ANNUAL REPORT 2012 - RBA Groupe financier
Transcript of ANNUAL REPORT 2012 - RBA Groupe financier
ANNUAL REPORT
2012
ADAPTING TO NEW REALITIES TO ENSURE THE SUSTAINABILITY OF YOUR PLANThis annual report describes the new realities facing us and action taken “to ensure the sustainability of your Plan,” the primary topic of our 2010-2014 strategic planning.
These new realities are having an impact on us. We must continue to comply with the requirements of regulatory authorities governing our Plan and follow market changes.
It is a great pleasure to present this informative document to you.
RBA | AnnuAl RepoRt 20121
lorem ipsum
Our roots: committee members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Salient facts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Message from the president and the general manager . . . . . . . . . . . . . . . . . . . . . . . 6
Actuarial valuation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Returns on investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
Independent auditor’s report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
Notes to financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18
Native benefits plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30
Main external advisers and managers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31
Portfolio managers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31
Employer members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32
TABLE OF cOnTEnTS
RBA | AnnuAl RepoRt 20122
NATIVE BENEFITS PLAN (NBP)
The Native Benefits Plan (NBP) is a private defined benefits plan registered with the Office of the Superintendant of Financial Institutions (OSFI 55865) and the Canada Revenue Agency (0412221). It meets the requirements of the federal Pension Benefits Standards Act and the Income Tax Act.
The Retirement Committee of the NBP serves as the Board of Directors and also acts as the administrator and trustee of the pension fund. The Retirement Committee is made up of eight members, seven of which are elected by and from among employer members, employees and retirees.
The Plan organizes a general assembly each year during which the year’s objectives and their level of achievement are presented, in addition to financial statements, the annual report and all decisions ratified by the Retirement Committee during the fiscal year. Each member also receives a yearly, personalized statement.
At December 31, 2012, the NBP has 4,669 members who benefit from the security of a pension fund established 34 years ago and the performance of the most important Aboriginal pension funds in Canada.
rbagroupefinancier.com
NATIVE BENEFITS PLAN (NBP)
MISSION
The Native Benefits Plan works exclusively with First Nations employers and their employees to offer them the possibility of participating in equitable pension plans adapted to their needs through an organization owned and operated by First Nations.
THE NBP REPRESENTS THE MOST IMPORTANT ABORIGINAL DEFINED BENEFITS PENSION FUND IN CANADA
RBA | AnnuAl RepoRt 20123
lorem ipsum Our rOOTS: COmmITTEE mEmBErS
Our rOOTS: COmmITTEE mEmBErS
Committee members are elected by and from among employer and employee representatives and retirees. They participate in the achievement of goals established under the aegis of the 2010-2014 strategic planning for the NBP. “Ensuring the permanence of your Plan” was a priority issue in 2012.
MEMBERS OF THE RETIREMEnT cOMMITTEE
Norm Odjick President
Ricky Fontaine, Adm.A. Vice-President
Danielle Gill Director (end of term August 2012)
Sophie Picard Director
Jinny Thibodeau Director
Angèle Petiquay Director
Michel Toupin Independent Member
Johanne Castonguay Director (since August 2012)
Lison Picard Director (resignation November 2012)
MEMBERS OF THE InVESTMEnT cOMMITTEE
Ricky Fontaine, Adm.A. President and NBP Representative
Roger Chiniara, CFA Expert Consultant
Claude Dalphond Expert Consultant
Jean-Marie Gagnon, Ph.D Expert Consultant
Danielle Gill FNPSPP Representative (end of term August 2012)
Norm Odjick NBP Representative
Michel Toupin External Member
Johanne Castonguay FNPSPP Representative (since August 2012)
Sylvain Picard, CPA, CA, CGA, ASC, Adm.A., Investment Committee Secretary (non-voting member)
Pierre Parent, CFA, FSA, FICA External Consultant, Assets Management (non-voting member)
MEMBERS OF THE AUDIT AnD RISK MAnAGEMEnT cOMMITTEE
Norm Odjick President
Jean-Marie Gagnon Member
Michel Toupin Member
MEMBERS OF THE HUMAn RESOURcES cOMMITTEE
Jinny Thibodeau President
Sophie Picard Member
Danielle Gill Member (end of term August 2012)
Johanne Castonguay Member (since August 2012)
Michel Chalifour External Expert Member
ATTENDANCE AT MEETINGS AND CONFERENCE CALLS hELD By ThE RETIREMENT COMMITTEE IN 2012
Norm Odjick 7 in 7
Ricky Fontaine 5 in 7
Danielle Gill (end in August 2012) 4 in 4
Sophie Picard 4 in 7
Jinny Thibodeau 7 in 7
Angèle Petiquay 7 in 7
Michel Toupin 7 in 7
Johanne Castonguay (since August 2012) 1 in 2
Lison Picard (end in November 2012) 1 in 1
PROFILE SOuGhT FOR MEMBERS OF ThE NBP RETIREMENT COMMITTEE
The “General profile for mem-bers of the NBP Retirement Committee” was established in 2010 to provide guidelines for individuals interested in presenting their candidacy for a position on the Retire-ment Committee.
RBA | AnnuAl RepoRt 20124
SALIENT FACTS
SUSTAInABILITy OF THE PLAn
In 2012, we experienced very acceptable growth of our assets under management, attributable in good part to employer and employee contributions, but above all to returns of nearly 8% on our portfolio, a more than satisfactory result.
To achieve this, the Investment Committee of the NBP Master Trust held eight meetings in 2012 where the emphasis was placed on the close follow-up of each manager. Special meetings took place to establish an optimal investment policy developed on the basis of a liability-driven investment context. The policy will be amended over a six-year period from 2013 to 2018 to maximize returns and minimize the level of risk of our pension plans.
In terms of Plan liabilities, the year 2012 was characterized by a slight decrease in interest rates, the outcome of which was to slightly increase our liabilities.
Naturally, these results had an impact on the financial health of our pension plan. Indeed, Plan solvency decreased from 97% as at December 31, 2011 to 92% as at December 31, 2012 (after amendments reducing benefits). Capitalization varied by 7%, dropping from 111% to 104% (after amendments reducing benefits).
AMEnDMEnTS REDUcInG BEnEFITS
As you will undoubtedly remember, the Retirement Committee elected, in 2010 and 2012, to introduce amendments reducing benefits. The purpose was to improve the financial health of the Plan in terms of its solvency and capitalization. At the present time, we continue to await a response from the Office of the Superintendant of Financial Institutions (OSFI) regarding these amendments. Meanwhile, following a Supreme Court decision handed down in November 2010 in the case of NIL/TU,O Child and Family Services Society vs. BC Government and Service Employee’ Union; and Syndicat canadien des communications, de l’énergie et du papier vs. Native Child and Family Services of Toronto, the OSFI asked us to conduct a comprehensive exercise among our employers (84 employers) in order to determine the jurisdiction under which the employers fall (federal or provincial).
Therefore, it is very likely that our Plan, until recently under federal jurisdiction, may, in the near future, become multi-jurisdictional (under both federal and provincial jurisdiction) based on the proportion of members.
