Central Treasury Trust
Regional Information Meetings May 06
Central Treasury Trust
Background
Response to Feasibility Study
Evolution and progress for current investments
Central Treasury Trust •
•
•
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ILCU Credit Union Movement Proposal
Facilitated by Davy
Authorised by the Regulator
Compliant with The Order
Central Treasury Trust
Central Treasury Managed
Fund
(Fund of Funds)
Short-Term Liquidity
Fund
(up to 15 months)
Medium-Term
Fund
(1 - 5 years)
Long-Term
Fund
(5 – 10 years)
• Phase 1 = Convert CIM Ongoing Fund into CTT on May 18th
• Phase 2 = Direct investment into other sub-funds at a later stage
(Note no CIM transactions can be processed on May 18th or 19th due to
conversion to CTT)
Central Treasury Trust
• Only fund of its type fully compliant and authorised by the Regulator
• Separate Legal Entity – Monitored independently by Northern Trust
• Daily Liquidity
• Professionally managed
• Diversification of counterparty risk
• Asset Allocation
• Risk Adverse – No Equities, Property or Hedge Funds, fx currency
• All investments held to maturity are capital guaranteed
Central Treasury Trust
• Role of Northern Trust
• Administration = Fund accounting
• purchase (lodgements) & sale (withdrawals) of funds/units
• calculating NAV & income/interest
• maintaining register of unit holders
• cash settlement to/from counterparties
• prepare unit trust accounts for auditors
• Trustee & Custodian
• legal owner of funds assets on behalf of the investors
• holds funds assets in custody on behalf of the investors
• One of largest Fund Administrators in world
• 97 countries & €2.6tr under management
Central Treasury Trust
Key Changes for Credit Unions
• Cut Off Times
• Instruction Forms
• Contract Notes
• CIM Statements
Central Treasury Trust
Key Changes - Cut Off Times
• Instructions will continue to be sent to ILCU
– (not to Davy or NT)
• Funds will continue to be sent directly to/ received from the ILCU
bank account at BOI Rathfarnham Shopping Centre Dublin 14
– Bank account no = 46146275
– Sort Code = 900201
• Cheques & Lodgment/Withdrawal instructions to be received by
ILCU by close of business evening before dealing day
• Lodgements by bank transfer can be done on morning of dealing
day once instruction form is in ILCU the day before
Central Treasury Trust
Key Changes - Instruction Form
• Combines Lodgement, Withdrawal & Transfer instruction forms
• New books of instruction forms will be sent to credit unions this
week. Must be used from May 18th onwards
• Must be received by ILCU by close of business on day before
dealing (by post or fax)
• NB. If form is not sent, NT cannot process the lodgement,
withdrawal or transfer
• NB. If form is received late, your instruction will not be dealt the
next day and will be held over until following day
Central Treasury Trust
Key Changes - Contract Notes
• Sent by Northern Trust to Credit Unions on dealing day
• Provides details of the lodgement or withdrawals and units
bought/ sold
• Audit trail back to CIM statements at month end
• EXAMPLE
Central Treasury Trust
Key Changes - CIM Statements
• Statements have been re-designed
• Looks more like a bank statement with debits and credits
• The Ongoing Fund section will be replaced by 2 new sections:
1.Monthly Cash Statement &
2.Monthly Unit Transaction Statement
Central Treasury Trust
CIM statement – Monthly statement sample
CIM0000: Test Credit Union Limited
Monthly Statement for Fund: Central Treasury Trust
Period: 1-May-06 to 31-May-06
Central Treasury Managed Fund
Date
Transactions
1-May-06
Opening Balance
Debit
Eur
Lodgements
(see transaction statement for breakdown of lodgements)
Withdrawals
(see transaction statement for breakdown of withdrawals)
Return for May
31-May-06
Breakdown:
Accrued Income
Gain/(loss) on withdrawals during the month
Change in gain/(loss) on value of month end holding
Total return for May
Return on the fund since inception: 2.90%
5,500,000.00
2,350,000.00
Balance
Eur
0.00
5,500,000.00
3,150,000.00
3,061.92
Closing Balance
Return for May:
Credit
Eur
3,153,061.92
3,153,061.92
3,061.92
2.90%
2,096.91
393.27
571.74
3,061.92
Central Treasury Trust
Outstanding Documentation
Credit Union Re-investment Mandate – Sent out 25th April
• Currently, coupons & maturing amounts are automatically
invested into the Ongoing Fund
• Post conversion, they will be invested in CTT on receipt of
mandate
• Completed mandates must be returned a.s.a.p.
CTT Conversion forms• Conversion forms returned from now converted late June
• Currently 73% have transferred over
ILCU Mandate - Sent out in March 06
• Includes provision for using faxed instructions
• Completed mandates should be returned a.s.a.p.
• Only 50% received back so far
Central Treasury Trust
Summary
• Proactive move by ILCU/Credit Unions
• In line with Global Standards- successfully introduced to Credit
Unions in the United States, Canada & Australia
• Monitored & authorised by Financial Regulator
• Monitored by Independent Trustee
• Professionally Managed Diversified Portfolio
• Improved investment opportunities and wider choice
Trustee (Authorised Investments) Order Update
• Registrar formally commenced review August 05
• ILCU held regional consultation meetings Sept 05
• ILCU sent submission to DOF November 05
• ILCU has held 2 meetings with each of
• Department of Finance
• Registrar of Credit Unions
• CUAC
• Changes made to Registrars initial document to date not
sufficient
Central Treasury Trust
• Q&A Session