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
RBC Global Services
April 26, 2002
Introduction
About RBC Global Services and The Royal Trust Company
The Royal Trust Company, a unit of RBC Global Services,
is a part of the RBC Financial Group. RBC Global Services
is a world leader in providing specialized investment administration
solutions for institutional clients. With more than $1.4
trillion in assets under administration, and over 100 years
experience serving our clients, we are Canada's largest
provider of these services and the 11th largest in the world.
Our service offering consists of global custody, securities
lending and finance, treasury, portfolio analytics, unitholder
recordkeeping, investment administration and accounting,
with full outsourcing capabilities. RBC Global Services'
success is highlighted by client satisfaction surveys, in
which we are consistently ranked among the best in the world.
RBC Global Services has offices in Toronto, Montreal, Halifax,
St. John's, Calgary, Vancouver, London, Tokyo, Singapore,
Sydney, Melbourne and Dubai. For more information, visit
our web site at www.royalbank.com/gss.
The Royal Trust Company (RBC Global Services) was appointed
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 Trust 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
RBC Global Services holds in trust the cash and securities
of the Trust Fund. The assets of the Trust Fund are invested
and reinvested by RBC Global Services strictly in accordance
with the directions of the Joint Committee or the Investment
Manager appointed by the Courts. RBC Global Services ensures
the safe custody of the assets and reconciles the securities
positions in its books daily using the services of the Canadian
Depository for Securities.
Processing of Investment Transactions
RBC Global Services completes all securities transactions
- all acquisitions and all dispositions of assets - as per
authorized instructions received from the Investment Manager.
Collection of Income
RBC Global Services 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 RBC Global Services actually receives
the funds. RBC Global Services 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
RBC Global Services receives all contributions flowing
into the Trust Fund. Each month RBC Global Services notifies
the Provinces and the Territories of their respective required
proportionate contribution. RBC Global Services 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
RBC Global Services 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: RBC Global Services
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 Fund
During 2001, the second year of operation of the Hepatitis
'C' Trust Fund, the Trust Fund received contributions totaling
$41,049,659 representing payments from Provincial and Territorial
Governments.
In addition, the Hepatitis 'C' Trust Fund has earned $28,784,162
(includes investment income, realized and unrealized capital
gains and losses). The closing market value of the fund
at March 31, 2002 was $788,027,774.
Payments from the Trust Fund
Disbursements from the Trust Fund in 2001 totaled $154,913,044
representing $138,095,539 to the Administrator for the claimants
and $16,817,505 to service providers for fees and expenses.
The Courts approved an annual budget of $166,870 for RBC
Global Services' Trustee and Custodial fees for the year
2001. The actual charge to the Trust Fund for performing
the various activities and delivering the services was $103,824,
$63,046 under budget.
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