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2017-18 Annual Report

 

The Public Trustee

2017-18  Annual Report

 

The Public Trustee

211 Victoria Square Adelaide SA 5000

GPO Box 1338 Adelaide SA 5001

publictrustee@sa.gov.au

Contact phone number 08 8226 0200

Contact email pt.enquiries@sa.gov.au

ISSN:1441-2799 (Print)  1836-263X (Online)

Date presented to Minister:21 September 2018

 

To The Honourable Vickie Chapman MP

Deputy Premier

Attorney-General

This annual report is presented to Parliament to meet the statutory reporting requirements of the Public Trustee Act 1995 and the Public Sector Act 2009 and meets the requirements of Premier and Cabinet Circular PC013 Annual Reporting.

This report is verified to be accurate for the purposes of annual reporting to the Parliament of South Australia.

Submitted on behalf of the Public Trustee by:

Nicolle Rantanen

The Public Trustee (Acting)

20 September 2018

Contents

 Contents

Section A: Reporting required under the Public Sector Act 2009, the Public Sector Regulations 2010 and the Public Finance and Audit Act 1987

Agency purpose or role

Objectives

Key objectives of the Public Trustee and their relationship to Government objectives

Agency programs and initiatives and their effectiveness and efficiency

Legislation administered by the agency

Organisation of the agency

Other agencies related to this agency (within the Attorney-General’s area/s of responsibility)

Employment opportunity programs

Agency performance management and development systems

Work health, safety and return to work programs of the agency and their effectiveness

Work health and safety and return to work performance

Fraud detected in the agency

Strategies implemented to control and prevent fraud

Whistleblowers disclosure

Executive employment in the agency

Consultants

Contractors

Financial performance of the agency

Other information requested by the Attorney-General or other significant issues affecting the agency or reporting pertaining to independent functions

Section B: Reporting required under any other act or regulation

Section C: Reporting of public complaints

Appendix 1: 2017-18 The Public Trustee services

Appendix 2: Audited financial statements 2017-18

Section A: Reporting required under the Public Sector Act 2009, the Public Sector Regulations 2010 and the Public Finance and Audit Act 1987

Agency purpose or role

The office of the Public Trustee was established in 1881 and is constituted under the provisions of the Public Trustee Act 1995. The Public Trustee is a statutory officer pursuant to the Public Trustee Act 1995. The Public Trustee is a body corporate with the powers of a natural person.

The role of the Public Trustee is to provide financial and administrative services to the people of South Australia. The Public Trustee helps those who cannot manage their own affairs, and those who have trusted us to assist them.

Objectives

The Public Trustee’s Strategic Plan includes the following objectives;

People

  • We will be a workplace of choice. Our staff will be engaged in our culture, and feel empowered by leaders to develop their skills and capabilities.

Customer Experience

  • We will engage with our customers to understand their needs, and deliver a consistently high quality service, treating them with empathy and respect.

Continuous Business Improvement

  • Our environment will encourage staff to engage with business improvement ideas and initiatives, to find new ways to work and deliver excellent service to our customers.

Governance & Financial Stability

  • We will be supported by good governance that effectively manages critical risk. Our fees and charges will be competitive, whilst enabling us to meet our agreed fiscal targets.

Key objectives of the Public Trustee and their relationship to Government objectives

Government Objective: Identifying new ways to work and deliver excellent service to the community we serve.
The Public Trustee Key Objective – People
Flexibility and Work-Life Balance

  • Increase the rollout of mobility devices to improve staff flexibility.
  • Restrict meeting times to core hours where possible.
  • Continue staff wellbeing program.

Workload

  • Establish metrics that give facts and details for resource planning.
  • Define timeframes for processes.
  • Consider structure and opportunities to introduce specialist roles/subject matter experts.
  • Adjust delegations as a recognition of staff trust and appropriate task level.

Training

  • Create a structured induction program for customer service staff.
  • Identify key competencies per position.
  • Undertake a skills gap analysis.
  • Determine training needs based on the gap analysis.
  • Build training to match competencies.

Recognition

  • Create an eThanks program (peer and leader recognition).
  • Undertake ongoing personal recognition at all levels.
  • Publish corporate good news stories (to recognise and encourage pride in work).

