Transcript Slide 1

Royal Trust Corporation of Canada
Image Area
Ah-Shoo-Gun
2014 Annual General Meeting
2014, October, 16 |
Sangita Bhalla, RVP
Aboriginal Trust Services
Agenda
1. A Trust for Community
2. Overview of Ah-Shoo-Gun Trust
3. Investment Review
4. Trust Compliance
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A TRUST FOR COMMUNITY
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Purposes of a Trust
•
Long term preservation of wealth for future generations
•
Generate Income for spending on Band Projects:
• Housing
• Health
• Education
• Infrastructure
• Land
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A Legacy for the Future
The Ah-Shoo-Gun Trust
will provide for you,
your children
&
all future generations
The Trust is your Legacy
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Primary Duties of the Trustee
• Follow the Terms of the Trust Agreement
• Act Honestly and Prudently
• Safeguard and Protect Trust Property
• Maintain Accurate Accounts
• Act Impartially
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Administrative Duties of the Trustee
• General duty not to delegate
Trustee responsibilities
• Clerical record keeping and
reporting – including quarterly
statements, annual report
• Account to Members and to
Co-Trustees
• Monitor investment performance
• Prepare tax return for Trust
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AH-SHOO-GUN TRUST
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Ah-Shoo-Gun Trust Overview
•
Created in 1999, with $2,000,000. to benefit
present and future generations of the
Mishkosiimiiniizibing First Nation
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Duration of Trust
99 years
Wind up Date: 31st December, 2097
Assets will be distributed to the
First Nation
OR
Settled into another Trust
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The Trustees
2 Individual Trustees & 1 Corporate Trustee
As of October 2014
Individual Trustees
Terms of Service
Gary Tuesday
Elected for 2 year term
Patricia Green
Appointed (indefinitely)
Corporate Trustee
Royal Trust Corporation of Canada
Sangita Bhalla
Regional Vice President
Aboriginal Services Group
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Income Distributions from Trust
• Applications can be made by individuals or by Chief and Council
• Applications must be for “permitted distributions” set out in Clause 3.02
• Chief and Council review applications, refuse or approve them
– If approved: application is sent to requesting trustees to proceed,
within 60 days
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Income Distributions Procedure
Application is made
to Chief and Council
Approved
Chief and Council
send a BCR to
the Trustees
Royal Trust makes
sure enough
revenue is
available
Refused
First Nation
Trustees check for
“permitted uses”
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Permitted Use of Funds
 Purchase of Land
 Resource rehabilitation – support traditional and commercial resource
pursuits
 Cultural, social and community development
 Business and employment
 Infrastructure and housing
 Costs relating to implementation of the Trust
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Accumulated Income
Any income that is not paid out by
way of applications can be either:
Recapitalised back in the Trust
OR
Council can request the income (before
January 30th following the year end)
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INVESTMENT REVIEW
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2013 Highlights
$65,157.33 was received as Revenue
$37,465.83 paid out as Total Revenue Disbursed
$66,513.66 remaining balance of a Promissory Note from 2012
$94,205.16 was the total income generated for 2013
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Investment Strategy and Objectives
•
•
•
•
Investments are not restricted by the Trustee Act (Ontario)
Investments are restricted to the terms in the Trust Agreement
Trust capital cannot be distributed, only revenue
Any changes to the investment portfolio require the approval of the Elected
Trustee
• Increasing the ranges for equities or common stocks from an asset class
distribution of 0%-20% to 25%-40%
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Investment Performance
OBJECTIVE: To achieve a reasonable level of income, with regard to current
market conditions… to achieve long-term preservation of the fund.
• Investments are restricted to the terms in the Trust Agreement
• Trust capital cannot be distributed, only revenue
• The balance of any income earned per annum and not distributed by January
30 is invested back into capital
• Preservation of capital is necessary to mitigate inflationary changes
• A substantial portion of funds must be invested in equities
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Asset Allocation Guidelines
Asset Class
Min (%)
Neutral (%)
Max (%)
Actual*
Cash
0
5
20
7.65 %
Canadian Bonds
45
55
80
51.06 %
50
60
100
58.71 %
Canadian Stocks
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18
28
18.39 %
U.S Stocks
2
12
22
12.78 %
International Stocks
0
10
20
10.12 %
20
40
50
41.29 %
Total Cash & Fixed
Income
Equities
Total Equities
*As of August 15, 2014
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Investment Summary
Starting Value
Withdrawals
Trust Growth
Ending Value
2009
$1,933,715
-
$146,344
$2,080,059
2010
$2,080,059
($11,510)
$112,643
$2,181,192
2011
$2,181,192
($9,190)
$13,285
$2,185,287
2012
$2,185,287
($102,150)
$90,177
$2,173,314
2013
$2,173,314
($10,158)
$162,958
$2,326,114
2014
YTD
$2,326,114
($34,511)
$30,919
$2,322,522
Total
$1,933,715
($167,519)
$556,326
$2,322,522
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Investment Returns
Year to
date*
2013
2012
2011
2010
2009
6.8%
8.6%
5.3%
2.2%
6.4%
10.0%
1 Year
2 Year
3 Year
4 Year
5 Year
Since Jan
2004
7.9%
6.9%
6.0%
5.6%
5.6%
6.6%
 Excludes Securex Partnership which was sold in August
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Economic Summary
• Canadian equities has been the strongest asset class in the trust for
2014. It was led by the energy sector.
• Over the last 4 years the U.S equities have been the strongest
performer. Some of this is attributed to the U.S. markets being under
valued and trying to catch up but recently it has been due to the
economic and profits backdrop that have been conducive to continuing
gains in equity prices.