GOVERnAncE
As has been the case for several years, in 2012 we continued to place the emphasis on the sound governance of our organization, more particularly in terms of the development and security of our information systems. To achieve this, we signed service agreements with partners to ensure fast system back-up and greater security at advantageous rates.
FInAncIAL RESULTS
EVOLuTION OF NET ASSETSfor fiscal years ended December 31 (in Canadian dollars)
PERIOD INCREASE NET CUMULATIVE (DECREASE) ASSETS
2012 41,369,135 417,402,415
2011 12,583,998 376,033,280
2010 41,663,481 363,449,282
2009 58,124,420 321,683,265
2008 (38,738,345) 263,558,845
BENEFITS PAID TO RETIREES As at December 31 (in Canadian dollars)
2012 7,705,151
2011 6,674,695
2010 5,566,198
2009 4,766,782
2008 3,817,288
SALIENT FACTS
RBA | AnnuAl RepoRt 20125
lorem ipsum SALIENT FACTS
ChANGES IN NET ASSETSfor fiscal years ended December 31 (in millions of Canadian dollars)
SALIENT FACTS (CONTINUED)
$ Millions
2012Cumulative Variation
0
100
200
300
400
-50
50
150
250
350
450
20112007 2008 2009 2010 2012
ChANGES IN CLIENTELE
PERIOD ACTIVE MEMBERS DEFERRED PENSIONERS EMPLOYERS
2012 2,903 1,112 654 84
2011 2,831 1,098 574 84
2010 2,731 1,088 479 82
2009 2,755 1,004 424 83
2008 2,722 944 371 80
ANNuAL CONTRIBuTIONS By MEMBERS employees / employers / totals – As at December 31 (in Canadian dollars)
PERIOD EMPLOYEES EMPLOYERS TOTALS
2012 9,208,187 16,728,952 25,937,139
2011 8,879,118 16,048,930 24,928,048
2010 8,239,931 14,904,173 23,144,104
2009 7,315,324 13,220,442 20,535,766
2008 6,894,544 12,541,129 19,435,673
RBA | AnnuAl RepoRt 20126
mESSAgE FrOm ThE PrESIdENT ANd ThE gENErAL mANAgEr
DEAR MEMBERS:
IT IS ALwAyS A GREAT PLEASURE FOR US TO
cOnTAcT yOU TO PROVIDE InFORMATIOn
On HOw yOUR PEnSIOn PLAn, THE nATIVE
BEnEFITS PLAn (nBP), IS EVOLVInG .
The year 2012 was a good year overall, with a yield in the range of 7.7% for our portfolio, based on a targeted return of 8%. The slight under-performance is attributable to a real estate investment that did not meet expectations. Despite this, the pension fund’s performance is above the anticipated return of 3.5% plus inflation, and far better than the yield obtained in 2011. Needless to say, such a yield has a positive impact on the financial health of our Plan, as well as its capitalization and solvency.
With respect to Plan liabilities, however, interest rates (indexed and non-indexed) declined slightly in 2012 (from 20 to 30 basis points), which had a negative effect on the financial health of the Plan. The net effect of returns and the variation in interest rates resulted in a drop in Plan solvency from 97% as at December 31, 2011 to 92% as at December 31, 2012 (after amendments reducing benefits). Plan capitaliza-tion decreased from 111% as at December 31, 2011 to 104% as at December 31, 2012 (again after amendments reducing benefits).
Esteemed members, you will undoubtedly recall the amendments made to Plan regulations in 2010 and 2012 that considerably alleviated the pressure on our pension plan. Although we continue to await a response from the Office of the Superintendant of Financial Institutions (OSFI) concerning the acceptance of the amendments reducing benefits, in March 2013 the Superior Court of Quebec acknowledged the power of the NBP Retirement Committee to make such changes.
mESSAgE FrOm ThE rETIrEmENT PrESIdENT COmmITTEE ANd ThE gENErAL mANAgEr
Norm Odjick
Sylvain Picard
RBA | AnnuAl RepoRt 20127
lorem ipsum mESSAgE FrOm ThE PrESIdENT ANd ThE gENErAL mANAgEr
In the same vein, you are surely aware of the tabling of a report prepared by a committee of experts presided over Mr. Alban d’Amours, addressing the future of the retirement system in Quebec. The conclusions and recommendations of this report are consistent with decisions made by the NBP Retirement Committee to improve the financial health of our Plan.
Therefore, we remain confident that we will receive positive feedback in 2013 from the OSFI regarding the amendments essential to maintaining the financial health of our pension plan.
In the meantime, we will stay the course and administer the Plan at lesser cost with substantially lower operating expenses than in 2011. We will place the emphasis on the various guidelines defined in our 2010-2014 strategic planning which, of course, remain relevant to improving the financial health of our Plan, developing our clientele and products, providing satisfactory service to our members, developing our information systems and their security, and maintaining sound governance.
To achieve successful outcomes, we must necessarily have sufficient financial and material resources as well as accessible and competent individuals, from our employees and members of different committees to the consultants who assist us in our different undertakings.
To all these people, we offer heartfelt thanks. Together we shall continue to make the NBP one of the best pension funds.
Norm Odjick President
Sylvain Picard, CPA, CA, CGA, ASC, Adm.A. General Manager
RBA | AnnuAl RepoRt 20128
ACTuArIAL VALuATION
The financial soundness of a defined benefits plan such as the NBP is measured primarily in two different ways:
CAPITALIzATION REVIEw
The evaluation on the basis of capitalization serves to assess the financial situation of the Plan at the time of evaluation based on the premise that the Plan will continue to exist indefinitely. A rate exceeding 100% demonstrates sufficient financing on the long term. If the rate is under 100%, action must be taken to remedy the situation.
SOLVENCy REVIEw
The evaluation on the basis of solvency serves to assess the financial situation of the Plan at a given date, based on the premise that the Plan will be terminated on this date. Using hypotheses prescribed by law, the aim is to determine the capacity of the Plan to fulfil its obligations to its members on the evaluation date. A rate exceeding 100% demonstrates sufficient financing on the evaluation date. If the rate is under 100%, action must be taken to remedy the situation.
ACTuArIAL VALuATION: CAPITALIZATION ANd SOLVENCY rEVIEW
140 %
120 %
100 %
80 %
60 %
40 %
20 %
0 %
Surplus
Deficit
2006
142 %
2012
111%*
2011
118%*
2010
115%*111 %
2009
145 %
20082007
144 %
2005
118 %
2004
115 %
2003
120 %
2002
104%*
0
20
40
60
80
100
120
140
92%*
2012
140 %
120 %
100 %
80 %
60 %
40 %
20 %
0 %
Surplus
Deficit
2009
98 %
2008
90 %*
2011
99 %
2007
2006
98 %*
2010
2005
20042003
2002
110 %97%*97%
91%
105%113%
* From 2009 to 2012, after amendments entailing reductions – pending approval by the OSFI.
* From 2009 to 2012, after amendments entailing reductions – pending approval by the OSFI.
RBA | AnnuAl RepoRt 20129
lorem ipsum rETurNS ON INVESTmENTS
rETurNS ON INVESTmENTS
The investments of the Master Trust Fund, comprised of the pension fund of the Native Benefits Plan (NBP) and the First Nations Public Security Pension Plan (FNPSPP), generated a return of 7.7% in 2012.
