Public Trustee Investment Funds

On July 1 2009, the Public Trustee implemented four new investment funds. While the Common Account is used for the day to day expenses of clients, the four new investment funds are used to invest the money of clients with a long-term outlook. The new funds have been designed to allow for more flexibility in meeting different client objectives. Existing clients who had external investments with the Public Trustee prior to 1 July 2009 will only have their money transferred into the new funds after analysis to determine the benefit for each individual client.

One of Australia's leading fund managers, Mercer, has been appointed to assist the Public Trustee manage the Funds. The four Funds are:

• Cash
  Money is invested to earn income but there is no capital growth to offset inflation. The investments include cash and short term income-bearing securities. They are usually called income-producing assets. The Fund expects to have a very low level of fluctuation in market values, with a corresponding rate of return.
  
  
• Conservative
  Money is invested in a mix of 30% growth assets to offset inflation and 70% income-producing assets. These include Australian and overseas shares, Australian and overseas property, infrastructure, Australian and overseas fixed interest, cash and alternative assets. The Fund expects to have a low level of fluctuation in market values, with mostly income, and some capital growth, forming the rate of return.
  
  
• Growth
  Money is invested in a mix of 70% growth assets to offset inflation and 30% income-producing assets. These include Australian and overseas shares, Australian and overseas property, infrastructure, Australian and overseas fixed interest, cash and alternative assets. The Fund expects to have a moderate level of fluctuation in market values, and in the long term the capital growth component providing a total rate of return higher than the Cash or Conservative Funds.
  
  
• Growth Plus
  Money is invested in growth assets to offset inflation. These include Australian and overseas shares, Australian and overseas property, infrastructure, and alternative assets. While the Fund expects to fluctuate more in market value than other funds, in the long term it is also expected to produce higher returns from capital growth than the other funds.

Last Updated: 9-Jul-2009

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