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Fund to save salmon shrinks with economy
$165-million endowment loses more than $35-million, could endanger projects in Canada and the U.S.
MARK HUME
E-mail Mark Hume | Read Bio | Latest Columns
November 8, 2008
VANCOUVER -- A $165-million endowment established by the governments of Canada and the United States to fund key salmon projects on the West Coast has been so badly battered by the economic downturn there may be no grant money available for 2009.
Over the past few months, the overall value of the endowment, which consists of two separate funds managed jointly as a master trust by the Pacific Salmon Commission, has fallen by more than $35-million.
This could shut down more than 100 projects in British Columbia, Washington, Oregon and Alaska that last year got about $10-million in funding.
The full extent of the crisis won't be known until fund managers sit down with PSC officials in the next few weeks for a detailed report.
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But already researchers are being warned to expect a shock.
"Next week I'm meeting with the Department of Fisheries and Oceans and the Pacific Salmon Commission to talk about what would be the most sensible thing to do in 2009, all under this grey cloud of, you know, maybe there won't even be any dollars to do anything," said Karl English, president of LGL Ltd., a leading ecological research company doing work on Fraser River salmon runs.
Mr. English said the PSC endowment is crucial because it provides researchers with baseline grants that are then matched by other funding sources.
"It has a huge ripple effect," he said of the PSC grants. "But if you can't find that seed money the whole thing is dead before you start."
He said the government should step in to make sure crucial salmon projects continue because, if there is a funding gap, projects that have been under way for years "could totally unravel ...[they] will just die on the vine."
In recent letters to proponents, the PSC warns the Southern Boundary Restoration and Enhancement Fund and the Northern Boundary and Transboundary Rivers Restoration and Enhancement Fund have suffered major market blows.
One letter says that the global financial crisis has reduced the overall value of the southern fund by $19-million (U.S.). It adds that "obviously - and regrettably - the magnitude of the recent decline in our investment balance will affect the amount of funding available for projects. ... Like you, we are disappointed by these developments, which clearly are beyond our control."
A similar letter, issued earlier, said the northern fund had declined in value by $10.8-million (U.S.), but officials said it has continued to fall and now likely matches the losses in the southern fund. An up-to-date figure wasn't available yesterday.
The southern and northern funds are separate, but managed as one master trust. It is invested in a diversified portfolio, with 70 per cent of the assets in equities and 30 per cent in bonds. The equity portion blends U.S. equities (29 per cent), non-North American equities (18.5 per cent) and global equities (22.5 per cent). The bond portion is wholly Canadian bonds.
The mix was intended to maximize income over time and minimize the risk of losses, but the market fall has been so extensive even conservatively managed funds have been crippled.
Don Kowal, executive secretary of the PSC, said managers will meet next week for a financial briefing. He said decisions on project funding are made in March and, given the volatility of the market, it's hard to know where things will be by then.
"I mean we haven't been faced with this kind of situation before," Mr. Kowal said.
Some examples of projects funded in 2008 by the PSC include $100,000 to restore sockeye runs to the Upper Adams River, $320,000 to capture and tag salmon to assess stocks in the Fraser, $75,000 to grow 300,000 sockeye fry in Lakelse Lake, and $240,000 as part of an effort to increase the Stikine River sockeye population by 100,000 adult fish.
Over the past four years, the endowment has contributed more than $30-million to several hundred salmon projects on the West Coast.
Jim's Fishing Charters
www.JimsFishing.com
http://ca.youtube.com/user/Sushihunter250
Fund to save salmon shrinks with economy
$165-million endowment loses more than $35-million, could endanger projects in Canada and the U.S.
MARK HUME
E-mail Mark Hume | Read Bio | Latest Columns
November 8, 2008
VANCOUVER -- A $165-million endowment established by the governments of Canada and the United States to fund key salmon projects on the West Coast has been so badly battered by the economic downturn there may be no grant money available for 2009.
Over the past few months, the overall value of the endowment, which consists of two separate funds managed jointly as a master trust by the Pacific Salmon Commission, has fallen by more than $35-million.
This could shut down more than 100 projects in British Columbia, Washington, Oregon and Alaska that last year got about $10-million in funding.
The full extent of the crisis won't be known until fund managers sit down with PSC officials in the next few weeks for a detailed report.
More Stories
Lean green campus machines
But already researchers are being warned to expect a shock.
"Next week I'm meeting with the Department of Fisheries and Oceans and the Pacific Salmon Commission to talk about what would be the most sensible thing to do in 2009, all under this grey cloud of, you know, maybe there won't even be any dollars to do anything," said Karl English, president of LGL Ltd., a leading ecological research company doing work on Fraser River salmon runs.
Mr. English said the PSC endowment is crucial because it provides researchers with baseline grants that are then matched by other funding sources.
"It has a huge ripple effect," he said of the PSC grants. "But if you can't find that seed money the whole thing is dead before you start."
He said the government should step in to make sure crucial salmon projects continue because, if there is a funding gap, projects that have been under way for years "could totally unravel ...[they] will just die on the vine."
In recent letters to proponents, the PSC warns the Southern Boundary Restoration and Enhancement Fund and the Northern Boundary and Transboundary Rivers Restoration and Enhancement Fund have suffered major market blows.
One letter says that the global financial crisis has reduced the overall value of the southern fund by $19-million (U.S.). It adds that "obviously - and regrettably - the magnitude of the recent decline in our investment balance will affect the amount of funding available for projects. ... Like you, we are disappointed by these developments, which clearly are beyond our control."
A similar letter, issued earlier, said the northern fund had declined in value by $10.8-million (U.S.), but officials said it has continued to fall and now likely matches the losses in the southern fund. An up-to-date figure wasn't available yesterday.
The southern and northern funds are separate, but managed as one master trust. It is invested in a diversified portfolio, with 70 per cent of the assets in equities and 30 per cent in bonds. The equity portion blends U.S. equities (29 per cent), non-North American equities (18.5 per cent) and global equities (22.5 per cent). The bond portion is wholly Canadian bonds.
The mix was intended to maximize income over time and minimize the risk of losses, but the market fall has been so extensive even conservatively managed funds have been crippled.
Don Kowal, executive secretary of the PSC, said managers will meet next week for a financial briefing. He said decisions on project funding are made in March and, given the volatility of the market, it's hard to know where things will be by then.
"I mean we haven't been faced with this kind of situation before," Mr. Kowal said.
Some examples of projects funded in 2008 by the PSC include $100,000 to restore sockeye runs to the Upper Adams River, $320,000 to capture and tag salmon to assess stocks in the Fraser, $75,000 to grow 300,000 sockeye fry in Lakelse Lake, and $240,000 as part of an effort to increase the Stikine River sockeye population by 100,000 adult fish.
Over the past four years, the endowment has contributed more than $30-million to several hundred salmon projects on the West Coast.
Jim's Fishing Charters
www.JimsFishing.com
http://ca.youtube.com/user/Sushihunter250