The first half of 2012 was marked by high volatility in the financial markets, caused mainly by the economic uncertainty in the eurozone and in China. Stock markets rebounded strongly in the second half of 2012 following the optimism generated by the intervention of the U.S. Federal Reserve and the European Central Bank.
In this context, interest rates decreased slightly and bond markets posted lower returns than the stock markets. The DEX Universe Index, representing Canadian bonds, gained 3.6%. Corporate bonds posted the best returns of the DEX Universe sectors, in a context of shrinking credit spreads compared to federal bonds.
The S&P/TSX Index, representing Canadian equities, gained 7.2%. Seven of the ten index sectors posted positive returns in 2012, including three sectors with returns in excess of 20% (Healthcare, Consumer Staples and Consumer Discretionary sectors). Returns for the Materials sector were down -5.7% in 2012, mainly due to the negative performance of the Gold subsector.
The MSCI World Index, representing global equities, gained 13.3% in Canadian dollars and 15.7% in local currencies, while the MSCI Emerging Markets Index gained 15.7% in Canadian dollars and 17.0% in local currencies. Encouraging signs of economic growth in China led to a strong rebound in emerging markets equities in the second half of 2012.
The U.S. dollar hedging strategy had a 0.2% positive impact on the Master Trust Fund’s performance in 2012, as the Canadian dollar appreciated against the U.S. dollar.
A few changes to the management structure were made in 2012. As indicated in the investment policy, real estate exposure was increased at the beginning of the year to further diversify the investments of the Master Trust Fund and increase current income.
The real estate managers’ mandates were restructured with the closure of funds managed by Maestro, the termination of Optimum’s and Presima’s real estate investment trust mandates, and the addition of a new direct real estate manager, namely Manulife, as of July 1, 2012.
A review of the bond mandates led to the replacement of Addenda Capital by TD Asset Management.
Table A compares the 2012 performance of each asset class of the Master Trust Fund with the performance of the appropriate benchmarks. The performance of the Master Trust Fund in 2012 was 7.7%, or 0.3% less than the 8.0% posted by the benchmark portfolio. The negative spread between the Master Trust Fund and the benchmark portfolio is mainly explained by the liquidation of real estate manager Maestro’s portfolio.
Table B presents the average annual performance of the Master Trust Fund over different periods. Over a period of four years, from 2009 to 2012, the Master Trust Fund posted an average annual performance of 9.0%, compared to 8.8% by the benchmark portfolio.
RBA | AnnuAl RepoRt 201210
rETurNS ON INVESTmENTS
RETURnS On InVESTMEnTS (CONTINUED)
TABLE A
ALLOCATION AND PERFORMANCE By ASSET CLASS AS AT DECEMBER 31, 2012
BENChMARk PORTFOLIO PERFORMANCEPORTFOLIO ALLOCATION AS AT BENChMARk FuND BENCh- VALuEALLOCATION DECEMBER 31, 2012 ASSET CLASS INDEx MARk ADDED
37.0% 38.9% Canadian Bonds DEX Universe 4.8% 3.6% 1.2%
Addenda Capital (until March 31, 2012) 0.5% -0.2% 0.7%
TD Asset Management (since April 1, 2012) 4.5% 3.8% 0.7%
Optimum 4.2% 3.6% 0.6%
21.5% 22.7% Canadian Equities S&P/TSX 12.4% 7.2% 5.2%
Letko Brosseau 15.9% 7.2% 8.7%
Fiera Capital 8.5% 7.2% 1.3%
Triasima 8.2% 7.2% 1.0%
26.0% 25.5% Global Equities MSCI Monde 11.0% 13.3% -2.3%
Hexavest 9.9% 13.3% -3.4%
Sprucegrove 11.7% 13.3% -1.6%
3.0% 2.4% Emerging Market MSCI Emerging 17.3% 15.7% 1.6% Equities Markets
Wellington 17.3% 15.7% 1.6%
7.5% 7.5% Real Estate Inflation + 4% -4.2% 6.3% -10.5%
Bentall Kennedy (direct) 11.0% 6.3% 4.7%
Maestro (direct) (until may 31, 2012) -52.9% s.o. s.o.
Manulife (direct) (since July 1, 2012) 10.8% 2.9% 7.9%
Optimum (REITs) (until June 12, 2012) 8.0% s.o. s.o.
Presima (world) (until June 15, 2012) 13.6% s.o. s.o.
5.0% 3.0% Infrastructures Inflation + 5% -3.8% 7.3% -11.1%
SteelRiver Infrastructure Partners -3.8% 7.3% -11.1%
100% 100% Master Trust Fund Combined Benchmark 7.7%(1) 8.0% -0.3%
(1) Following their liquidation, the Maestro funds were devalued by 52.9%, reducing the total return of the Master Trust by 1.1%. The total return of the Master Trust was 8.8% excluding the performance of Maestro.
N.B. Please note that the above information includes the returns recorded by the First Nations Public Security Pension Plan that holds 1,525,017 units of a total of 31,962,955 units.
RBA | AnnuAl RepoRt 201211
lorem ipsum rETurNS ON INVESTmENTS
RETURnS On InVESTMEnTS (CONTINUED)
TABLE B
MASTER TRuST FuND PERFORMANCE
yEAR 1 yEAR 4 yEARS 10 yEARS
2012 7.7% 9.0% 6.3%
2011 1.6% 2.1% 4.7%
2010 9.1% 1.8% 4.8%
2009 18.3% 2.8% 5.1%
2008 -17.1% 0.9% 4.9%
2007 0.6% 8.0% 7.7%
2006 13.4% 11.8% 8.7%
2005 9.4% 6.4% 8.9%
2004 9.0% 4.5% 9.5%
2003 15.4% 5.5% 8.9%
2002 -6.8% 5.6% 8.7%
2001 1.9% 9.4%
2000 13.0% 11.6%
1999 15.7% 12.2%
1998 7.4% 12.3%
2012
Financial statements of the Fund
nATIVE BEnEFITS PLAn December 31, 2012
RBA | AnnuAl RepoRt 201213
lorem ipsum FINANCIAL STATEmENTS - INdEPENdENT AudITOr’S rEPOrT
INdEPENdENT AudITOr’S rEPOrT
Deloitte s.e.n.c.r.l. 925, Grande Allée Ouest Bureau 400 Québec QC G1S 4Z4 Canada Tél. : 418-624-3333 Téléc. : 418-624-0414 www.deloitte.ca
Independent auditor’s report To the members of the Pension Plan Committee of Native Benefits Plan (Régime des Bénéfices Autochtone) We have audited the accompanying financial statements of the Fund of Native Benefits Plan (Régime des Bénéfices Autochtone), which comprise the statements of net assets available for benefits as at December 31, 2012 and the statement of changes in net assets available for benefits for the year then ended, and a summary of significant accounting policies and other explanatory information. The financial statements of the Fund have been prepared by management based on the financial reporting provisions of article 12 of the Pension Benefits Standards Act, 1985. Management’s responsibility for the financial statements of the Fund Management is responsible for the preparation and fair presentation of the financial statements of the Fund in accordance with the financial reporting provisions of article 12 of the Pension Benefits Standards Act, 1985, and for such internal control as management determines is necessary to enable the preparation of financial statements of the Fund that are free from material misstatement, whether due to fraud or error. Auditor’s responsibility Our responsibility is to express an opinion on the financial statements of the Fund based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements of the Fund are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements of the Fund. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements of the Fund, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements of the Fund in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements of the Fund. We believe that the audit evidence we have obtained in our audit is sufficient and appropriate to provide a basis for our audit opinion.
