Public Trustee NSW Common Fund

All money received from an estate, trust or power of attorney forms part of the Public
Trustee’s Common Fund. This earns interest calculated on daily balances and is credited to
each account in June and December each year. You will find that interest earned from the Common Fund can considerably offset the Public Trustee’s charges.

Depending on your instructions, assessed needs and the amount of money you place with the Public Trustee, the money will be invested in one or more of the Public Trustee’s Common Fund portfolios: the Primary Portfolio or the Growth Portfolio.

All funds initially received on your behalf are automatically placed in the Primary Portfolio. This Portfolio is capital guaranteed, meaning that every dollar invested will be returned to you. In addition, you will also receive interest on your money, at rates regularly reviewed by the Public Trustee. If your interest remains in the Portfolio, its return to you is also capital guaranteed and it in turn attracts further interest.

The Primary Portfolio invests in cash and fixed interest securities, such as bonds, commercial mortgages, and term deposits, which are generally held to maturity. Market price fluctuations pose minimal risk with a hold to maturity strategy, as the face value will always be then due and payable. In the unlikely event that the issuer of the bonds, or borrower, cannot pay back the amount on maturity, Public Trustee NSW has substantial reserves to protect the Portfolio and ensure return of your money.

Our ongoing commitment is to act in the best interests of our clients and to protect those interests on behalf of our clients.