Interpretation

1   In this regulation:

"Act" means the Public Sector Pension Plans Act;

"chief investment officer" means the person appointed under section 20 (1) (a) of the Act as the chief investment officer of the investment management corporation;

"investment management corporation" means the British Columbia Investment Management Corporation established under section 16 of the Act;

"opening date" means a date when funds may purchase or realize units in a portfolio;

"participating fund" means a fund from which money or securities are used to purchase units in a portfolio;

"portfolio" means a pooled investment portfolio established under section 2 or continued under section 3;

"unit" means a unit of participation referred to in section 5, and includes a part of a unit.

Establishment of pooled investment portfolios

2   The investment management corporation may establish one or more portfolios.

Continuation of pooled investment portfolios

3   Each portfolio established under B.C. Reg. 84/86 is continued under this regulation.

Management of pooled investment portfolios

4   (1) All the assets of a portfolio are held in trust by the investment management corporation.

(2) Subject to the Act, the chief investment officer is responsible for investing money of a portfolio in categories of investment the chief investment officer considers desirable and for managing and controlling the portfolio.

(3) The investments of a portfolio must be identified separately from other property of the investment management corporation, with each investment recorded to show clearly the portfolio to which the investment belongs.

(4) Ownership in any asset in a portfolio must not be attributed to a participating fund.

Units of participation

5   (1) A portfolio must be divided into units of participation, that on any given day are of equal value, and the proportionate interest to be attributed to each participating fund must be expressed by the number of units allocated to it.

(2) The value of each full unit in a portfolio is

(a) on establishment of the portfolio, $1 million, and

(b) on any subsequent date, the value determined by the chief investment officer.

(3) On establishment of a portfolio, the appropriate number of units must be allocated to each participating fund proportionate to its investment in the portfolio.

(4) Subject to section 10 (4.1), the cost of a unit in a portfolio is the value of the units on the date of purchase.

(5) A participating fund may hold a fraction of a unit calculated to 9 decimal places.

[am. B.C. Reg. 218/2011, s. 1.]

Purchase and realization of units

6   (1) A unit must be purchased or realized only on an opening date.

(2) The chief investment officer is authorized to set opening dates for each portfolio.

(3) The holder of units in a portfolio may realize units only on an opening date for the portfolio on the basis of the value of the units on that date.

Participation records

7   The chief investment officer must cause records to be maintained for each participating fund showing

(a) the date of admission of money to the portfolio, the number of units allotted and the value at which each unit is allotted,

(b) the date of each withdrawal, the number of units realized and the amount paid on redemption,

(c) the number of units currently held, and

(d) the unit entitlement of the participating fund on termination of the portfolio.

Evidence of participation

8   Unit holdings in a portfolio must be evidenced by monthly statements of account issued to each participant in the portfolio.

Opening dates

9   (1) The chief investment officer must determine the value, on the appropriate opening date, of

(a) each portfolio, and

(b) the units of a portfolio.

(2) In making a determination under subsection (1), the chief investment officer must have regard to external sources, and apply fair, equitable and consistent principles of valuation to each security or investment by the use of valuation methods accepted and applied in accordance with good accounting practices for that type of security or investment.

(3) The chief investment officer may arrange for a special opening of a portfolio without making the determination referred to in subsection (1) if all participating funds in the portfolio are treated fairly and equitably.

Annual calculation and attribution of income and net taxable capital gain

10   (1) On the last opening date of the calendar year, the aggregate of the income and net realized taxable capital gains of each portfolio for that year as determined under the Income Tax Act (Canada) less any income and net realized taxable capital gains already paid to the participating funds for that year are payable to each participating fund in proportion to its participation in the portfolio.

(2) A participating fund, on demand by December 15 in the same calendar year, will receive the payment to which it is entitled under subsection (1).

(3) A payment to which a participating fund is entitled under subsection (1) that has not otherwise been paid pursuant to a demand for payment under subsection (2) must be paid by the issuance of additional units having value equal to the amount of the payment.

(4) Unless the investment management corporation determines otherwise, immediately after the issuance of additional units under subsection (3), the additional units must be consolidated with the other units held by the participating fund so that the participating fund will hold, after the consolidation, the same number of units as the participating fund held before the issuance of the additional units.

(4.1) If a consolidation occurs under subsection (4), the carrying costs of the units held by a participating fund must be increased by the value, before consolidation, of the additional units issued to the participating fund.

(5) If a participating fund has made a demand for payment under subsection (2), the number of its units of participation, valued as of the last opening date of the calendar year, must be reduced proportionally to reflect the value of the payment.

[am. B.C. Reg. 218/2011, s. 2.]

Investment of income and other proceeds

11   Subject to section 10, the chief investment officer may

(a) distribute any net income, net capital gains or other proceeds received by a portfolio to each participating fund in proportion to its participation in the portfolio, or

(b) invest any net income, net capital gains or other proceeds received by a portfolio in that portfolio.

Accounting records and audit

12   (1) A complete set of accounting records must be maintained for each portfolio and the records must clearly distinguish items of principal from items of income.

(2) For the purposes of audit, participation reports and all accounts and records pertaining to each portfolio are accounts and records of the investment management corporation.

(3) Annual financial statements must be issued for each portfolio, other than a portfolio of which all the units are held beneficially by the same person.

(4) The financial statements must be audited by an auditor appointed by the investment management corporation.

(5) The investment management corporation must make available without charge a copy of the annual financial statements together with the auditor's report on them to the unit holders of record as of the fiscal year end.

(6) Participation reports and all accounts and records of a portfolio for the period subsequent to the last audit are open for inspection by a holder of a unit.

[am. B.C. Reg. 252/2003.]

Realization of units

13   The investment management corporation is authorized to make rules governing the realization of units for a portfolio.

Termination of a pooled investment portfolio

14   The chief investment officer may terminate a portfolio and distribute to the unit holders the net proceeds realized.