RBA | AnnuAl RepoRt 201214
FINANCIAL STATEmENTS - INdEPENdENT AudITOr’S rEPOrT
InDEPEnDEnT AUDITOR’S REPORT (CONTINUED)
Independent auditor’s report Native Benefits Plan (Régime des Bénéfices Autochtone) Page 2
Opinion In our opinion, the financial statements of the Fund present fairly, in all material respects, the net assets available for benefits of Native Benefits Plan (Régime des Bénéfices Autochtone) as at December 31, 2012 and the changes in net assets available for benefits for the year then ended, in accordance with the financial reporting provisions of article 12 of the Pension Benefits Standards Act, 1985. Basis of accounting and restriction on use Without modifying our opinion, we draw attention to Note 3 to the financial statements of the Fund, which describes the basis of accounting. The financial statements of the Fund are prepared to assist the members of the pension plan committee of Native Benefits Plan (Régime des Bénéfices Autochtone) to meet the requirements of the Office of the Superintendent of Financial Institutions. As a result, the financial statements of the Fund may not be suitable for another purpose. Our report is intended solely for the members of the pension plan committee of Native Benefits Plan (Régime des Bénéfices Autochtone) and the Office of the Superintendent of Financial Institutions and should not be used by parties other than the members of the pension plan committee of Native Benefits Plan (Régime des Bénéfices Autochtone) or the Office of the Superintendent of Financial Institutions. June 13, 2013 ______________________________ 1 CPA auditor, CA, public accountancy permit No. A117569
RBA | AnnuAl RepoRt 201215
lorem ipsum FINANCIAL STATEmENTS - mANAgEmENT rESPONSIBILITY
Management responsibility representation of the financial statements of the Fund Enclosed Fund of Native Benefits Plan (Régime des Bénéfices Autochtone) financial statements of the Fund are the responsibility of the Pension Plan management. They were approved by the Pension Plan Committee. These financial statements are in accordance with the basis of accounting described in Note 3 to the financial statements. These financial statements include amounts based on best judgments and estimates of management, if applicable. Management has established internal control systems in order to obtain objective and reliable financial information and to safeguard pension plan assets. The financial statements of the Fund have been audited by an independent auditor, Deloitte s.e.n.c.r.l., and the auditor’s report, dated June 13, 2013, specifies the scope of the examination and indicates the opinion on these documents. The Pension Plan Committee takes on the responsibility towards those financial statements of the Fund following a decision taken at a Pension Plan Committee meeting. director director
mANAgEmENT rESPONSIBILITY rEPrESENTATION OF ThE FINANCIAL STATEmENTS OF ThE FuNd
RBA | AnnuAl RepoRt 201216
FINANCIAL STATEmENTS
Native Benefits Plan(Régime des Bénéfices Autochtone)Statement of net assets available for benefits of the FundDecember 31, 2012
2012 2011$ $
AssetsUnits held in the global trust and other investment (Note 5) 407,942,038 369,503,891
Accounts receivable
Contributions receivable (Note 6)
Employees 1,334,678 1,234,043
Employers 1,862,473 821,681
Aboriginal Affairs and Northern Development Canada 652,847 675,674
Accrued interest and dividends 712,559 1,288,442
Related parties (Note 4) 547,882 306,837
Sales taxes receivable 125,571 62,487
Others 9,984 10,053
Prepaid expenses 29,762 8,898
Fixed assets (Note 10) 115,580 113,839
Cash 5,019,182 3,029,716
Total assets 418,352,556 377,055,561
LiabilitiesAccounts payable
Benefits and refunds payable 85,797 372,245
Accounts payable and accrued liabilities 862,650 607,283
Related parties (Note 8) 1,694 42,753
Total liabilities 950,141 1,022,281 Net assets available for benefits 417,402,415 376,033,280
Contractual obligations (Note 11)
On behalf of the Pension Plan Committee
________________________________________ member
________________________________________ member
Page 4
STATEmENTS OF NET ASSETS OF ThE FuNd AvAILAbLE FOr ThE PrOvISION OF bENEFITS DECEmbEr 31, 2012
RBA | AnnuAl RepoRt 201217
lorem ipsum FINANCIAL STATEmENTS
Native Benefits Plan(Régime des Bénéfices Autochtone)Statement of changes in net assets available
for benefits of the Fundyear ended December 31, 2012
2012 2011 $ $
Increase in net assetsInvestment income from the units held in the global trust (Note 5) 32,584,866 649,895
Share of results of Investissements Premières Nations
du Québec, limited partnership (82,256) (13,476)
Federal grant (Note 5) - 334,000
Contributions (Note 6)
Employees eligible to Aboriginal Affairs and Northern
Development Canada contribution
Employees 5,661,986 5,628,691
Employers 6,182,802 3,000,301
Aboriginal Affairs and Northern Development Canada 4,099,497 7,136,514
Employees not eligible to Aboriginal Affairs and
Northern Development Canada contribution
Employees 3,546,201 3,250,427
Employers 6,446,653 5,912,115
Transfers from other plans and additional
contributions 766,845 1,215,995
Increase in assets 59,206,594 27,114,462
Decrease in net assetsNet operating expenses – Schedule 1 1,797,394 1,813,484
Management fees on investments 1,267,388 1,104,382
Benefits paid 7,705,151 6,674,695
Refunds and transfers
Refund of contributions 2,893,641 2,010,503
Transfers to other plans 4,173,885 2,927,400
Decrease in assets 17,837,459 14,530,464
Increase in net assets 41,369,135 12,583,998
Net assets available for benefits
beginning of year 376,033,280 363,449,282
Net assets available for benefitsend of year 417,402,415 376,033,280
Page 5
STATEmENTS OF ChANgES IN NET ASSETS OF ThE FuNd AvAILAbLE FOr ThE PrOvISION OF bENEFITS DECEmbEr 31, 2012
RBA | AnnuAl RepoRt 201218
NOTES TO FINANCIAL STATEmENTS
NOTES TO FINANCIAL STATEmENTS DECEmbEr 31, 2012
Native Benefits Plan (Régime des Bénéfices Autochtone) Notes to financial statements December 31, 2012
Page 6
1. Description of the Plan The following description of the Native Benefits Plan (Régime des Bénéfices Autochtone) (the “Plan”) is a summary only. For more complete information, reference should be made to the Plan Agreement. General The Plan offers to all participating employees a contributory defined benefit pension plan. The participants have the option to join one of the two types of plan offered. Eligible employer is a native band or organization whose membership request has been accepted by the Pension Plan Committee. In accordance with the Plan, contributions are paid by the employer or Aboriginal Affairs and Northern Development Canada and the participants. The Plan is registered under the Federal Pension Benefits Standards Act, 1985, registration number 55865. Funding policy In accordance with the Federal Pension Benefits Standards Act, 1985, the Plan sponsor must fund the benefits determined under the Plan. The determination of the value of these benefits is made on the basis of an annual actuarial valuation or according to the Pension Plan Committee approval (Note 6). Normal retirement age The normal retirement age is 65. Service pension A service pension is available based on the number of years of service paid into the plan multiplied by 1⅞% or 2% depending on the plan type chosen, of the best five years’ average salary. Only to the first two plans, to the pension base, a temporary pension is paid up to 65 years old based on $275 by the number of recognized years of service as at December 31, 2000. Disability exemption A disability exemption is available at any age with a minimum of two years credited service for the two plans. The exemption is granted from 65 days of illness. Survivors’ pension A survivor pension is paid to the spouse of a deceased participant. The spouse will receive a pension equal to 60% of the calculated pension, plus an increase for each child up to a maximum of 100%. Benefit for optional or early retirement Any participant to the two plans can take an optional retirement without reduction if he or she respects certain conditions. Furthermore, it is also possible to take early retirement with reduction 10 years from the normal date on which he or she could have taken an optional retirement without reduction.