Communication

  • Create a team leaders forum and interbranch forums to discuss ideas.
  • Ensure that all Branch Managers attend other branch meetings to share information.
  • Create a forum to share personal, non-work achievements, interests, community achievements.
The Public Trustee Key Objective – Continuous Business Improvement
  • Dedicate policy/procedure resources to review and simplify policies and procedures.
  • Investigate options to improve the use of AGD and across-government ICT infrastructure.
  • Create an electronic suggestion box and utilise “great ideas” program to generate ideas from operational staff.
  • Consider opportunities for greater data sharing with other agencies.
  • Review internal and external service standards.
  • Utilise ICT to enable business improvement.
 Government Objective: Commitment to providing better services to South Australians and working to protect the vulnerable.
The Public Trustee Key Objective – Customer Experience
  • Restructure communications with Personal Estates’ customers, including consideration of improved telephone call management.
  • Restructure how cases are managed in Estate Services to remove single point of failure.
  • Improve external agency collaboration by working with Centrelink, registries, Australian Taxation Office, banks, Correctional Services (prisons), Office of the Public Advocate, and South Australian Civil and Administrative Tribunal.
  • Improve information and service delivery at point of initial customer contact.
Government Objective: Effectively manage risk and contribute to a strong economy for South Australia.
The Public Trustee Key Objective – Governance & Financial Sustainability
  • Review Control Self Assessments (internal control process).
  • Review delegations for operational effectiveness and risk.
  • Review fee structure:
    • benchmark to competitors (competitor scan)
    • present options for any proposed changes
    • assess feasibility and cost recovery
    • consider business model for Wills.
  • Develop performance reporting – transparent key performance indicators, relevant items to measure.
  • Complete all audit and Independent Commissioner Against Corruption findings by the due dates.
  • Deliver outcomes in accordance with the Charter and Performance Statement as agreed between the Attorney-General and the Treasurer.

Agency programs and initiatives and their effectiveness and efficiency

Agency Program – Writing Wills & Powers of Attorney

Free Will and power of attorney drafting services are provided for all South Australians who nominate the Public Trustee as their executor, attorney or substitute attorney.
Activity Indicators 2017-18 2016-17
•  New Wills 640 684
•  Revised Wills 956 1055
•  New & revised power of attorney documents 391 456
•  Visits to people in their homes or other facilities to prepare Wills 232 202
Effectiveness/Efficiency Indicators 2017-18 2016-17
•  Customer satisfaction rating out of 5 with Will making services 4.82 4.78
•  Wills customers who would recommend the Public Trustee 94% 93%

 

Agency Program – Deceased Estates & Trusts Administration

The Public Trustee acts as executor of an estate where named executor in the Will, or as administrator when a person dies intestate (without a Will).

The Public Trustee manages court-awarded trusts, trusts established by a Will and trusts under deed for minors, as well as perpetual charitable and scholarship trusts.
Activity Indicators 2017-18 2016-17
•  Administration of new estates 653 532
•  Administration of new trusts 125 118
•  Finalised deceased estates 681 661
•  Finalised trusts 175 196
Effectiveness/Efficiency Indicators                             2017-18 2016-17
•  Customer satisfaction rating out of 5 with deceased estate administration services 3.74 3.9
•  Deceased estate administration customers who would recommend the Public Trustee 56% 65%

 

Agency Program – Personal Financial Administration

The Public Trustee can be appointed legally responsible for making all, or some, of a person’s financial and legal decisions where that person has lost capacity to do so.
Activity Indicators                    2017-18 2016-17
•  Appointed administrator or manager of financial and legal affairs – new customers 468 500
•  Active financial administrations as at 30 June 4 414 4 324
Effectiveness/Efficiency Indicators                              2017-18 2016-17
•  Customer satisfaction rating out of 5 by customers and their representatives 3.83 4.03
•  Personal financial administration customers who would recommend the Public Trustee 78% 83%

 

Agency Program – Litigation Guardian

The Public Trustee may be appointed by a Court to act as ‘Next friend’ for customers unable to conduct their own legal proceedings.
Activity Indicators                    2017-18 2016-17
•  Appointed as litigation guardian – new customers 34 27
•  Matters on hand at 30 June 87 62
Effectiveness/Efficiency Indicators                             
•  Customer satisfaction data not collected due to small sample size

 

