Investor Presentaiton
common funds called the PT bank account; the money market fund; and the
bond fund. The PT bank account is a business bank account and is used for day
to day receipts and disbursements of all clients. The money market fund and the
bond fund hold investments which are appropriate for clients with longer term
investment horizons.
Under Section 12 of the Public Trustee Act, the PT is permitted to make separate
investments for clients if the money is subject to an express trust or direction for
investment or if it is, for any other reason, in the best interests of the client to do
so. Other investments and securities include separate investment portfolios and
registered plans, which are established or maintained for clients according to
their investment profile. The three common funds are managed by the Treasury
Branch within the Department of Finance of the Government of New Brunswick.
Other investments are managed by private investment management firms.
Price risk, currency risk, interest rate risk and credit risk exposure is mitigated
through the liquidation of investments held as other investments and the transfer
of the proceeds to the PT bank account or in some years the PT bond fund or the
PT money market fund. Other investments are subject to these risks until the
transfer is made. Sale and transfers are made as soon as is prudently possible.
In some cases this may take several years to complete.
Liquidity risk is the risk that a client account is unable to meet its financial
obligations as they come due. OPT minimizes this risk by ensuring that client
accounts hold sufficient cash funds to meet current liabilities and expenses.
4- PT Bank Account
Operated through the Royal Bank of Canada, this trust account is managed by
the PT. The account is used to maintain a sufficient cash balance to meet
clients' short term needs for a period up to 12 months.
Interest earned from the PT bank account is allocated based upon the client's
proportional share of the account's total assets.
5- Money Market Fund
The objective of this investment strategy is to provide ongoing investment income
while maintaining liquidity and preservation of capital. Investments will focus on
the purchase of Government of Canada and Provincial Treasury Bills and
Canadian Federal or Provincial Bonds, all with a maturity date of less than one
year.
Interest earned from the PT money market fund is allocated based upon the
client's proportional share of the account's total assets.View entire presentation