

analyze, select and manage businessand investment opportunities. Evenwhere First Nations have access to

experts, projects often call for amulti-disciplinary approach. Outside

experts are usually engaged forspecific assignments; when what is

needed is ongoing support andassistance.

Most First Nations in Canadahave economic developmentcorporations (EDCs) that are

often kept separate fromportfolio investment and

activities that take place offreserve.

COMMUNITY TRUST


We haveoutdated

legacystructures

Ourstructures

are competing

Are wediversifying

Wehave too

many needs

We don’t havethe capacity

and expertise

Yes

Andmore…

Or

WellYes

Without developing and implementing afocused strategy, First Nations may findthemselves almost entirely dependent onfederal government funding, policies andpriorities.

www.edip.co

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Our needsshould

set the scopeof projects

Does it buildcapacity

Are wediversifying

Wehave too

many needs

We depend onGov funding

What is ourbudget size?

Can we screenmultiple

opportunities

WHY IS ASOVEREIGN

WEALTHSTRATEGY

IMPORTANT?

Notwell

With…large

Modest

Yes

No

Without developing and implementing afocused strategy, First Nations may findthemselves almost entirely dependent onfederal government funding, policies andpriorities.

EDIP SOVEREIGN WEALTH SOLUTIONSSECTION TWO | THE OPPORTUNITY

THE OPPORTUNITYImprove quality of life and achieve financial independence.

www.edip.co

SLIDE 10


MILESTONEMILESTONE

MILESTONEA NEW APPROACH TO BUILDING WEALTH

EDIP was formed because the integrated suite of servicesrequired by First Nations to build sovereign wealth cannotbe delivered by any one firm or company, no matter howlarge or diversified. We work with a First Nation communityand the service providers of their choice to execute thestrategy developed for them.

We recognize the importance of own source revenues, andthe challenges faced nationally by First Nations.

We believe the opportunity is for First Nations to work witha network of expert advisors from every discipline to design,implement and maintain a best practice sovereign wealthstrategy and structure to mitigate the challenges currentlyfaced by First Nations.

This requires a much broader approach to building wealth.

www.edip.co

SLIDE 11

MILESTONE

MILESTONE

MILESTONE

A NEW APPROACH TO BUILDING WEALTH

EDIP was formed because the integrated suite of servicesrequired by First Nations to build sovereign wealth cannotbe delivered by any one firm or company, no matter howlarge or diversified. We work with a First Nation communityand the service providers of their choice to execute thestrategy developed for them.

We recognize the importance of own source revenues, andthe challenges faced nationally by First Nations.

We believe the opportunity is for First Nations to work witha network of expert advisors from every discipline to design,implement and maintain a best practice sovereign wealthstrategy and structure to mitigate the challenges currentlyfaced by First Nations.

This requires a much broader approach to building wealth.


MILESTONEMILESTONE

MILESTONE

One that givescommunity leaders

and management thetools, resources and

ongoing supportnecessary to focus on

building wealth forfuture generations.

One that aligns thecommunity's

governance anddecision-making

structure to the wealthgeneration process.

One that is muchmore systematic in itsapproach, measuringresults and allocating

assets based on astrategy and results.

www.edip.co

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MILESTONE

MILESTONE

MILESTONE

One that takes intoaccounts all of the

First Nation's assets,including its

commercial andfinancial assets.

One that givescommunity leaders

and management thetools, resources and

ongoing supportnecessary to focus on

building wealth forfuture generations.

One that aligns thecommunity's

governance anddecision-making

structure to the wealthgeneration process.


PHA

SE O

NE DUE DILIGENCE AND DISCOVERY

The due diligence and discovery phase determines the community'scurrent situation, its investment opportunities and what they wouldlike to achieve through their vision and their plan. This stageincludes consultations with leadership, with management, with keycommunity advisors and with the community. A diagnosticapproach is taken to determine areas that need improvement.

