Royal Trust is the Court Appointed Trustee and
Custodian of the Hepatitis C Trust Fund.
Information Brief
Prepared for:
The Joint Committee
Of the Hepatitis C Trust Fund
Prepared by:
Nicole Kenward, Manager Client Service
Royal Trust Corporation of Canada
Revised April 30, 2001
Introduction
About Royal Trust Global Securities Services
A unit of Royal Bank of Canada, Royal Trust Global Securities
Services (GSS) is Canada's largest custodian and a recognized
provider of custody and related securities services to corporate
and institutional clients worldwide. GSS delivers settlement
and safekeeping through its highly acclaimed agent network
in more than 80 world markets, and also provides investment
analysis, securities lending and finance, and other specialized
services. GSS has offices in Toronto, Montreal, Halifax,
St. John's, Calgary, Vancouver, London, Tokyo, Singapore,
Sydney and Dubai. For more information, visit Royal Trust
Global Securities Services' web site at www.royalbank.com/gss.
Royal Trust was appointed as the Trustee and Custodian
of the Hepatitis 'C' Trust Fund by the Superior Courts of
B.C., Ontario and Quebec. A front-line service team of administration
and operations managers is responsible for the day-to-day
activities of the Fund. Together with specialized support
from professionals with particular expertise with regulatory
requirements, a wide and unique range of services is delivered
to the Hepatitis 'C' Trust Fund.
Duties and Responsibilities of the Trustee/Custodian
Custody and Safeguarding of Securities
Royal Trust holds in trust any securities, currencies or
other assets the Trust Fund may acquire. Royal Trust invests
and reinvests assets of the Trust Fund strictly in accordance
with the directions of the Joint Committee or the Investment
Manager appointed by the Courts. Royal Trust "safe
custodies" the assets in vaults and reconciles the
securities positions in its books using the services of
the Canadian Depository for Securities daily.
Processing of Investment Transactions
Royal Trust completes all securities transactions - all
acquisitions and all dispositions of assets - as per authorized
instructions received from the Investment Manager.
Collection of Income
Royal Trust collects and accounts for all items of principal
and income. Stock dividends and bond interest are credited
to the account on the day they are payable regardless of
whether Royal Trust actually receives the funds. Royal Trust
tracks stock dividends and splits, bond maturities and redemptions.
For cash balances held in the fund, interest is automatically
credited. The interest is calculated daily and paid to accounts
on the last business day of the month.
Contributions
The Trustee receives all contributions flowing into the
Trust Fund. Each month Royal Trust notifies the Provinces
and the Territories of their respective required proportionate
contribution. Royal Trust credits receipts of those contributions
to the appropriate accounts.
Plan Disbursements
All plan disbursements are processed in a timely manner
in accordance with the terms of our appointment and/or Court
Order. Payments to Service Providers are made pursuant to
applicable Court Order.
Maintenance of Records
The Trustee maintains accurate records with respect to
the assets of the Trust Fund and provides timely reports
to various parties, including:
Monthly Investment Statements: These statements
provide the full financial picture of the Trust Fund including
cash reconciliation investment activity, receipts and disbursements
for the reporting period. These reports also provide a list
of assets held at a certain date with book and market value,
accrued income and also detail the day-to-day activity in
chronological order.
Quarterly Notional Reports: Royal Trust maintains
notional accounts for each of the Provincial and Territorial
Governments. These accounts are maintained on the basis
of the sharing percentage provided by the Federal Government.
The report records the Governments' proportionate contributions,
proportionate interest amount and proportionate disbursements.
It also reflects when payments are due and when they are
actually received.
Monthly Financial Summary: This report summarizes,
at a high level, the Market Value of the Trust Fund, the
investment income earned, payouts to claimants and service
providers and recoveries from the Provinces and Territories
for those payouts since the inception of the Fund.
Summary of Trust Activity
Payments to the Trust
During 2000, the first year of operation of the Hepatitis
'C' Trust Fund, the Trust received contributions totaling
$905,015,000 representing the contribution from the Federal
Government in the amount of $855,292,000 and payments from
Provincial and Territorial Governments totaling $49,723,000.
In addition, the Hepatitis 'C' Trust Fund has earned $97,943,500
(includes investment income, realized and unrealized capital
gains and losses). The closing market value of the fund
at March 31, 2001 was $874,157,780.
Payments from the Trust
Disbursements from the Trust in 2000 totaled $128,800,000
representing $72,332,000 to the Administrator for the claimants,
$53,000,000 in start up expenses and $3,468,000 to service
providers.
The Courts approved an annual budget of $166,870 representing
Royal Trust's Trustee and Custodial fees for year 2000.
The actual charge to the fund for performing the various
activities and delivering the services was $108,937.
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