Sharholder Settlement Trust

Shareholder Settlement Trust

Shareholders of Huna Totem established the Shareholders Settlement Trust at a special meeting of shareholders September 23, 1994. Shareholders of Huna Totem became unit holders of the Trust (the number of Trust units equals the number of Huna Totem corporate shares).

The purpose of the trust was to set aside funds to fuel future cash distributions to shareholders. The trust continues to protect and enhance investment assets of the Corporation, promoting the health, education and welfare of current and future Huna Totem Corporation shareholders, preserving the heritage and culture of Alaska Natives.

In 2019, the Shareholders Settlement Trust had its 10-year review. The Shareholders Settlement Trust Board of Trustees conducted community information meetings and discussed the benefits and challenges of the Trust. Recommendations and distribution options were reviewed in detail. In addition to a partial liquidation, the Board recommended a change to a percent of market value formula, referred to as POMV, which takes 2% of the market value over a 5-year average and pays it out to unitholders. A super majority of unitholders voted YES in support of the Board’s recommendations and the result yielded a change to the annual distribution calculation and partial liquidation of the Trust.

As of March 2020, the current annual distribution calculation is based on a Percent of Market Value (POMV) formula that takes two percent (2%) of the five (5)-year rolling average of the Trust’s market value to distribute annually to unitholders in three equalized payments. Distributions will occur on/before March 15, August 15, and November 15 following the annual financial audit.

The Settlement Trust policy allows for investments among five classes: 1) U.S. Equities (stock); 2) non U.S. Equities (foreign stock); 3) U.S. fixed income (bonds); 4) alternative (e.g. real estate, private equity, hedge funds, tactical allocations); and 5) Cash equivalents (U.S. Treasuries, money market funds.)  The Trust fund is managed by 14 investment managers, recommended by our investment advisor and approved by our Board of Trustees.

Advisor: UBS Financial Services

Elder's Benefit Trust

Shareholders of Huna Totem voted to create the Elders' Benefit Trust at the corporation’s 2003 annual meeting. The Trust pays a one-time $1,500 distribution to original shareholders when they reach the age of 65.

The intent of this special payment is to recognize and reward the efforts of these original shareholders, many of whom worked for the benefit of their communities, the passage of ANCSA, and the establishment of Native corporations. Payment is made when they reach the age of 65 in recognition of the fact that this can be a time when many shareholders experience increased medical needs and other services in conjunction with reduced incomes.

Advisor: UBS Financial Services