A TRUST is a way of holding property for another person or group of people. Property held in a trust is often defined in a written agreement. The property held by the Thunderbird Trust is the money held for the beneficiaries of the trust, and the beneficiaries are the members of the Chippewas of the Thames First Nation (COTTFN). One of the purposes of establishing a trust is that it allows trustees to manage the property of the trust so that it benefits the beneficiaries defined by the trust.

The beneficiaries of the Thunderbird Trust are specified in section 2 of the Trust Agreement. The beneficiaries are specified as registered members of COTTFN who were born at the time that the Trust Agreement was agreed to.

The purpose of the Thunderbird Trust is found in section 4 of the Trust Agreement. It provides that the main purpose of the trust is the promotion of the social, economic and cultural well-being of the COTTFN.

On March 27, 2015, several amendments were made to the Trust, including a name change. Formally, the Clench Fraud Trust, a community vote approved of the “Thunderbird Trust”.

There were other amendments authorized in the 2015 vote such as, “The Trustees agree to hold the Trust Property in trust for the Beneficiaries…”, and clarifying that the settlor of the Trust is Chippewas of the Thames First Nation. However, the new amendments went on to clarify that the beneficiaries held the legal right, title and interest in all the Trust property. 

Today the Thunderbird Trust continues to operate under the rules of the Trust Agreement, guided by community processes and professional advisors. As was with our ancestors, we continue to consider our past, our present and seven generations ahead.

Because the original claim avoided the question of land rights and land ownership, Chippewas of the Thames First Nation (COTTFN) agreed to the financial terms of the land claim settlement. Establishing a Trust on behalf of COTTFN members was agreed to in a community vote that required the majority of the voting population to agree. The trust is administered by appointed community and community council members.

Trustees are members of the community

There are seven trustees that help authorize expenditures and investments. When the trust was first executed in 2004, one of the criteria was that the trust would have seven trustees. The trustees were to be made up of five elected eligible, adult community members and two members appointed by COTTFN Chief and  Council with the majority to be living on reserve.

The role of the Trustees includes maintaining legal control and ownership of the trust property. The trustees of the Thunderbird Trust are obligated by law to act only in the best interests of the beneficiaries of the trust. Community meetings are held annually and all trustee meetings are open to the community. The Trust Agreement defines what the trustees are allowed and not allowed to do with the property of the Trust. The trustees are guided by the Trust Agreement, in their administration, investments and distribution of funding.

The Trustees are legally obligation to act with the utmost good faith, and in the best interests of the beneficiaries of the trust. The standard of care, skill, judgment and diligence required of a Trustee is that of a person of ordinary prudence in managing their own investments.

Authority of the Trustees is set out in section 10 of the Trust Agreement, including the authority to pay authorized expenses; to retain the services of advisors, professionals or others to assist the Trustees in the performance of their duties; to pay reasonable remuneration to the Board of Trustees for the performance of their duties; pay out the Trust Property for the benefit of any one or more of the beneficiaries.

The Trust Agreement has specific purposes in how the Trust benefits COTTFN. The health and wellbeing of the community is considered under section 8.8 of the Trust Agreement, also known as “Benevolent Purposes”. Under Benevolent Purposes the Trustees also have the authority to use the Trust in support of the education of Chippewas of the Thames members. Of course there is much more to benevolent purposes, such as the physical and mental health of COTTFN members.

Other Benevolent Purposes

• To assist in maintenance and development of recreational and cultural facilities
• To promote the health of members, which includes prevention (or health promotion)
• Fund programs that promote culture, language, history, music, and other arts
• To promote the health and wellbeing of members through sports, sports activities, competitions, training and travel

We are a nation of people who have grown with their environment. As such, the Trust Agreement itemizes that the Trustees may, at their discretion, authorize to use the trust to support economic development with the creation and operation of COTTFN members’ owned and operated businesses.

The Trustees have the authority to use the trust property to assist and invest in housing for members. This includes the opportunity to purchase and build homes, renovate and make improvements to assist with elderly and disabled. In addition, the trustees may contribute to housing programs.

Section 6.10 of the Trust Agreement sets the amount and the limitations for per capita distribution payments. Unfortunately, members who were born or registered after the day the compensation was paid into the trust account November 26, 2004, would not be eligible for the Per Capita Distribution payment.

Per Capita Distribution Limitations

• A one time cash payment to each living member of Chippewas of the Thames at the time of the settlement.
• It you were born & registered before the settlement date of November 26, 2004, then you are entitled to your settlement disbursement.
• The one time payment to each member (settlement disbursement), has conditions and age restrictions.
• If you are eligible, you also have to be at least 18 years old and completed high school. If you don’t finish high school you have to wait until you are 21.

We hold annual community meetings to review our audit and take recommendations. We also host community meetings when amendments are proposed, or other things that may have an impact on the Trust.

As part of our commitment to the community, we contribute to housing, economic development, benevolent projects and emergency funding.

Understanding The Trust

The Thunderbird Trust has an amendment process to reflect the wants and needs of the community. Trustees are voted into their positions every two years.

Community Meetings

We hold annual meetings to provide updates and receive input. Our meetings are announced on our website, newsletters and our social media pages.

Approving Amendments

Making a legal amendment to a trust document is a legal process. We follow the guidelines of the Trust Agreement while implementing amendments.

Efforts to improve the Trust Agreement are community efforts. We exercise transparency by making updated information available to all members of Chippewas of the Thames First Nation.

Theoretically, yes the Trust does have a termination date. However, the termination date is set for twenty years after the last surviving member of Chippewas of the Thames passes away.

The Thunderbird Trust Agreement governs the trust, which was ratified by the nation’s members at a referendum. The province of Ontario have jurisdiction over statute laws, which governs the trust as well. Provincial income tax laws also apply.

The Investment Policy Statement provides the investment managers the guidelines and restrictions on how the money must be spent.

The Investment Policy Statement is a document approved by the trustees that outlines to the investment manager how the money is to be invested.

The current elected trustees must ensure the trust laws are followed. The Trustees follow the governing policies that are in the trust agreement.

Any investments in stocks and bonds require taking risks.  The Investment Policy Statement gives the ranges in which the investment manager can trade on the stock market in Canadian, U.S., and international markets.  If they go outside these parameters The Clench Fraud Trustees can take action against Ridgewood Capital Asset Management for breaching the Investment Policy Statement.

Rodgers Consulting provides advice on trust matters and serves as the watchdog on the work of the investment managers.

Investments of capital cannot be used to loan money to the First Nation. Income generated can be dispersed as a loan to the First Nation and charged an interest rate for borrowing. Promissory notes given to the First Nation are not considered loans and normally would not be charged an interest rate.