KPFST Trustees Recommend "No" Vote to Trust Liquidation
The Trustees of the Kootznoowoo Permanent Fund Settlement Trust are recommending that unit holders vote “No” on the proposed liquidation of the Trust, emphasizing that the Trust has fulfilled — and continues to fulfill — the vision of its original incorporators.
Since its establishment, the Trust has provided Kootznoowoo Inc. shareholders with a dependable and growing source of dividends designed to benefit not only current unit holders, but future generations as well.
A Strong Record of Long-Term Performance
Over the Trust’s 32-year history, from 1994 through 2025, the fund has:
- Generated $25.8 million in investment earnings after taxes and Trust expenses
- Distributed $17.03 million directly to unit holders
- Maintained a year-end 2025 investment balance of $17.9 million
The Trust began with an original investment of approximately $9.1 million, meaning unit holders have already received nearly twice that amount in distributions while the principal investment base has continued to grow.
This long-term success demonstrates that the Trust has operated exactly as intended — providing stable, reliable financial benefits year after year.
Designed to Benefit Future Generations
The value of the Trust extends far beyond current distributions. Because Trust units can be passed down to children, grandchildren, and other descendants, future generations of Kootznoowoo Inc. families are expected to continue receiving benefits indefinitely.
The Trust estimates that this perpetual structure could provide the equivalent of $15–25 million in inflation-protected distributions for every future generation of Kootznoowoo Trust unit holders.
“This is what the Trust was intended to accomplish,” the Trustees stated in their letter to Shareholders, “and even more importantly, the Trust aims to provide this amount of economic value to future generations of Kootznoowoo, Inc. descendants.”
Unique Tax Advantages
The Kootznoowoo Permanent Fund Settlement Trust is organized as an Alaska Native Corporation Settlement Trust, a structure specifically designed to provide favorable tax treatment.
This structure allows the Trust to benefit from significantly lower tax rates on investment earnings compared to a traditional trust. As a result, the Trust has been able to provide tax-free dividends to unit holders. Many other Alaska Native Corporations across the state have established similar settlement trusts in recent years.
Stable Governance and Investment Discipline
The governance structure and investment policies outlined in the original Trust Agreement have proven effective and continue to provide a disciplined, low-risk framework for managing Trust assets.
The current structure offers greater long-term security and sustainability than liquidation alternatives.
Benefits of Maintaining the Trust
- Reliable and growing annual distributions
- Preservation of wealth for future generations
- Inflation-protected long-term value
- Tax-free dividends for unit holders
- Lower-risk investment management structure
- Continued stewardship under the original Trust framework
The Trustees encourage all unit holders to carefully consider the long-term implications of liquidation and to vote “No” in order to preserve the Trust for current and future generations of Kootznoowoo families.
Click to links below to learn more about the KPFST Trust Vote: