Queensland Treasury Corporation Amendment Regulation (No. 1) 1996 (Qld)

Queensland Subordinate Legislation 1996 No. 148 Queensland Treasury Corporation Act 1988 QUEENSLAND TREASURY CORPORATION AMENDMENT REGULATION (No. 1) 1996 TABLE OF PROVISIONS Section Page 1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2 Commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 Regulation amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4 Replacement of pt 3 (Performance dividend and attributed amounts) . . . . 3 PART 3—PERFORMANCE DIVIDEND AND ATTRIBUTED AMOUNTS Division 1—Interpretation 32 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 33 Meaning of “benchmark portfolio” . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 34 Meaning of “daily pool yield” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 35 Meaning of “net value” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 36 Meaning of “quarterly borrowing margin” . . . . . . . . . . . . . . . . . . . . . 6 37 Meaning of “yield on the pool” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 38 Prescription of corporation accounts . . . . . . . . . . . . . . . . . . . . . . . . . 7 39 Prescription of periods—Act, ss 19A(2) and 19B(3) . . . . . . . . . . . . 7 40 How to round to a decimal place . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Division 2—Performance dividend 41 Total amount of performance dividend for a financial year . . . . . . . 8 42 Performance dividend for pools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 43 Performance dividend for special arrangements . . . . . . . . . . . . . . . . 9

2 Queensland Treasury Corporation Amendment No. 148, 1996 (No. 1) 44 Payment of performance dividend . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Division 3—Attributed amounts 45 Calculation of attributed amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 46 Payment of attributed amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 5 Replacement of sch (Notional stock) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 SCHEDULE 1 NOTIONAL LOANS SCHEDULE 2 BENCHMARK PORTFOLIO FOR FLOATING RATE DEBT POOL

s1 3 s4 Queensland Treasury Corporation Amendment No. 148, 1996 (No. 1) ˙ Short title 1. This regulation may be cited as the Queensland Treasury Corporation Amendment Regulation (No. 1) 1996 . ˙ Commencement 2. This regulation commences on 28 June 1996. ˙ Regulation amended 3. This regulation amends the Queensland Treasury Corporation Regulation 1989 . ˙ Replacement of pt 3 (Performance dividend and attributed amounts) 4. Part 3— omit, insert— ‘ PART 3—PERFORMANCE DIVIDEND AND ATTRIBUTED AMOUNTS ‘ Division 1—Interpretation ˙ ‘ Definitions ‘ 32. In this part— “benchmark portfolio” , for the floating rate debt pool, is the notional portfolio made up of relevant stock with the weighting stated in schedule 2. “benchmark portfolio” , for a pool other than the floating rate debt pool, see section 33. “central financing authority” means any of the following— (a) New South Wales Treasury Corporation; (b) South Australian Government Financing Authority;

s4 4 s4 Queensland Treasury Corporation Amendment No. 148, 1996 (No. 1) (c) Tasmanian Public Finance Corporation; (d) Treasury Corporation of Victoria; (e) Western Australian Treasury Corporation. “daily pool yield” see section 34. “dividend percentage” see section 42(2). “duration” is the weighted average of the term of each cashflow of a stock or portfolio, where the term is weighted by the ratio of the present value of the cashflow divided by the sum of the net present value of all cashflows. “financial quarter” means the 3 successive months of a financial year that end on 30 September, 31 December, 31 March and 30 June. “market closing” is the time when daily trading closes on the Sydney Futures Exchange. “market rates” are the traded yields on stock in the financial market. “net value” see section 35. “notional loan” , for a pool mentioned in schedule 1, column 1, is a loan for the term, with the repayments and at the interest rate mentioned in columns 2, 3 and 4 respectively for the pool. “notional portfolio” is— (a) for a central financing authority, a portfolio of notional stock; (b) for the corporation, a portfolio of relevant stock. “notional stock” is the theoretical stock for each central financing authority that would be the same, other than for yield, as stock stated by the corporation to be relevant stock. “pool” means a pool mentioned in section 38. “quarterly borrowing margin” see section 36. “relevant stock ”, for a pool, is the stock stated by the corporation to be used for calculating the benchmark portfolio. “special arrangement” means a financial arrangement under section 19(1) of the Act that is not associated with a pool.

