Schedule C – Hepatitis C Trust Information Brief Prepared by RBC Dexia Investor Services
RBC Dexia Investor Services offers proven expertise in global custody, fund and pension administration and shareholder services to institutions around the world. Established in January 2006, we are a joint venture equally owned by Royal Bank of Canada and Dexia. We rank among the world's top 10 global custodians, with USD 2.2 trillion in client assets under administration.
RBC Dexia Investor Services offers clients a complete range of investor services supported by:
- a worldwide network of offices in 15 countries on four continents
- unparalleled European transfer agency capabilities
- fund administration services in 14 global markets
- strong credit ratings: Aa3 (Moody’s), AA- (S&P)
- more than 100 years of experience in institutional financial services
- products and technology that meet clients’ present and future needs
- top ratings for client service in industry client satisfaction surveys
Our innovative products and services help clients maximize operational efficiency, minimize risk and enhance portfolio returns. And our 4,000 experienced and enthusiastic professionals in 15 markets offer proven expertise to enhance clients’ business performance.
RBC Dexia Investor Services provides clients an extensive range of solutions including: global custody, fund and pension administration, shareholder services, distribution support, reconciliation services, transition management, investment analytics, compliance monitoring and reporting, securities lending and borrowing, treasury services and commission recapture.
RBC Dexia Investor Services Trust (RBC Dexia) was appointed Trustee and Custodian of the Hepatitis ‘C’ Trust Fund by the Superior Courts of B.C., Ontario and Quebec. A service team comprising administration and operations managers is responsible for the day-to-day activities of the Trust Fund. This team is complemented by professionals with regulatory expertise, providing the Hepatitis ‘C’ Trust Fund with a wide range of specialized services.
Duties and Responsibilities of the Trustee/Custodian
Custody and Safeguarding of Securities
RBC Dexia holds in trust the cash and securities of the Trust Fund. The assets of the Trust Fund are invested and reinvested by RBC Dexia strictly in accordance with the directions of the Joint Committee or the investment manager appointed by the Courts. RBC Dexia 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 Limited (CDS).
Processing of Investment Transactions
RBC Dexia completes all securities transactions – all acquisitions and all dispositions of assets – as per authorized instructions received from the investment manager.
Collection of Income
RBC Dexia 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 Dexia actually receives the funds. RBC Dexia 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.
RBC Dexia receives all contributions flowing into the Trust Fund. Each month RBC Dexia notifies the Provinces and the Territories of their respective required proportionate contribution. RBC Dexia credits receipts of those contributions to the appropriate accounts.
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 Dexia 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. Day-to-day activity is reported in chronological order.
- Quarterly Notional Reports: RBC Dexia 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 2006, the seventh year of operation of the Hepatitis ‘C’ Trust Fund, the Trust Fund received contributions totaling $15,251,617 representing payments from Provincial and Territorial Governments.
In addition, the Hepatitis ‘C’ Trust Fund has earned $30,218,809 (includes investment income, realized and unrealized capital gains and losses). The closing market value of the fund at December 31, 2006 was $927,682,411.
Payments from the Trust Fund
Disbursements from the Trust Fund in 2006 totaled $34,478,576 representing $31,088,044 to the Administrator for the claimants and $3,470,532 to service providers for fees and expenses.
For the period of April 1, 2006 to December 31, 2006 the Courts approved a budget of $78,750 for RBC Dexia’s trustee and custodial fees. The actual charge to the Trust Fund for performing the various activities and delivering the services was $70,000.