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Image Area Ah-Shoo-Gun 2014 Annual General Meeting 2014, October, 16 | Sangita Bhalla, RVP Aboriginal Trust Services Royal Trust Corporation of Canada.

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Presentation on theme: "Image Area Ah-Shoo-Gun 2014 Annual General Meeting 2014, October, 16 | Sangita Bhalla, RVP Aboriginal Trust Services Royal Trust Corporation of Canada."— Presentation transcript:

1 Image Area Ah-Shoo-Gun 2014 Annual General Meeting 2014, October, 16 | Sangita Bhalla, RVP Aboriginal Trust Services Royal Trust Corporation of Canada

2 2 2 Agenda 1.A Trust for Community 2.Overview of Ah-Shoo-Gun Trust 3.Investment Review 4.Trust Compliance

3 3 A TRUST FOR COMMUNITY 3

4 4 Purposes of a Trust Long term preservation of wealth for future generations Generate Income for spending on Band Projects: 4 Housing Health Education Infrastructure Land

5 5 A Legacy for the Future The Ah-Shoo-Gun Trust will provide for you, your children & all future generations The Trust is your Legacy 5

6 6 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 6

7 7 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 7

8 8 8 AH-SHOO-GUN TRUST

9 9 9 Ah-Shoo-Gun Trust Overview Created in 1999, with $2,000,000. to benefit present and future generations of the Mishkosiimiiniizibing First Nation

10 10 Duration of Trust 99 years Wind up Date: 31 st December, 2097 Assets will be distributed to the First Nation OR Settled into another Trust 10

11 11 2 Individual Trustees & 1 Corporate Trustee As of October 2014 Corporate Trustee Royal Trust Corporation of Canada Sangita Bhalla Regional Vice President Aboriginal Services Group The Trustees 11 Terms of Service Elected for 2 year term Appointed (indefinitely) Individual Trustees Gary Tuesday Patricia Green

12 12 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

13 13 Income Distributions Procedure

14 14 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

15 15 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 30 th following the year end )

16 16 INVESTMENT REVIEW

17 Highlights $65, was received as Revenue $37, paid out as Total Revenue Disbursed $66, remaining balance of a Promissory Note from 2012 $94, was the total income generated for

18 18 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% 18

19 19 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 19

20 20 Asset Allocation Guidelines Asset ClassMin (%)Neutral (%)Max (%)Actual* Cash % Canadian Bonds % Total Cash & Fixed Income % Equities Canadian Stocks % U.S Stocks % International Stocks % Total Equities % 20 *As of August 15, 2014

21 21 Starting ValueWithdrawalsTrust GrowthEnding Value 2009$1,933,715-$146,344$2,080, $2,080,059($11,510)$112,643$2,181, $2,181,192($9,190)$13,285$2,185, $2,185,287($102,150)$90,177$2,173, $2,173,314($10,158)$162,958$2,326, YTD $2,326,114($34,511)$30,919$2,322,522 Total$1,933,715($167,519)$556,326$2,322,522 Investment Summary

22 22 Investment Returns Year to date* % 8.6%5.3%2.2%6.4%10.0% 1 Year2 Year3 Year4 Year 5 Year Since Jan %6.9%6.0%5.6% 6.6%  Excludes Securex Partnership which was sold in August

23 23 Economic Summary Canadian equities has been the strongest asset class in the trust for 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.

24 24 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.

25 25 Current Holdings as at September 30, 2014 Dollars% Weight Cash$109,6044.7% Canadian Bonds$1,184, % Canadian Companies$458, % U.S Companies$335, % International Companies$234, % Total$2,322,522

26 26 Top Bond Holdings IssuerCouponMaturity Province of Alberta1.70%Dec 15, 2017 Province of Ontario4.20%Mar 8, 2018 Province of New Brunswick3.35%Dec 3, 2021 Province of Ontario4.40%Mar 8, 2016 National Bank of Canada4.92%Dec 22, 2019 Bank of Montreal2.96%Aug 2, 2016 Government of Canada3.75%Jun 1,2019 Government of Canada4.00%Jun 1, 2041 Government of Canada5.00%Jun 1, 2037 Government of Canada1.00%Aug 1, 2016

27 27 Top Canadian Company Holdings IssuerIndustry Canadian Imperial Bank of CommerceBank National Bank of CanadaBank Toronto Dominion BankBank Bonterra Energy CorpOil & Gas Bank of MontrealBank Royal BankBank Bank of Nova ScotiaBank BCE Inc.Telecommunications TransCanada CorpOil & Gas Laurentian BankBank

28 28 Top U.S. Company Holdings IssuerIndustry Apple Inc.Technology Exxon Mobil CorpOil and Gas Microsoft CorpTechnology Johnson & JohnsonConsumer goods General Electric CompanyTechnology Berkshire Hathaway Inc.Financial Wells Fargo & CompanyBank Chevron Corp.Oil and Gas Procter & GambleConsumer goods JP Morgan Chase & Co.Bank

29 29 Top International Company Holdings IssuerIndustry NestleConsumer goods Novartis A.G.Healthcare Roche HoldingsHealthcare HSBC HoldingsBank Toyota Motor Corp.Automotive Royal Dutch ShellOil & Gas BP Plc.Oil & Gas Total S.A.Oil & Gas Sanofi S.A.Healthcare Banco SantanderBank

30 30 Trust Compliance 30

31 31 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 31

32 32 QUESTIONS?

33 33 Sangita Bhalla Regional Vice President – Winnipeg Aboriginal Trust Services Phone: Toll free: Trust Contact

34 34 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

35 35 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 All rights reserved. ®/TM Trademark(s) of Royal Bank of Canada. Used under licence.


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