s4 5 s4 Queensland Treasury Corporation Amendment No. 148, 1996 (No. 1) “weighted average dividend percentage” , for a special arrangement, see section 43(2). “yield on the pool” see section 37. ˙ ‘ Meaning of “benchmark portfolio” ‘ 33.(1) The “benchmark portfolio” , for a pool (other than the floating rate debt pool), is a notional portfolio made up of weighting of both the relevant stocks and the floating rate debt pool benchmark portfolio. ‘ (2) The weighting of relevant stocks and the floating rate debt pool benchmark portfolio must be calculated using a mathematical algorithm decided by the corporation. ‘ (3) A calculation under subsection (2) must ensure, as far as practicable, that— (a) the duration of the benchmark portfolio is the same as the duration of the notional loan; and (b) the cashflow profile of the benchmark portfolio is closely matched to the cashflow profile of the notional loan. ˙ ‘ Meaning of “daily pool yield” ‘ 34. The “daily pool yield” , for a pool, is calculated using the following formula— MV 2 – MV 1 x 100% MV 1 where— “MV 1 ” is the net value of the pool at market closing on the day before the day for which the daily pool yield is being calculated. “MV 2 ” is the net value of the pool at market closing on the day for which the daily pool yield is being calculated after adjustment to remove the effect of changes in net borrowings from the pool between market closing on the day before and market closing on the day for which the daily pool yield is being calculated.

s4 6 s4 Queensland Treasury Corporation Amendment No. 148, 1996 (No. 1) ˙ ‘ Meaning of “net value” ‘35.(1) The “net value” , of a pool for a day, means the amount that represents the market value of the pool’s assets at market closing less the market value of its liabilities at market closing. ‘ (2) The market values of the pool’s assets and liabilities for a day are the values decided for the day by the corporation having regard to the market rates on the stocks forming the pool. ‘ (3) For subsection (1), the pool’s assets do not include any outstanding amounts. ˙ ‘ Meaning of “quarterly borrowing margin” ‘ 36.(1) The “quarterly borrowing margin” , for a pool, is the amount calculated by subtracting the yield on the benchmark portfolio from the simple average of the yields of the notional portfolios of all central financing authorities. ‘ (2) For calculating the margin the corporation must, at the end of each financial quarter— (a) calculate a benchmark portfolio for the pool; and (b) construct notional portfolios for each central financing authority, to reflect the benchmark portfolio, as if each central financing authority had issued notional stock of amounts equal to the amounts of relevant stock calculated by the corporation to establish the benchmark portfolio; and (c) calculate the yield for each notional portfolio mentioned in paragraph (b) and each benchmark portfolio mentioned in paragraph (a). ‘ (3) In calculating the yield under subsection 2(c), the corporation must have regard to the market rates for the central financing authorities’ stocks that are equal or similar to the notional stock.

s4 7 s4 Queensland Treasury Corporation Amendment No. 148, 1996 (No. 1) ˙ ‘ Meaning of “yield on the pool” ‘ 37. The “yield on the pool” , for a financial year, is obtained by compounding the daily pool yields over the financial year. ˙ ‘ Prescription of corporation accounts ‘ 38. The corporation accounts known by the following names are prescribed— (a) the floating rate debt pool; (b) the 3 year debt pool; (c) the 6 year debt pool; (d) the 9 year debt pool; (e) the 12 year debt pool. ˙ ‘ Prescription of periods—Act, ss 19A(2) and 19B(3) ‘ 39. For sections 19A(2) and 19B(3) of the Act, each financial year is a prescribed period. ˙ ‘ How to round to a decimal place ‘ 40.(1) This section applies if a percentage must be rounded to a particular decimal place. ‘ (2) If the number immediately after the place is less than 5, the number at the place is not changed. ‘ (3) If the number immediately after the place is 5 or more, the number at the place is rounded up to the next whole number.