RBA | AnnuAl RepoRt 201219
lorem ipsum NOTES TO FINANCIAL STATEmENTS
nOTES TO FInAncIAL STATEMEnTS (CONTINUED)DECEmbEr 31, 2012
Native Benefits Plan (Régime des Bénéfices Autochtone) Notes to financial statements December 31, 2012
Page 7
1. Description of plan (cont’d) Benefit and reimbursement in case of departure A member who ceases to be an employee is entitled to redeem the value of these vested pension benefits. However, if the member is eligible to receive a pension, he or she may not obtain a refund. Income taxes The Plan is a registered pension trust as defined in the Income Tax Act and is not subject to income taxes. Asset management entrusted to the global trust Investments are expressed as numbers of shares in the global trust. Each share confers to its holder participation in the net assets and revenue of the global trust. The global trust was created with the courier of values, Fiducie Desjardins, in order to administer other pension plans based on a mutual investment policy.
2. Changes in accounting policies Future accounting changes In May 2011, the IASB issued IFRS 13, “Measuring fair value.” This standard provides additional details on the assessment of fair value and disclosures related to the assessment of fair value when measuring fair value is required or permitted by another IFRS. The provisions set out in IFRS 13 are effective for financial statements covering periods beginning on or after January 1, 2013. Early adoption is permitted. The Plan is currently evaluating the impact of this new standard on its financial report.
3. Accounting policies Basis of presentation These financial statements have been prepared in accordance with the significant accounting policies set out below to comply with the account requirements prescribed by the article 12 of Pension Benefits Standards Act, 1985. The basis of accounting used in these financial statements materially differs from Canadian accounting standards for pension plans because it does not include information with respect to pension obligations and related disclosures. Consequently, these financial statements do not purport to show the adequacy of the plan’s assets to meet its pension obligations. Investments Investments are stated at fair value. The variance between the fair value of investments and their carrying value at the beginning and at the end of the year is accounted for as “Investment income from the units held in the global trust.”
RBA | AnnuAl RepoRt 201220
NOTES TO FINANCIAL STATEmENTS
nOTES TO FInAncIAL STATEMEnTS (CONTINUED)DECEmbEr 31, 2012
Native Benefits Plan (Régime des Bénéfices Autochtone) Notes to financial statements December 31, 2012
Page 8
3. Accounting policies (cont’d) Foreign currency translation Monetary assets and liabilities in foreign currency are translated in Canadian dollars at the exchange rate in effect at the end of the year. The elements of the changes in net assets available for benefits are translated at the exchange rate when the transactions occur. The gains or losses from the fluctuation of the exchange rate are accounted for in the statement of changes in the net assets available for benefits under the “Investment income from the units held in the global trust” account. Fixed assets Fixed assets are recorded at cost in the statement of net assets available for benefits. Depreciation is calculated on the following basis and rates: Basis Rates Office furniture and equipment Declining balance 20%
Computerized equipment Declining balance 30% Use of estimates The preparation of financial statements requires management to make estimates that affect the amounts of assets and liabilities reported in the financial statements. Those estimates also affect the disclosure of contingencies at the date of the financial statements. Actual results could differ from those estimates.
4. Accounts receivable – Related parties
2012 2011
$ $
RBA Financial Group 547,882 306,837
547,882 306,837
RBA | AnnuAl RepoRt 201221
lorem ipsum NOTES TO FINANCIAL STATEmENTS
nOTES TO FInAncIAL STATEMEnTS (CONTINUED)DECEmbEr 31, 2012
Native Benefits Plan (Régime des Bénéfices Autochtone) Notes to financial statements December 31, 2012
Page 9
5. Units held in the global trust and other investment The Plan holds 30,437,937 units which represent approximately 95% (28,596,985 units in 2011) of the total number of units issued by a global trust which securities are in custody of Fiducie Desjardins. The composition of investments determined on the basis of units held by the Plan at the global trust is as follows:
2012 2011
$ $
Money market
Short-term maturity 1,336,840 1,590,845
Asset-backed commercial paper (ABCP) - 253,303
Canadian bonds
(yield between 1% and 11%) 145,693,032 142,602,692
Canadian shares 92,114,011 88,879,300
American shares - 178,988
Foreign investment funds
International shares fund 121,269,490 105,673,545
Real estate funds
Real estate companies 32,195,797 13,870,915
Infrastructure funds* 13,215,783 14,254,962
Global trust units value 405,824,953 367,304,550
2 334 units of Investissement Premières Nations du Québec,
limited partnership, that represent 29.17% of outstanding units** 2,117,085 2,199,341
Total investments 407,942,038 369,503,891 * The Pension Plan Committee is engaged to invest a maximal amount of US$15,000,000 in Steelriver’s
Infrastructure Fund North America. This amount represents the total commitment of the global trust. ** In 2011, the Pension Plan Committee completed its investment in Investissement Premières Nations du
Québec for a total amount of $2,000,000. Furthermore, the federal government invested $334,000 on the Plan’s behalf, for a total investment of $2,334,000. This value does not represent the liquidation value of the investment.
RBA | AnnuAl RepoRt 201222
NOTES TO FINANCIAL STATEmENTS
nOTES TO FInAncIAL STATEMEnTS (CONTINUED)DECEmbEr 31, 2012
Native Benefits Plan (Régime des Bénéfices Autochtone) Notes to financial statements December 31, 2012
Page 10
5. Units held in the global trust and other investment (cont’d) Revenues generated by the composition of investments held by the Plan, established according to the units held by it to the global trust, are as follows: 2012 2011 $ $ Interests 4,029,725 3,732,203 Dividends 8,851,643 7,061,266 Gain (loss) on sale of investments 3,873,605 (12,802,594) Distribution from real estate company 330,574 827,770 Current period change in market values of investments 15,499,319 1,831,250 32,584,866 649,895
6. Funding policy Under the terms of the Plan, member participants’ contributions are 4.6%, 6.25%, 6.8% or 8.5%. Employers must provide the necessary balance of funding based on actuarial valuations in order for benefits to be fully provided for upon the retirement of their member participants. When the salaries of member participants of certain employers are eligible for Aboriginal Affairs and Northern Development Canada contributions, the employer contribution is paid directly by Aboriginal Affairs and Northern Development Canada. The employer contribution has been maintained at 182% of the member participants’ contributions. The most recent actuarial valuation of capitalization was carried out by Normandin Beaudry on December 31, 2011.