• Bonds had better than expected returns in 2014 as bond yields dropped
earlier this year and prices rose.
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Economic Outlook
• The driver of growth has shifted from the emerging world (e.g. China) to
the U.S. Recovering real estate and capital markets and firming
momentum in job creation have restored confidence, bolstering
consumption. Led by the U.S., a self sustaining business cycle has
gained traction.
• Stock valuations are not yet excessive, the global economy and
corporate profits remain supportive and relative valuations (the
expected returns for the risk taken) continue to favour stocks over
bonds.
• Bonds returns are expected to be modest (below 4%) for a few years.
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Current Holdings as at September 30, 2014
Dollars
% Weight
$109,604
4.7%
$1,184,360
51.0%
Canadian Companies
$458,882
19.8%
U.S Companies
$335,040
14.4%
International Companies
$234,636
10.1%
Cash
Canadian Bonds
Total
$2,322,522
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Top Bond Holdings
Issuer
Coupon
Maturity
Province of Alberta
1.70%
Dec 15, 2017
Province of Ontario
4.20%
Mar 8, 2018
Province of New Brunswick
3.35%
Dec 3, 2021
Province of Ontario
4.40%
Mar 8, 2016
National Bank of Canada
4.92%
Dec 22, 2019
Bank of Montreal
2.96%
Aug 2, 2016
Government of Canada
3.75%
Jun 1,2019
Government of Canada
4.00%
Jun 1, 2041
Government of Canada
5.00%
Jun 1, 2037
Government of Canada
1.00%
Aug 1, 2016
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Top Canadian Company Holdings
Issuer
Industry
Canadian Imperial Bank of Commerce
Bank
National Bank of Canada
Bank
Toronto Dominion Bank
Bank
Bonterra Energy Corp
Oil & Gas
Bank of Montreal
Bank
Royal Bank
Bank
Bank of Nova Scotia
Bank
BCE Inc.
Telecommunications
TransCanada Corp
Oil & Gas
Laurentian Bank
Bank
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Top U.S. Company Holdings
Issuer
Industry
Apple Inc.
Technology
Exxon Mobil Corp
Oil and Gas
Microsoft Corp
Technology
Johnson & Johnson
Consumer goods
General Electric Company
Technology
Berkshire Hathaway Inc.
Financial
Wells Fargo & Company
Bank
Chevron Corp.
Oil and Gas
Procter & Gamble
Consumer goods
JP Morgan Chase & Co.
Bank
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Top International Company Holdings
Issuer
Industry
Nestle
Consumer goods
Novartis A.G.
Healthcare
Roche Holdings
Healthcare
HSBC Holdings
Bank
Toyota Motor Corp.
Automotive
Royal Dutch Shell
Oil & Gas
BP Plc.
Oil & Gas
Total S.A.
Oil & Gas
Sanofi S.A.
Healthcare
Banco Santander
Bank
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Trust Compliance
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Compliance
•
All investments are compliant with the
terms of the Trust Agreement
•
Withdrawals and distributions must be
compliant with the terms of the Trust
Agreement
•
Royal Trust works with Council to
ensure that all terms of the Trust
Agreement are met or are addressed
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QUESTIONS?
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Trust Contact
Sangita Bhalla
Regional Vice President – Winnipeg
Aboriginal Trust Services
Phone: 204-285-3053
Toll free: 1-855-833-6510
E-mail:[email protected]
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The Aboriginal Trust Services Team
Winnipeg, Manitoba
Sangita Bhalla, Regional Vice President
Gary Goodbrandson, Regional Vice President
Calgary, Alberta
Jemison Jackson, Vice President
Julie Tannahill, Regional Vice President
George McDonald, Investment Counsellor
Rick Yu, Investment Associate
Victoria, British Columbia
Gordon Larin, Regional Vice President
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DISCLOSURES
This presentation, together with all information and material distributed or discussed as part of the presentation, is intended to provide general
information only. It is not intended, nor should it be construed, as legal, tax , financial, investment, accounting or other advice, and should not be
relied upon in that regard. While every effort has been made to ensure the accuracy of the information provided, no guarantees, warranties or
representations of any kind are made in this regard. No one should act upon the examples/information presented without a thorough examination
of the legal/tax situation with their own professional advisors, based on the latest available information after the facts of their own specific case are
considered.
RBC Estate & Trust Services and Royal Trust refers to Royal Trust Corporation of Canada and The Royal Trust Company. Royal Trust Corporation
of Canada, The Royal Trust Company and Royal Bank of Canada are separate corporate entities which are affiliated. Royal Trust Corporation of
Canada and The Royal Trust Company are member companies of RBC Wealth Management, a business segment of Royal Bank of Canada. ®
Registered trademarks of Royal Bank of Canada. RBC Wealth Management is a registered trademark of Royal Bank of Canada. © Royal Bank of
Canada 2014. All rights reserved.
®/TM Trademark(s) of Royal Bank of Canada. Used under licence.
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