s4 8 s4 Queensland Treasury Corporation Amendment No. 148, 1996 (No. 1) ‘ Division 2—Performance dividend ˙ ‘ Total amount of performance dividend for a financial year ‘ 41. The amount of the performance dividend payable by the corporation for a financial year is the total of— (a) the performance dividend payable for each pool for the financial year; and (b) the performance dividend payable for all special arrangements for the financial year. ˙ ‘ Performance dividend for pools ‘ 42.(1) For section 19A(2) of the Act, the performance dividend payable for a financial year for a pool is the amount equal to the sum of the increase in the net value of the pool on the last day of the financial year that would result if the daily pool yields for the pool were increased by the dividend percentage. ‘ (2) The “dividend percentage” , rounded to the second decimal place, for a pool for a financial year is calculated using the following formula— where— BM + (BPY-APY) 2 “BM” means the simple average, rounded to the fourth decimal place, calculated by the corporation of the quarterly borrowing margins for the financial year. “BPY” means the yield on the benchmark portfolio for the financial year as calculated by the corporation. “APY” means the yield on the pool for the financial year as calculated by the corporation. ‘ (3) If the dividend percentage calculated under subsection (2) is less than 0, the dividend percentage is taken to be 0.

s4 9 s4 Queensland Treasury Corporation Amendment No. 148, 1996 (No. 1) ˙ ‘ Performance dividend for special arrangements ‘ 43.(1) The performance dividend payable for a financial year for a special arrangement is the amount calculated by multiplying the average of the outstanding amounts under the special arrangement for the financial year by the weighted average dividend percentage. ‘ (2) The “weighted average dividend percentage” , rounded to the second decimal point, for a special arrangement is calculated using the following formula— B C where— “B” means the total of the results obtained by multiplying the dividend percentage for each pool by the net value of the pool on the last day of the financial year. “C” means the total of all the net values of the pools on the last day of the financial year. ˙ ‘ Payment of performance dividend ‘ 44.(1) As soon as practicable after the end of a financial year for which a performance dividend is payable, the corporation must calculate the amount of the performance dividend payable by it and give notice of the amount to the Treasurer. ‘ (2) The performance dividend is payable 14 days after the day notice is given to the Treasurer under subsection (1). ‘ (3) If the corporation has not given notice of the amount within 28 days after the end of the financial year to which the performance dividend relates, the corporation must give to the Treasurer its reasons for not giving notice of the amount.

s 5 10 s 5 Queensland Treasury Corporation Amendment No. 148, 1996 (No. 1) ‘ Division 3—Attributed amounts ˙ ‘ Calculation of attributed amounts ‘ 45. The attributed amount for a statutory body or other person because of a financial arrangement is calculated as follows— (a) if the financial arrangement is associated with a pool—the attributed amount is the increase in the outstanding amount on the last day of the financial year that would result if the daily pool yields were increased by the dividend percentage for the pool; (b) if the financial arrangement is a special arrangement—the attributed amount is calculated by applying the weighted average dividend percentage to the average of the outstanding amounts under the arrangement for the financial year. ˙ ‘ Payment of attributed amount ‘ 46.(1) As soon as practicable after the end of a financial year for which an attributed amount is payable, the corporation must calculate the attributed amount payable for each financial arrangement and give notice of the amount to the appropriate statutory body or other person. ‘ (2) The attributed amount is payable 14 days after the day notice is given to the statutory body or other person.’. ˙ Replacement of sch (Notional stock) 5. Schedule— omit, insert—

s 5 11 s 5 Queensland Treasury Corporation Amendment No. 148, 1996 (No. 1) ‘ SCHEDULE 1 ‘ NOTIONAL LOANS section 32 Column 1 Pool 3 year debt pool Column 2 Term of loan 3 year 6 year debt pool 6 years 9 year debt pool 9 years 12 year debt 12 years pool Column 3 Repayment of loan 1 2 e qu a l repayments 2 4 e qu a l repayments 3 6 e qu a l repayments 4 8 e qu a l repayments Column 4 Interest rate of loan Set daily from market rates Set daily from market rates Set daily from market rates Set daily from market rates

s 5 12 s 5 Queensland Treasury Corporation Amendment No. 148, 1996 (No. 1) ‘ SCHEDULE 2 ‘ BENCHMARK PORTFOLIO FOR FLOATING RATE DEBT POOL section 32 Relevant stock Weighting 11 am cash 25% 30 day bank bill 25% 60 day bank bill 25% 90 day bank bill 20% 180 day bank bill 5%’. ENDNOTES 1. Made by the Governor in Council on 27 June 1996. 2. Notified in the gazette on 28 June 1996. 3. Laid before the Legislative Assembly on . . . 4. The administering agency is the Treasury Department. © State of Queensland 1996