2005 Annual Report

$firstSched && $thisSched <= $lastSched) { print 'Previous | '; } ?> Table of Contents = $firstSched && $thisSched < $lastSched){ print ' | Next'; } ?>

Schedule D - Hepatitis C Trust Fund Information Brief Prepared by Royal Trust

Introduction

About RBC Global Services

RBC Global Services offers specialized transaction processing services to business, commercial, corporate and institutional clients in domestic and select international markets. Key businesses include: global custody, investment administration, correspondent banking, cash management, payments and trade finance. With C$1.6 trillion in client assets under administration, it is a leading provider of securities services worldwide and Canada’s largest custodian. It is also a leading provider of treasury management services. RBC Global Services facilitates a high volume of domestic and international payment services for clients around the world, and is the largest processor of CAD payments in Canada. It has specialists in Sydney, London, Dubai, Singapore, Tokyo, New York and across Canada. For more information, visit our Web site at www.rbcglobalservices.com/iis.

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 the regulatory requirements, a wide and unique range or 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 the 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 Services 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 National 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 2004, the fifth year of operation of the Hepatitis ‘C’ Trust Fund, the Trust Fund received contributions totaling $17,462,280 representing payments from Provincial and Territorial Governments.

In addition, the Hepatitis ‘C’ Trust Fund has earned $76,696,069 (includes investment income, realized and unrealized capital gains and losses). The closing market value of the fund at March 31, 2005 was $888,314,650.

Payments from the Trust Fund

Disbursements from the Trust Fund in 2004 totaled $71,284,872 representing $65,300,633 to the administrator for the claimants and $5,984,239 to service providers for fees and expenses.

The Courts approved the annual budget of $130,000 for RBC Global Services’ Trustee and Custodial fees for the year 2004. The actual charge to the Trust Fund for performing various activities and delivering the services was $95,800.

RBC Global Services is the brand name under which the legal entities Royal Trust Corporation of Canada, The Royal Trust Company and Royal Bank of Canada operate their global custody and investment administration business. These materials are provided by The Royal Trust Company for general information purposes only.