Agency Program – Monitoring Private Financial Administrators and Managers

The Public Trustee is required annually to examine and report on activities of private financial administrators and managers appointed by SACAT and the courts.
Activity Indicators                    2017-18 2016-17
•  Review of financial statements of private administrators, managers and executors 1 828 1 773
•  Matters referred to SACAT for non-compliance with reporting requirements 142 90
•  Information sessions held for newly appointed administrators to explain their responsibilities 15 14
Effectiveness/Efficiency Indicators                              2017-18 2016-17
•  Feedback from information sessions Excellent/very good Excellent/very good

Legislation administered by the agency

Public Trustee Act 1995

Under the provisions of Section 5(2) of the Public Trustee Act 1995, the Public Trustee may act as a trustee, executor of a Will, administrator of an estate (whether or not of a deceased person), manager, receiver, committee, curator, guardian, next friend, agent, attorney, or stakeholder.

Other Acts that form the basis of how, and which services the Public Trustee delivers to customers are as follows:

  • Administration and Probate Act 1919;
  • Aged and Infirm Persons’ Property Act 1940;
  • Family Relationships Act 1975;
  • Guardianship and Administration Act 1993;
  • Inheritance (Family Provision) Act 1972;
  • Legal Practitioners Act 1981;
  • Powers of Attorney and Agency Act 1984;
  • South Australian Civil and Administrative Tribunal Act 2013;
  • Trustee Act 1936; and
  • Wills Act 1936.

Other agencies related to this agency (within the Attorney-General’s area/s of responsibility)

The Public Trustee is a business unit of the South Australian Attorney-General’s Department (AGD) and as such complies with AGD policies. The Public Trustee employees are employees of the AGD.

The Public Trustee works closely with the South Australian Civil and Administrative Tribunal (SACAT) when SACAT appoints the Public Trustee to administer the personal financial and/or legal affairs of people who are unable to manage their own affairs. At times, the Public Trustee works with the Office of the Public Advocate (OPA) when there are mutual customers i.e. OPA as guardian and the Public Trustee as financial administrator.

Employment opportunity programs

Program name Result of the program
Jobs4Youth One employee successfully completed the Jobs4Youth Program in 2017-18 and has since been offered further employment at the Public Trustee.
Graduate Program Two employees have commenced the graduate program during 2017-18 and are currently working through the program’s requirements.

Agency performance management and development systems

Performance management and development system Assessment of effectiveness and efficiency
Performance Review and Development Plans During 2017-18, 72% of the Public Trustee staff completed Performance Review and Development Plans.

As at 30 June 2018, 95% of employees had a development plan and performance review discussions.
During 2017-18 the Public Trustee continued use of AGD’s online performance and learning platform. The performance cycle requires employees and managers to set clear performance expectations (at least annually) and hold face to face reviews quarterly.

Work health, safety and return to work programs of the agency and their effectiveness

Program name and brief description Effectiveness
Employee Assistance Program (EAP) All staff have access to a confidential Employee Assistance Program, offering a counselling service to support and assist staff with both professional and personal issues.
AGD Health and Safety Committee The Public Trustee has manager and employee representation on this committee, which provides a consultative forum to support and continuously improve work, health, safety and wellbeing systems and practices.
Work health and safety Inspections As part of the commitment to the safety of employees, six-monthly inspections are conducted to identify any hazards or risks with corrective action taken as needed.
The Public Trustee Staff Culture & Wellbeing Initiatives Staff are encouraged to participate in a range of social and wellbeing initiatives. As part of this, the Public Trustee staff raise funds to give back to the community through specially selected local charities and organisations.

Work health and safety and return to work performance

Work health and safety and return to work performance statistics for the Public Trustee are included in the Attorney-General’s Department Annual Report.

Fraud detected in the agency

Nil. Data for the past five years is available at: https://data.sa.gov.au/data/organization/attorney-general-s-dept

Strategies implemented to control and prevent fraud

In September 2017, the Independent Commissioner against Corruption released his report to Parliament on the Evaluation of the Practices, Policies and Procedures of the Public Trustee to assist in preventing or minimising corruption, misconduct and maladministration in public administration. A set of 19 recommendations were made and the Public Trustee has developed actions and timelines to implement each of them. The following actions have been completed:

  • establishing a quality control position and commencing quality control audits;
  • undertaking an extensive staff engagement program (staff forums, increased communication, wellbeing and culture improvement initiatives);
  • establishing a Workplace Consultative Committee;
  • reviewing, simplifying and consolidating procedures (intranet, hyperlinks);
  • auditing a sample of high risk/high complexity files (representing each operational aspect of the organisation);
  • finalising the ICT Strategic Plan and work plan, to improve duplicate entry, recording approvals, and scanning invoices;
  • engaging a procurement specialist to manage contracts, and undertake business critical procurements;
  • reviewing storage, collection and security practices;
  • developing a data breach and privacy policy;
  • improving initial customer contact practices;
  • reviewing and implementing improved storage practices in relation to real estate/valuation information;
  • developing a plan to address key findings from the employee culture and well-being report (including measures of success).