7. Capital management The Plan’s objectives when managing capital are to guarantee the integral capitalization of the long-term benefits. The Plan manages its investments in order to generate a return making it possible to achieve this goal. The Pension Plan Committee established an investment policy in order to guide the portfolio managers towards the realization of this objective. An actuarial evaluation must be filed with the authority of regulation at least every three years. If the Plan is overdrawn, an actuarial valuation including a plan of elimination of any deficit must be filed with the authority of regulation at every year.
8. Accounts payable – Related parties 2012 2011 $ $ First Nations Public Security Pension Plan 1,694 42,753
RBA | AnnuAl RepoRt 201223
lorem ipsum NOTES TO FINANCIAL STATEmENTS
nOTES TO FInAncIAL STATEMEnTS (CONTINUED)DECEmbEr 31, 2012
Native Benefits Plan (Régime des Bénéfices Autochtone) Notes to financial statements December 31, 2012
Page 11
9. Related party transactions The Plan charged resources utilization fees of $591,142 ($628,274 in 2011) to RBA Financial Group. These transactions are in the normal course of business and are measured at the exchange value. Entities related to the Plan are RBA Financial Group, First Nations Public Security Pension Plan and RBA Foundation. All activities of these entities are made on the premises of the Plan by the employees hired by the Plan. A portion of the expenses of the Plan are charged to these related parties (excluding the Foundation). Expenses distributed to RBA Financial Group include compensation and benefits, rent, office supplies, telecommunications and translation, and, for First Nations Public Security Pension Plan, a portion of costs related with IT consultants and fees related to actuaries, the Investment Committee, and performance analysis and asset management.
10. Fixed assets 2012 2011 Accumulated Net book Net book Cost amortization value value
$ $ $ $ Office furniture and equipment 206,887 138,472 68,415 53,877 Computerized equipment 162,716 115,551 47,165 59,962
369,603 254,023 115,580 113,839
11. Contractual obligations Total commitment under an operating lease for premises is $497,340 ($575,526 in 2011). Minimum future payments under this contract over each of the next years are as follows:
$
2013 93,773
2014 to 2017 94,957
2018 23,739 A part of these payments is charged to RBA Financial Group. Under agreements with portfolio managers and a security custodian, the Plan has committed to pay management fees based on the fair value of the plan’s assets. Those agreements can be terminated upon a 30 days notice.
RBA | AnnuAl RepoRt 201224
NOTES TO FINANCIAL STATEmENTS
nOTES TO FInAncIAL STATEMEnTS (CONTINUED)DECEmbEr 31, 2012
Native Benefits Plan (Régime des Bénéfices Autochtone) Notes to financial statements December 31, 2012
Page 12
12. Financial instruments and risk management The Plan has exposure to the following risks from its use of financial instruments: credit risk, market risk and liquidity risk. The following analysis provides a measurement of risk as at December 31, 2012. The objective of risk management is to achieve a diversifying of risks and returns in order to minimize the likelihood of an overall reduction in total Plan value and maximize the opportunity for gains over the entire portfolio. The trustees also manage the liquidity risk so that there is sufficient liquidity to meet current benefit payments and to give the Plan the ability to adjust the asset mix in response to the changes in the market conditions. Policies Through its Investment Committee, the Pension Plan Committee has developed an investment policy addressing the manner in which the Plan shall be invested. Investments shall be selected and held in accordance with the criteria and limitations set forth in the policy and in accordance with the relevant legislation. The policy is reviewed at least annually. The investment policy includes guidelines on asset mix and risk allocation. The document lists the investment constraints, for example, the maximum exposure permitted for a single issuer, the liquidity requirements, and currency management. The policy also identifies the authorized counterparties and includes the approval requirements and trading limits. The Investment Committee meets regularly to assess the investment risk associated with the portfolio and determine action plans, if required. The risk management strategy of the Plan has not changed during the year ended December 31, 2012. Credit risk The concentration of credit risk exists when a significant part of portfolio is invested in securities having similar characteristics or subject to similar variation linked to the economical or political conditions. The Plan established an investment policy to which must conform assets managers, which allows it to minimize the credit risk. The Plan’s principal financial assets are cash, accounts receivable and investments held in the global trust and other investment, which are subject to credit risk. The carrying amounts of financial assets on the statement of net assets available for benefits represent the Plan’s maximum credit exposure at year end date. The Plan’s credit risk is primarily attributable to its investments in bonds held through units of the global trust.
RBA | AnnuAl RepoRt 201225
lorem ipsum NOTES TO FINANCIAL STATEmENTS
nOTES TO FInAncIAL STATEMEnTS (CONTINUED)DECEmbEr 31, 2012
Native Benefits Plan (Régime des Bénéfices Autochtone) Notes to financial statements December 31, 2012
Page 13
12. Financial instruments and risk management (cont’d) Credit risk (cont’d) The credit risk associated with units held in the global trust and represented by bonds is limited, since the investment policy provides that the counterparties shall be either governments, governmental agencies or companies (which can be issued in foreign currency). Further, all bonds shall be made up of investments rated below a “DBRS” or “Standard & Poor’s” credit rating of BBB or equivalent. As at December 31, 2012, the Plan has a significant concentration of risk with the Canada and provincial governments, cities and other companies. This concentration relates primarily to the holding, through units held in the global trust of $60,237,663 of securities issued by provincial governments and $35,696,910 of securities issued by cities and other companies. Market risk Market risk is the risk of loss that results from fluctuations in equity prices, interest and exchange rates. The Plan is exposed to market risk from its investing activities. The level of risk to which the Plan is exposed varies depending on market conditions and the composition of the asset mix. Price risk The Plan manages the price risk primarily through diversifying the investments held in the global trust across industry sectors and through investment strategies. As at December 31, 2012, a 10% change in market prices would result in a $21,338,350 change in investment in shares and net assets of the Plan. Interest rate risk Interest rate risk refers to the effect on the fair value of the Plan’s assets due to fluctuations in interest rates. The fair value of the Plan’s assets is affected by short-term changes in interest rates. A 1% increase or decrease in interest rates would result in a $9,913,496 decrease and a $9,913,496 increase, respectively, in the value of the Plan’s investment in fixed-income securities and net assets as at December 31, 2012. Currency risk Currency risk arises from the Plan’s holdings of foreign currency-denominated investments through units held in the global trust. As at December 31, 2012, the Plan’s exposure to currency risk in Canadian dollars is $134,485,273. As at December 31, 2012, a 1% change in exchange rate between the Canadian dollar and any other currency would have a $1,344,853 impact on the Plan’s foreign currency-denominated investments through units held in the global trust and net assets.
