NSW Trustee and Guardian's Investment Profile
NSW Trustee and Guardian offers clients a simple and flexible facility to place funds with access to fixed interest or growth portfolios. The NSW Trustee and Guardian (formerly Public Trustee NSW) currently has in excess of $1.3 billion assets under management and offers a low risk opportunity for investment growth.
The NSW Trustee and Guardian has two Common Fund Portfolios:
1. The Common Fund Primary Portfolio
The Primary Portfolio invests in fixed interest securities, such as bonds, commercial mortgages, and term deposits, which are generally held to maturity. The Portfolio has an objective of providing an income stream and return of the original capital sum (capital guaranteed).
The bond portfolio is managed by New South Wales Treasury Corporation (TCorp).
As at 30 June 2009, over $1.2 billion was held in the Primary Portfolio. The "at call" interest rates for Client funds in this Portfolio remained high. This was achieved by strong book returns and earnings on reserves.
Those longer term matters, in which the Public Trustee stood as trustee, received 7.2% decreasing from February 2009 to 7%, and again in April to 6.75% which was the rate at 30 June 2009. There was a further rate adjustment to 6.5% in July 2009.
The return on the investments is paid to the trusts and estates as interest calculated on the trusts' daily balances.
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Current Primary Portfolio Interest Rate is : 6.50%
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2. The Common Fund Growth Portfolio
The Growth Portfolio has been investing in the Indexed Australian Shares Sector Trust managed by TCorp. which in turn invests in the share market. Following advice, the Growth Portfolio began investing in the Indexed International Shares Sector Trust from 1 August, 2008 for more diversification with the eventual target being 70% Indexed Australian Shares and 30% Indexed International Shares. As at 30 June, 2009 the ratio was 81.3% Indexed Australian Shares and 18.7% Indexed International Shares.
As at 30 June, 2009 there were over 246 million units on issue.
The portfolio has the objective of achieving capital growth over the medium to long term. The units in the Growth Portfolio are not capital guaranteed. The price of the units fluctuates daily, depending on the market value of the shares held in the two sector trusts.
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Growth Portfolio 2008/2009 Total Return: -22.45%
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Total Return in 2008/09
The Portfolio had a return of -22.45% for the year (-13.80% for 2007/08). Until the target diversification of 70% Indexed Australian Shares and 30% Indexed International Shares is reached there is no benchmark available.
For further information please contact John Hong at NSW Trustee and Guardian on 1300 553 731 or corporateservices@pt.nsw.gov.au