The Public Trustee has an Audit and Risk Management Committee (ARMC) that endorses an annual internal audit plan. The internal audit plan is delivered by an independent auditing firm. During the year, the following internal audits were undertaken to assist fraud risk management;

  • Fraud and corruption control audit
  • Review of compliance against the fraud and corruption policy
  • Data analytics testing to assist in fraud detection.

Other actions to reduce the risk of fraud included:

  • Providing compliance certificates for investment activity to the Funds Management Forum and Investment Advisory committee;
  • Ensuring delegated authorities approve wages and overtime, and review material expenditure against delegated authorities; and
  • Ongoing monitoring of suspense account levels to ensure appropriate action is undertaken to address variances.

 Whistleblowers disclosure

There were no occasions on which public interest information has been disclosed to a responsible officer of the agency under the Whistleblowers Protection Act 1993.

Data for previous years is available at: https://data.sa.gov.au/data/organization/attorney-general-s-dept

Executive employment in the agency

Executive classification Number of executives
SAES1 2
SAES2 1

Data for previous years is available at: https://data.sa.gov.au/data/organization/attorney-general-s-dept

The Office of the Commissioner of Public Sector Employment has a data dashboard for further information on the breakdown of executive gender, salary and tenure by agency.

 

Consultants

The following is a summary of external consultants that have been engaged by the agency, the nature of work undertaken and the total cost of the work undertaken.

Consultancies below $10,000 each
Tasman Human Resource Consulting Human Resource Operations Review $8 096
Consultancies above $10,000 each
Mercer Investments (Aust) Ltd Customer Investment Tool Model Review $13 200
Total of all consultancies $21 296

See also the Consolidated Financial Report of the Department of Treasury and Finance http://treasury.sa.gov.au/ for total value of consultancy contracts across the SA Public Sector. 

Contractors

The following is a summary of external contractors that have been engaged by the agency, the nature of work undertaken and the total cost.

Contractor Purpose Value
Rawsons Electrical Pty Ltd Building Maintenance                          $670
Engie Fire Services Aust Pty Ltd Building Maintenance                      $1 029
Interpreting & Translating Centre Translating Services                        $1 070
Nijan Consulting HR Advice                        $1 276
SA Commercial Blinds Pty Ltd Building Maintenance                        $1 496
KWP! Advertising Pty Ltd Web Development                        $2 423
Tyrone Electrical Services Pty Ltd Electrical Contractor                        $2 568
Mediation Ers Pty Ltd Human Resource Services                        $3 432
Zip Heaters Aust Pty Ltd Building Maintenance                        $3 620
Chubb Fire & Security Pty Ltd Building Maintenance                        $3 646
Dorma Australia Pty Ltd Building Maintenance                        $5 392
Express Training Connections Training                        $7 080
Pinnacle Workplace Consultants HR Workplace Assessments                        $7 719
Cummins Hybrid Pty Ltd Marketing Services                        $7 783
Modis Staffing Pty Ltd Temp Staff Agency                        $9 053
SA Security Monitoring Pty Ltd Security Services                        $9 538
Scan Conversion Services Pty Ltd Scanning Services                      $10 425
Rentokil Initial Pty Ltd Building Maintenance                      $14 306
Bonita Kennedy Records Management                      $15 620
Swood Financial Solutions Pty Ltd IT Contract Work                      $16 685
Media Edge Cia Pty Ltd Advertising Services                      $21 250
Bold It Pty Ltd Recruitment Assistance                      $22 627
Wavemaker Australia Pty Ltd Advertising Services                      $30 073
KPMG Forensic Pty Ltd Corporate Strategy                      $32 340
Ernst & Young Customer Investment Model Review and Enhancements                      $40 315
Randstad Pty Ltd Temp Staff Agency                      $44 803
Careerlink People Solutions Temp Staff Agency                      $47 696
Pricewaterhouse Coopers Internal Audit and Risk Management Services                      $49 858
Hays Specialist Recruitment Pty Ltd Temp Staff Agency                      $79 507
Deloitte Risk Advisory Pty Ltd Internal Audit and Risk Management Services                  $260 308
Total                $753 608

Data is available at: https://data.sa.gov.au/data/organization/attorney-general-s-dept

The details of all South Australian Government-awarded contracts for goods, services, and works are displayed on the SA Tenders and Contracts website here.