RBA | AnnuAl RepoRt 201226
NOTES TO FINANCIAL STATEmENTS
nOTES TO FInAncIAL STATEMEnTS (CONTINUED)DECEmbEr 31, 2012
Native Benefits Plan (Régime des Bénéfices Autochtone) Notes to financial statements December 31, 2012
Page 14
12. Financial instruments and risk management (cont’d) Liquidity risk Liquidity risk refers to the risk that the Plan does not have sufficient cash to meet its current payment liabilities, including benefit payments, and to acquire investments in a timely and cost-effective manner. The liquidity position of the Plan is analyzed weekly to ensure the Plan maintains a sufficient percentage of its net assets in very liquid assets such as cash and money market securities. The Plan maintains, through units held in the global trust, a portfolio of highly marketable assets, specifically Canada and provincial governments bonds that can be sold or funded on a secured basis as protection against any unforeseen interruption to cash flows. Fair value The fair value of cash, accounts receivable and accounts payable approximates their carrying value due to their short-term maturity. Fair value hierarchy Financial instruments recorded at fair value on the statement of net assets available for benefits are classified using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels: Level 1 – valuation based on quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 – valuation techniques based on inputs other than quoted prices included in Level 1 that are
observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices);
Level 3 – valuation techniques using inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The fair value hierarchy requires the use of observable market inputs whenever such inputs exist. A financial instrument is classified to the lowest level of the hierarchy for which a significant input has been considered in measuring fair value.
RBA | AnnuAl RepoRt 201227
lorem ipsum NOTES TO FINANCIAL STATEmENTS
nOTES TO FInAncIAL STATEMEnTS (CONTINUED)DECEmbEr 31, 2012
Native Benefits Plan (Régime des Bénéfices Autochtone) Notes to financial statements December 31, 2012
Page 15
12. Financial instruments and risk management (cont’d) Fair value hierarchy (cont’d) The following table presents the composition of investments held by the Plan through units issued by the global trust. These units are recorded at fair value in the statement of net assets available for benefits: 2012 Level 1 Level 2 Level 3 Total
$ $ $ $ Investments held in the global trust Money market 1,146,859 189,981 - 1,336,840 Canadian bonds - 144,740,712 952,320 145,693,032 Canadian shares 88,787,022 3,326,989 - 92,114,011 International shares funds - 121,269,490 - 121,269,490 Real estate companies - - 32,195,797 32,195,797 Infrastructure funds 994,941 - 12,220,842 13,215,783Investissement Premières Nations du Québec, limited partnership - - 2,117,085 2,117,085Total investments 90,928,822 269,527,172 47,486,044 407,942,038 2011 Level 1 Level 2 Level 3 Total
$ $ $ $ Investments held in the global trust Money market 1,539,622 51,223 - 1,590,845 Asset-backed commercial paper (ABCP) - - 253,303 253,303 Canadian bonds - 142,602,692 - 142,602,692 Canadian shares 84,573,782 4,305,518 - 88,879,300 American shares 178,988 - - 178,988 International shares funds - 105,673,545 - 105,673,545 Real estate companies - - 13,870,915 13,870,915 Infrastructure funds - - 14,254,962 14,254,962Investissement Premières Nations du Québec, limited partnership - - 2,199,341 2,199,341Total investments 86,292,392 252,632,978 30,578,521 369,503,891 During the year, there has been no significant transfer of amounts between Level 1 and Level 2.
RBA | AnnuAl RepoRt 201228
NOTES TO FINANCIAL STATEmENTS
nOTES TO FInAncIAL STATEMEnTS (CONTINUED)DECEmbEr 31, 2012
Native Benefits Plan (Régime des Bénéfices Autochtone) Notes to financial statements December 31, 2012
Page 16
12. Financial instruments and risk management (cont’d) Fair value hierarchy (cont’d) The following table reconciles the fair value of financial instruments classified in Level 3 from the beginning balance to the ending balance: Investissement Premières Nations du Québec, Canadian Real estate Infrastructure limited 2012 ABCP bonds companies funds partnership $ $ $ $ $ Fair value, beginning of year 253,303 - 13,870,915 14,254,962 2,199,341
Gains (losses) recognized in statement of changes in net assets available for benefits - 32 (370,320) 1,958,283 (82,256)
Purchases - 952,288 19,025,786 170,207 - Sales/distribution (253,303 ) - (330,584) (4,162,610 ) - Fair value, end of year - 952,320 32,195,797 12,220,842 2,117,085
Unrealized gains (losses) included in change in market values of investments with respect to financial assets held as at December 31 - 32 (370,320) 1,958,283 (82,256)
RBA | AnnuAl RepoRt 201229
lorem ipsum NOTES TO FINANCIAL STATEmENTS
nOTES TO FInAncIAL STATEMEnTS (CONTINUED)DECEmbEr 31, 2012
Native Benefits Plan (Régime des Bénéfices Autochtone) Notes to financial statements December 31, 2012
Page 17
12. Financial instruments and risk management (cont’d) Fair value hierarchy (cont’d) Investissement Premières Nations du Québec, Real estate Infrastructure limided2011 ABCP companies funds partnership $ $ $ $ Fair value, beginning of year 247,942 10,569,801 13,745,087 1,378,817
Gains (losses) recognized in statement of changes in net assets available for benefits 5,361 (2,395,685) (40,106 ) (13,476)
Purchases - 6,554,155 1,412,951 834,000 Sales/distribution - (857,356) (862,970 ) - Fair value, end of year 253,303 13,870,915 14,254,962 2,199,341
Unrealized gains (losses) included in change in market values of investments with respect to financial assets held as at December 31 5,361 (2,395,685) (40,106 ) (13,476)
13. Derivative products As at December 31, 2012, the Plan, through units held in the global trust, holds foreign exchange contracts (USD currency sale contract), ending January 15, 2013 and April 15, 2013, for a notional amount of US$42,172,451 (US$36,797,283 in 2011) and a fair value of ($202,382) ($471,449 in 2011). As at December 31, 2012, the Plan, through units held in the global trust, holds foreign exchange contracts (USD currency purchase contract), ending on January 15, 2013, for a notional amount of US$21,163,204 (US$17,921,993 in 2011) and a fair value of nil (nil in 2011). The gains or losses from the fluctuation of the fair value of these contracts are accounted for in the statement of changes in net assets available for benefits under the “Investment income from the units held in the global trust” account.
14. Comparative figures Certain of the comparative figures have been reclassified to conform to the current year’s presentation.
