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Ontario Immigrant Investment Corporation (OIIC) Annual Report 2011 - 2012

Ministry of Economic Development and Innovation

The Corporation and its Mandate

a) Establishment of the Corporation

The Ontario Immigrant Investor Corporation (OIIC) was incorporated as an operating agency of the Ontario government on April 30, 1999. On June 22, 1999, the Corporation was accepted by the federal government as an approved fund under the Immigrant Investor Program (IIP).

b) Primary Purpose
The OIIC was established to act as the Government of Ontario’s vehicle for receiving and investing Ontario’s share of immigrant investor funds, as required by the federal government under the federal Immigrant Investor Program (IIP). The OIIC’s principal responsibility is to received and invest Ontario’s share of funds from immigrant investors and to pay back immigrant investors upon the maturity of their investment in five years.

The broad goal of the OIIC is to create or continue employment in Ontario in order to foster the development of a strong and viable economy, consistent with the requirements of the regulations under the federal Immigration and Refugee Protection Act (IRPA).

c) Governance and Management
The Minister of Economic Development and Innovation (MEDI) was responsible for directing the OIIC through the Chair of the Board of Directors during fiscal year 2011 - 2012. The OIIC reported to the Minister of Economic Development and Innovation through the Chair of the Board of Directors.

Ontario Regulation 279/99, made under the Development Corporations Act, (the “OIIC Regulation”) stipulates that there must be at least three members of the Board of Directors, and that these members are to be appointed by the Lieutenant Governor in Council. There were five directors serving at fiscal year end March 31, 2012:

Appointment dates, as well as length of each director’s term are provided in the table below.

Name Appointment Date Term
David Clifford May 12, 2010 July 27, 2013
Susan Guinn May 17, 2010 July 27, 2013
Tony Rockingham May 12, 2010 May 11, 2013
Hope Jaglowitz July 28, 2010 July 27, 2013
Cameron Sinclair February 8, 2012 February 8, 2015

Four executive officers were carrying out the OIIC’s responsibilities at fiscal year end March 31, 2012:

Officers hold office until successors are appointed. Appointment dates for the four executive officers named above are provided in the table below.

Name Position Appointment Date
Guy Poirier President July 19, 2010
Robert Burns Chief Financial Officer July 19, 2010
Sabrina Parnham General Manager October 1, 2010
Leila Dabir Secretary October 28, 2011

Program Operations and Performance:

Historically, Ontario has always taken a prudent approach to investment given that the province is obligated to repay funds to the immigrant investors. Accordingly, similar to other participating provinces, Ontario had previously only utilized the interest accrued on the capital to invest in economic development and job creation.

With the September 29, 2010 approval of a new investment strategy (the Statement of Investment Policies and Procedures - SIPP), a significant portion of the principal was also being utilized. This investment strategy is consistent with OIIC’s goals to create and/or continue employment in Ontario in order to foster the development of a strong and viable economy, as mandated by the regulations under the Federal Immigration and Refugee Protection Act.

In order to implement the SIPP, a Credit Facility / Loan Agreement between the OIIC and Ontario Infrastructure and Lands Corporation (OILC) was signed on January 24, 2011, stipulating the funds received from OIIC will be used towards infrastructure projects and job creation.

Also included in the Loan agreement are the repayment terms and the reporting requirements. The OILC will provide information on a quarterly basis on the projects funded through the advances received from OIIC. This information will be included in the quarterly reports and submitted to CIC as per the IIP reporting requirements.

For the fiscal year April 1, 2011 to March 31, 2012, OIIC received $195.4M in IIP funds from the federal government. OIIC loaned $182.2M of these funds to OILC which supported 43 economic development projects and created 12,497 jobs. This represents 93% of IIP allocations invested in economic development and job creation projects, significantly exceeding Ontario’s obligations under the federal program.

These infrastructure projects will promote economic growth and job creation by building and maintaining healthy infrastructure/roadways, supporting public safety and environmental protection.

Below are examples of OILC infra-structure projects funded in 2011-2012:

Recipient Business/Entity Name: Description of Use of Funds Forecasted Projection of the Number of FTE's to be created
MaRS Phase 2 New building construction 472
The County of Brant Road construction and repair 151
The Regional Municipality of Niagara Municipal recreation infrastructure upgrades 367
The Regional Municipality of York Road construction and repair 327
St. Joseph’s Health Centre-Guelph Building construction 87
The City of London Sewer replacement and upgrade 720

Prior to February 2011, the Corporation invested all of its allocations in fixed Income securities issued by the Province of Ontario, maturing within five years. In general, zero-coupon bonds were purchased to align maturity dates to the Provincial Allocations repayment schedule. As at March 31, 2012, these fixed income securities had a weighted-average yield of 3.45% (2011 -3.67%).

During this fiscal year, the OIIC continued to use a portion of funds to support previous funding commitments to the former Ministry of Research and Innovation, via the Innovation Demonstration Fund (IDF), in its efforts to assist innovative companies to develop emerging technologies.

Financial Operations and Performance:

During the fiscal year ended 2011-2012, the OIIC received Provincial Allocations representing Ontario’s share of payments made by 1,273 immigrant investors under the Immigrant Investor Program. These funds were deposited into the Corporation’s interest bearing account by the federal government, and then transferred to the Ontario Financing Authority (OFA) for investment. The investments included loans to OILC, fixed income securities issued by the Province of Ontario (maturing between one and five years) and investments to IDF.

One refund was issued to an immigrant investor this fiscal year and the Provincial Allocations from 490 immigrant investors matured and their investments were repaid.

A copy of the audited financial statements of the OIIC for the year ended March 31, 2012 follows.