IMPLEMENTATIONThe wealth strategy is documented in in a Statement ofPolices and Guidelines that sets out the community's goalsand the strategies to achieve them.

PHA

SE T

HRE

E

EDIP puts together a team to assist the First Nation. This team works with the First Nation to identify its needs and goals and thenworks with them to design and implement the structure and strategy.

www.edip.co

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PHA

SE O

NE DUE DILIGENCE AND DISCOVERY

The due diligence and discovery phase determines the community'scurrent situation, its investment opportunities and what they wouldlike to achieve through their vision and their plan. This stageincludes consultations with leadership, with management, with keycommunity advisors and with the community. A diagnosticapproach is taken to determine areas that need improvement.

PHA

SE T

WO

DESIGN BEST PRACTICE STRATEGY AND STRUCTUREIn addition to working with leadership and the community todevelop a wealth strategy, the First Nations EDIP team will also helpthe First Nation develop a best practice "structure" to house andgovern the sovereign wealth strategy. Once the communityleadership endorses the sovereign wealth strategy, the plan andstructure are put in place.

PHA

SE T

HRE

E

ONGOING SUPPORTThe final phase involves providing ongoing support for thecommunity's sovereign wealth strategy. This phase includesmeeting regularly with management, and with acommunity's advisory team, and providing expertise andtools as needed. PH

ASE

FO

UR


WHO WE AREA multi-disciplinary network of experts, including lawyers, taxexperts, accountants, consultants, financial advisors, andothers, who have their own practices, businesses and firms.

SECTION THREE | WHO WE ARE www.edip.co

SLIDE 14

EDIP SOVEREIGN WEALTH SOLUTIONSSECTION THREE | WHO WE ARE

Howard Morry, President and DirectorA Partner at Pitblado Law LLP and President and Directorof EDIP Sovereign Wealth Solutions Inc. He is nationallyrecognized as a trusted advisor for his particular insightand innovation in domestic and international tax matters,including First Nations taxation.

Gary F. KissackA Partner at Fogler Rubinoff LLP in the Business Law &

Capital Markets and Securities practice groups and regularlyadvises First Nations on the formation of customized

economic development groups, as well as on evaluation,negotiation and implementation of investments.

Gabrielle OllingerGabrielle is a member of Cowessess Nation and is

President of Canyon Heights ManagementInternational Inc. As a CAFM she has worked with

First Nation organizations, communities, federalgovernment, private and non-profit organizations.

Neil PhilcoxA Co-Founder at Grand Basin Capital workingdirectly with a diversity of Aboriginal, corporateand financial clients spanning a wide range ofsectors. He has an accomplished background ininternational finance and business development.

CORE LEADERSHIP

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SLIDE 15

Gabrielle OllingerGabrielle is a member of Cowessess Nation and is

President of Canyon Heights ManagementInternational Inc. As a CAFM she has worked with

First Nation organizations, communities, federalgovernment, private and non-profit organizations.

Walter ManitowabiA member of Wikwemikong and is managingpartner of Three Fires Solutions. He has held

senior positions with the Union of OntarioIndians, Andys Group of Companies and

Wikwemikong Unceded Nation.

Dan OllingerDan is Technology Director of Canyon Heights ManagementInternational Inc. and leads the design and development ofintegrated web based information management systems to

support operations with efficient and secure Cloud applicationsplatforms.

Neil PhilcoxA Co-Founder at Grand Basin Capital workingdirectly with a diversity of Aboriginal, corporateand financial clients spanning a wide range ofsectors. He has an accomplished background ininternational finance and business development.

Sean HoltA Co-Founder and principal at Grand BasinCapital he brings expertise in investmentbanking having worked with Goldman Sachs inNew York and private equity with EmergingMarkets Partnership in Washington DC.

Scott CarletonA Partner at Indigenous Financial Solutions Ltd. He is aChartered Professional Accountant from Northern Manitobawho has over 20 years of experience in corporate finance forprivate, publicly traded and government organizations.


