Public Trustee Investment Regulation

(Consolidated up to 38/2026) ALBERTA REGULATION 24/2006 Public Trustee Act PUBLIC TRUSTEE INVESTMENT REGULATION Table of Contents 1 Definitions 2 Interest rate objective 3 Interest on guaranteed accounts 4 Investment standards 5 Valuation of assets 6 Transfers from common fund to general revenue fund 7 Separate investments 9 Amends AR 241/2004 Definitions 1 In this Regulation, (a) “average” means the mean average; (b) “daily interest rate” is the number by which the closing balance in a client’s guaranteed account on a particular day is multiplied to determine the interest credited to the client for that day; (c) “fiscal year” means April 1 to March 31; (d) “reference rate” means the rate determined in accordance with section 2(1). AR 24/2006 s1;259/2007 Interest rate objective 2 (1) For the purpose of this section, (a) the reference instrument is the Government of Canada 5‑year benchmark bond; (b) the reference rate on a particular day is the average of the effective annual rate on the reference instrument for each day during the immediately preceding 5‑year period for which the Bank of Canada publishes the yield on the reference instrument; (c) the effective annual rate on the reference instrument for a particular day is the value of R in the equation where Y is the yield (expressed as a decimal fraction) for that day on the reference instrument, as published by the Bank of Canada in CANSIM series V39053; (d) the average effective annual interest rate on guaranteed accounts during a fiscal year is the value of R in the equation where D is the average daily interest rate (expressed as a decimal fraction) during that fiscal year, and N is the number of days in the fiscal year. (2) The objective for the purpose of this Regulation is that the average effective annual interest rate on guaranteed accounts during a fiscal year will be at least 90% of the average of the reference rate for each day during the fiscal year. (3) The Public Trustee shall publish the following information in the Alberta Gazette within one month after the end of each fiscal year: (a) the average effective annual interest rate on guaranteed accounts during the fiscal year; (b) the average reference rate during the fiscal year; (c) the ratio (expressed as a percentage, rounded to the first decimal place) of the average referred to in clause (a) to the average referred to in clause (b). Interest on guaranteed accounts 3 (1) In setting the interest rate on guaranteed accounts, the Public Trustee must consider the objective referred to in section 2(2) and may consider any other matter that in the opinion of the Public Trustee is appropriate to consider. (2) The Public Trustee shall (a) calculate interest based on the closing daily balance on each guaranteed account, and (b) credit interest to guaranteed accounts on the last day of each month, except where interest is credited to a guaranteed account earlier in a month on a final distribution. (3) Subject to subsection (4), the Public Trustee may change the interest rate on guaranteed accounts at any time. (4) The Public Trustee shall give notice of any change in the interest rate on guaranteed accounts by publishing a notice in the Alberta Gazette before the effective date of the change. AR 24/2006 s3;259/2007 Investment standards 4 For the purpose of section 36 of the Act, the Public Trustee (a) shall consider (i) the objective set out in section 2(2), (ii) the objective of managing the risk to the Crown arising from its guarantee of the amount outstanding on guaranteed accounts, (iii) opportunities for prudent diversification of common fund investments that may be provided by a surplus of common fund assets over guaranteed account liabilities, and (iv) anticipated cash flow requirements relating to the common fund and guaranteed accounts, and (b) may consider any other matter that the Public Trustee considers relevant. Valuation of assets 5 For the purposes of this Regulation and section 35(2) of the Act, common fund assets must be valued in accordance with Canadian generally accepted accounting principles. Transfers from common fund to general revenue fund 6 (1) For the purpose of section 32(4) of the Act, the Public Trustee may in any fiscal year transfer from the common fund to the General Revenue Fund an amount not exceeding the value of the common fund’s assets at the beginning of the fiscal year, multiplied by the multiplier for the fiscal year, as determined under subsection (2). (2) The multiplier is determined by calculating the ratio (expressed as a percentage, rounded to the first decimal place) of A to B where A is the average effective annual interest rate on guaranteed accounts during the preceding fiscal year, as calculated in accordance with section 2(1)(d); B is the average of the reference rate for each day during the preceding fiscal year, and by applying that ratio in accordance with the following Table: Table If the ratio is at least equal to the percentage in column 1 and is not greater than the percentage is column 2, the multiplier is the number in column 3. Column 1 Column 2 Column 3 ‑ 89.9% 0.000 90.0% 92.4% 0.003 92.5% 94.9% 0.006 95.0% 97.4% 0.009 97.5% 99.9% 0.012 100% ‑ 0.015 (3) Subject to the maximum amount determined under subsection (1), in determining the amount to be transferred from the common fund to the General Revenue Fund in a fiscal year, the Public Trustee (a) must consider the long‑term capacity of the common fund to support payment of interest on guaranteed accounts in accordance with the objective described in section 2(2), and the anticipated effect of transfers on that capacity, and (b) may consider any other matter that the Public Trustee considers relevant. (4) Repealed AR 38/2026 s2. AR 24/2006 s6;38/2026 Separate investments 7 For the purpose of section 37(3) of the Act, the Public Trustee may make a separate investment for a client if, in the opinion of the Public Trustee, it is in the client’s best interest. AR 24/2006 s7;227/2008;38/2026 8 Repealed AR 202/2015 s2. 9 (This section amends the Public Trustee General Regulation (AR 241/2004); the amendment has been incorporated into that Regulation.)