The Public Trustee's long-term view and prudent approach to money management has resulted in an investment performance that is steady and appropriate to the current economic climate.
In the 2022-2023 financial year, the Public Trustee Common Account, which operates as a cash management account for the day-to-day expenses of clients, achieved a net return of 3.84% on investment with a balance of $395 million at 30 June 2023.
The Public Trustee also manages the individual investment of clients' larger value trusts by supervising individual portfolios for capital growth.
Public Trustee Investment Funds
Three investment funds are used to invest clients' money for a long-term outlook and are designed to allow for more flexibility to meet different client needs.
One of Australia's leading fund managers assists the Public Trustee to manage the funds, which are:
Conservative Fund
Money is invested in a mix of 15% to 55% growth assets to offset inflation and 45% to 85% income-producing assets. The fund invests in mostly defensive oriented assets including fixed interest and cash. 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 Fund
Money is invested in a mix of 55% to 95% growth assets to offset inflation and 5% to 45% income-producing assets. The fund invests in mainly growth-oriented assets, including shares, real assets, and alternatives. The fund expects to have a moderate level of fluctuation in market values, and in the long term the capital growth component provides a rate of return higher than the Conservative Fund.
Growth Plus Fund
Money is invested in a mix of 70% to 100% growth assets and 0% to 30% defensive assets. The fund invests primarily in growth assets, including shares, real assets, and alternatives. While the fund expects to fluctuate more in market value than other funds, in the long term, the capital growth component is expected to provide a total rate of return higher than the Growth or Conservative Funds.