SOVEREIGNWEALTH

STRATEGY

ONGOINGSUPPORT

GROWING A NETWORKOF EXPERT ADVISORS:

We are continuously adding ServiceProviders, Advisors, and ThoughtLeaders who are selected forexpertise, experience and ability towork well with the team.

MULTI-DISCIPLINARYEXPERTISE

www.edip.co

SLIDE 16

First Nations can select anintegrated, values-aligned andaccountable team, supportedby services and tools thatenable your team to work withyou to design, implement andmaintain a best practice wealthgeneration strategy.

Human Resources

STRUCTURE

COMMUNITY GOALSAND OBJECTIVES

GROWING A NETWORKOF EXPERT ADVISORS:

We are continuously adding ServiceProviders, Advisors, and ThoughtLeaders who are selected forexpertise, experience and ability towork well with the team.

MULTI-DISCIPLINARYEXPERTISE


EDIP BACK OFFICE PROJECT MANAGEMENT

www.edip.co

SLIDE 17

The network has a back office to help them manage projects, and access purpose-built tools, templatesand systems. The back office allows the EDIP team to deliver an integrated suite of services that ensuresuniformity, quality control, risk management, timely service delivery and privacy. EDIP's tools are alsoavailable to First Nations to help them manage their EDCs and sovereign wealth strategies

EDIP SOVEREIGN WEALTH SOLUTIONSSECTION FOUR | SUITE OF SERVICES

EDIP SUITE OF SERVICESA suite of services centered around putting in placean integrated sovereign wealth plan.

www.edip.co

SLIDE 18


BUSI

NES

S ST

RUC

TURE

BUSINESS STRUCTURE - At a MACRO LEVEL the business structure would have two components:

o An "UPSTREAM” STRUCTURE, sometimes called a SUPERSTRUCTURE that HOLDS all "downstream" investmentopportunities through a downstream structure, and is focused on maximizing wealth.

o A "DOWNSTREAM" STRUCTURE that HOUSES all your investment opportunities and PLUGS into the superstructure.

The Macro Level

www.edip.co

SLIDE 19

BUSI

NES

S ST

RUC

TURE

BUSINESS STRUCTURE - At a MACRO LEVEL the business structure would have two components:

o An "UPSTREAM” STRUCTURE, sometimes called a SUPERSTRUCTURE that HOLDS all "downstream" investmentopportunities through a downstream structure, and is focused on maximizing wealth.

o A "DOWNSTREAM" STRUCTURE that HOUSES all your investment opportunities and PLUGS into the superstructure.

UPSTREAM

ON AND OFF RESERVE INVESTMENTS

DOWNSTREAM

“Financial Assets” plus“Commercial Assets”

“Plug” into theSuperstructure.

The “superstructure” (sometimes calledthe “upstream”), is governed in a manner

that provides foraccountability, alignment with

community goals, transparency, effectivedecision making, strategy and

leadership, separation of politics andbusiness and between management andthe Board, and timely decision making.


SUPE

RSTR

UCTU

RE

The Superstructure has a number of features. At the centre of it is the EDO that continues with an expanded mandate.

www.edip.co

SLIDE 20

SUPE

RSTR

UCTU

RE

ADVISORY COUNCIL


BOARDDOWNSTREAM

BOARDDOWNSTREAM

BOARDDOWNSTREAM

BOARD

UPSTREAM


SOV

EREI

GN

WEA

LTH

STR

ATE

GY

The Sovereign Wealth Strategy is documented in in a Statement of Polices and Guidelines that sets out the community's goals and thestrategies to achieve them.

www.edip.co

SLIDE 21

SOV

EREI

GN

WEA

LTH

STR

ATE

GY

ADVISORY COUNCIL


BOARDDOWNSTREAM

BOARDDOWNSTREAM

BOARDDOWNSTREAM

BOARD

UPSTREAM


STRU

CTU

RE

In addition to working with leadership and the community to develop a wealth strategy, the EDIP team also helps the First Nationdesign and put in place a best practice "structure" to house and govern the sovereign wealth strategy.