RBA | AnnuAl RepoRt 201230
FINANCIAL STATEmENTS - NATIVE BENEFITS PLAN
NATIVE BENEFITS PLAN NET OPErATINg ExPENSES yEAr ENDED DECEmbEr 31, 2012
SChEduLE 1
Schedule 1Native Benefits Plan(Régime des Bénéfices Autochtone)Net operating expenses
Budget Actual Actual2012 2012 2011
$ $ $
Revenues
Grant – Aboriginal Affairs and Northern Development Canada
Administrative expenses 72,875 76,534 59,600
Grant – Health Canada 39,600 39,575 39,575
Others 30,000 80,721 95,340
142,475 196,830 194,515
Expenses
Administration fees 281,600 222,967 209,199
Amortization of fixed assets - 33,939 35,588
Furniture, office equipment and software 28,700 12,485 20,082
Liability insurance 19,000 18,949 19,750
Office of the Superintendant
of Financial Institutions 42,000 36,549 41,328
Professional fees – actuaries 361,100 303,668 395,662
Professional fees 124,200 228,601 179,599
Auditors fees – audit 27,000 29,033 -
Auditors fees – consultation 5,000 - 21,100
Cost of general meeting 85,000 103,478 88,502
Cost of special general meeting 70,000 66,250 -
Committees meetings 101,800 114,595 104,871
Salaries and fringe benefits 825,980 787,662 840,963
Retirement seminars 66,000 36,048 51,355
2,037,380 1,994,224 2,007,999
Excess of expenses for the year (1,894,905) (1,797,394) (1,813,484)
year ended December 31, 2012
Page 18
RBA | AnnuAl RepoRt 201231
lorem ipsum mAIN ExTErNAL AdVISErS ANd mANAgErS - POrTFOLIO mANAgErS
mAIN ExTErNAL AdVISErS POrTFOLIO mANAgErS
ActuariesNormandin Beaudry
Legal advisersGagné, Letarte, s.e.n.c.
Courier of valuesFiducie Desjardins
Information network administratorsBZ inc.
External auditorsSamson Bélair / Deloitte & Touche
Financial institutionBanque Royale du Canada
Asset management adviserNormandin Beaudry
Canadian Bonds Gestion TD Optimum
Canadian stocks Fiera Sceptre Letko Brosseau Triasima
Foreign investments (REITs) Hexavest Sprucegrove
Emerging markets Wellington
Real Estate Bentall Kennedy (Westpen properties) Maestro Gestion d’actifs Manuvie
Infrastructures SteelRiver
Private investment Investissement Premières Nations du Québec
RBA | AnnuAl RepoRt 201232
EmPLOYEr mEmBErS
EmPLOYEr mEmBErS AS AT dECEmBEr 31, 2012
Abénakis de Wôlinak
Algonquin Anishinabeg Nation
Algonquin Nation Programs and Services Secretariat
Assemblée des Premières Nations du Québec et du Labrador
Centre chiropratique Harold Chantal enr.
Centre de réadaptation Wapan
Centre de rénovation Home Hardware de Maniwaki inc.
Centre Miam Uapukun Inc.
Centre Walgwan Center
Centre Wanaki Center
CKAU-FM
Clinique de Physiothérapie Lynda Cayer Physiotherapy Clinic
Commission de développement économique des Premières Nation du Québec et du Labrador
Commission de la santé et des services sociaux des Premières Nations du Québec et du Labrador
Commission sur le développement des ressources humaines des Premières Nations du Québec et du Labrador
Conseil d’Odanak
Conseil de bande de Pessamit
Conseil de la nation Anishinabe du Lac Simon
Conseil de la Nation Atikamekw
Conseil de la Nation huronne-wendat
Conseil de la Nation Innu de Nutashkuan
Conseil de la Nation Innu Matimekush-Lac John
Conseil de la Première Nation Abitibiwinni
Conseil de la Première Nation des Innus Essipit
Conseil des Anicinapek de Kitcisakik
Conseil des Atikamekw d’Opitciwan
Conseil des Atikamekw de Manawan
Conseil des Atikamekw de Wemotaci
Conseil des Innus de Ekuanitshit
Conseil des Innus de Pakua Shipu
Conseil des Montagnais de Unamen Shipu
Conseil en Éducation des Premières Nations
Conseil scolaire des Premières Nations en éducation des adultes
Conseil Tribal Mamuitun
Corporation de développement économique Ekuanitshitnnuat
Corporation de développement économique Montagnaise
Corporation du Musée de la Nation huronne-wendat
Corporation Wabak Pimadizi
Développement Piékuakami Ilnuatsh S.E.C.
Développement des Ressources Humaines Abitibiwinni - Kitcisakik (DRHAK)
Distribution pétrolière Naskinnu S.E.C.
First Nation – Kipawa
Forêt modèle du Lac-Saint-Jean/Milu Nemetatau
Garage Martin W. Picard
Gestion Ka Uauetinahk
Grand conseil de la Nation Waban-Aki
Groupe-Conseil Nutshimit
Immobilière Montagnaise
Indian Way School
Innu Takuaikan Uashat Mak Mani Utenam
Institut Tshakapesh
Investissement Premières Nations du Québec
K.Z. Freshmart
Kanesatake Health Center Inc.
Kitigan Zibi Anishinabeg Nation
Les Artisans Indiens du Québec
Long Point First Nation
Mawiomi Treatment Services inc.
Micmacs of Gesgapegiag Band
Mohawk Council of Kanesatake
NACCA, National Aboriginal Capital Corporations Association
Nation Micmac de Gespeg
Native Women’s Association of Canada
Pekuakamiulnuatsh Takuhikan
Régime des Bénéfices Autochtone
Regroupement Mamit Innuat inc.
Regroupement Petapen inc.
Société Aéroportuaire
Société d’histoire et d’archéologie de Pointe-Bleue
Société de Crédit Commercial Autochtone
Société de développement des Naskapis
Société de développement économique Ilnu
Société des entreprises Innues d’Ékuanitshit
Société en commandite Carrefour La Tuque (1995)
Société en commandite Minashtuk
Société touristique des Autochtones du Québec/Quebec Aboriginal Tourism Corporation
Solutions Nügaz Inc.
Step by Step Child & Family Center
Sylvie Roy, Psychologue
Timiskaming First Nation
Uanan Experts-Conseils inc.
Uisht Construction
Voyages Inter-Nations
Wolf Lake First Nation
PROFILE OF THE RBA FINANcIAL GROUPThe Native Benefits Plan is offered through the RBA Financial Group, an organization registered with the Autorité des marches financiers (No. 508106).
The RBA Financial Group is a non-profit organization owned and managed by First Nations. It has operated as a promoter and administrator of pension plans for First Nations since 1979. The Group specializes in developing and offering individual and group financial products and services adapted to its clientele’s financial security needs.
The RBA Financial Group administers the following pension plans for First Nations: the Native Benefits Plan (NBP), the First Nations Public Security Pension Plan (FNPSPP) and the NBP Defined Contribution Pension Plan.
Over the years, the RBA Financial Group has directed all efforts toward offering competitive fringe benefits to employers adapted to the fiscal specificities and rights of First Nations, including group insurance, occupational health and safety and other financial products
SOcIAL OUTREAcHIn 2012, the RBA Financial Group established a foundation (RBA Foundation) whose mission is to improve living conditions and contribute to the wellbeing of First Nations in Quebec.
All our organizations have been involved socially for several years through sponsorships. In 2012, we contributed to several projects in the fields of health, education and sports for a total of $25,000.
2936, rue de la Faune, Suite 202
Wendake (Québec) G0A 4V0
T 418 847-1840 • 1 888 242-0277
F 418 847-3990
rbagroupefinancier.com Recycled paper