www.edip.co

SLIDE 22

STRU

CTU

RE ADVISORY COUNCIL


BOARDDOWNSTREAM

BOARDDOWNSTREAM

BOARDDOWNSTREAM

BOARD

UPSTREAM


ON

GO

ING

SUP

PORT

Once the sovereign wealth strategy and the structure are in place, EDIP will provide ongoing support for the community's wealthgeneration strategy.

www.edip.co

SLIDE 23

ON

GO

ING

SUP

PORT

ADVISORY COUNCIL


BOARDDOWNSTREAM

BOARDDOWNSTREAM

BOARDDOWNSTREAM

BOARD

UPSTREAM


PRICING:o Clients enter into a formal engagement with EDIP and the service providers. EDIP will typically collect and distribute fees, for

itself and the service providers, in the way that a project manager does.o The fees are flexible and will be based on how much work is required, which service providers will be involved, and how

much they will charge, which of EDIP's tools, systems and people will be required and a community's ability to pay.o The due diligence and discovery phase is billed as a project fee. At the end of that first phase, when more is known of what

will be required in the second and third phases (designing and implementing the strategy and structure), the client is given afixed project fee, along with a payment plan.

o Once the strategy and structure are in place, a proposal is given to the community for "ongoing support". Pricing will likelybe based on a combination of fixed monthly or quarterly fees, project or hourly fees and a percentage based on growth inwealth and returns over target.

Flexible pricing, you choose the method and timing of payment.

www.edip.co

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PRIC

ING

PRICING:o Clients enter into a formal engagement with EDIP and the service providers. EDIP will typically collect and distribute fees, for

itself and the service providers, in the way that a project manager does.o The fees are flexible and will be based on how much work is required, which service providers will be involved, and how

much they will charge, which of EDIP's tools, systems and people will be required and a community's ability to pay.o The due diligence and discovery phase is billed as a project fee. At the end of that first phase, when more is known of what

will be required in the second and third phases (designing and implementing the strategy and structure), the client is given afixed project fee, along with a payment plan.

o Once the strategy and structure are in place, a proposal is given to the community for "ongoing support". Pricing will likelybe based on a combination of fixed monthly or quarterly fees, project or hourly fees and a percentage based on growth inwealth and returns over target.

EDIP SOVEREIGN WEALTH SOLUTIONSSECTION FIVE | EDIP VISION AND VALUES

EDIP VISION AND VALUESEDIP's mission is to give First Nations the sovereign wealthplanning tools, resources and support necessary to achievefinancial independence.

www.edip.co

SLIDE 25

EDIP SOVEREIGN WEALTH SOLUTIONSSECTION FIVE | EDIP VISION AND VALUES www.edip.co

SLIDE 26

MISSION

Our mission is to ensurethat First Nations haveaccess to the sovereignwealth tools, resourcesand advice necessary toachieve financialindependence.

VISION

Our vision is a world inwhich First Nationsachieve financialindependence.

COMMITMENT

Our commitment is toassemble the right teamof advisors to work withyou to design, implementand maintain a bestpractice sovereign wealthstrategy and structurethat supports youreconomic developmentand financial goals.

VALUES

EDIP Sovereign WealthSolutions Inc. and itsadvisors believe that FirstNations control their owndestiny.

STRATEGY

Our strategy is to buildand support a network ofexpert advisors withexpertise in multipledisciplines.


CONTACT USA WEALTH GENERATION ENGINE FORFIRST NATION SOVEREIGN WEALTH

[email protected]

www.edip.coTHANK-YOU FOR ATTENDING

SLIDE 27

CONTACT USA WEALTH GENERATION ENGINE FORFIRST NATION SOVEREIGN WEALTH

[email protected]

control your destiny - afoa canada p... · edip sovereign wealth solutions control your destiny a...

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