The website also provides details of across government contracts here.

Financial performance of the agency

Following is a brief summary of the overall financial position of the agency. Full audited Financial Statements for 2017-18 are attached to this report.

The Public Trustee achieved an operating surplus before income tax equivalents of $1.175m compared to a budgeted operating surplus of $425 000.

2017-18 Summary of Comprehensive Income

 

 

 

 Actual
2017-18
$000s		 Budget
2017-18
$000s		 Actual
2016-17
$000s
Total Income 24 804 23 994 23 334
Total Expenses 23 629 23 569 22 736
Profit before Income Tax Equivalent Payments 1 175 425 598
Income Tax Equivalent Payments 352 127 179

During 2017/18, a dividend of $899,000 was paid (2016/17 $57,000).

The following items contributed to the favourable result as at 30 June 2018:

  • Revenue was 3.4% ($810 000) higher than budget. Favourable variances to budget of $548 000 investment revenue; management fees from Common Funds $206 000 and;
  • sundry income $202 000 offset by an unfavourable budget variance in fees and charges of $146 000.
  • Expenditure was 0.2% ($60 000) higher than budget. The slightly higher expenditure can be attributed to unbudgeted long service leave liabilities transferred from other agencies during the year.

Data for previous years is available at: https://data.sa.gov.au/data/organization/attorney-general-s-dept

 Other financial information

Customer Investments

 2017-18 was a positive year for the Public Trustee’s investment strategies. All investment options had positive returns, with growth-orientated strategies performing particularly well. Investment strategies with a higher weighting to shares and unlisted assets, such as property and infrastructure were the best performers.

The Public Trustee’s investment returns ranged from 1.79% for Cash to 13.62% for Equities, net of fees. All Standard Investment Strategies outperformed their respective industry benchmarks over 1, 3 and 5 years. Five year returns stand at 2.33% for Cash to 11.84% for Equities, net of fees. The investment returns demonstrate that the long-term performance has been strong, stable and continues to exceed benchmarks.

During the financial year, the Public Trustee made new investments in specialist global small companies and emerging markets funds. These new investments will provide additional diversification benefits and are expected to generate capital growth over the long term.

Other information requested by the Attorney-General or other significant issues affecting the agency or reporting pertaining to independent functions

Under the Public Corporations Act 1993, a Charter must be prepared for a Public Corporation and agreed between the Attorney-General and the Treasurer.

The Charter describes the reporting and accountability requirements and outlines objectives for invested customer funds, financial and other performance targets. It also sets out the responsibilities and the expectations of both the Public Trustee and the Government. The Charter is reviewed annually.

Section B: Reporting required under any other act or regulation

Public Trustee Act 1995
Section 30

(3)       The Public Trustee must include in the Public Trustee’s annual report to the Minister for each financial year—

(a)   the audited statement of accounts in respect of each common fund for that financial year; and

(b)    the Auditor-General’s report on those accounts; and

(c)     the following investor information in respect of each common fund:

(i)         the nature and amount or rate of any fee that the Public Trustee charges in respect of investment in the fund; and

(ii)         the class of investments in which the fund may be invested; and

(iii)       the extent (if any) to which a capital sum invested may be reduced to defray losses from investment of the fund; and

(iv)       the rights of an investor in the fund to withdraw all or part of the person’s investment in the fund and the period of notice (if any) that the investor is required to give the Public Trustee in respect of such withdrawal; and

(v)       the terms governing distribution of income and profit or loss of a capital nature attributable to each investment in the fund.

Audited Statement of Accounts in respect of each Common Fund:

Refer to the Annual Financial Statements section of this report.

The Auditor-General’s Report upon the Statements of Account:

Refer to the Annual Financial Statements section of this report.

The nature and amount of any fee that the Public Trustee charges in respect of investment in the common funds:

Management Fee

A management fee is charged against money invested in each common fund at the rate of one-twelfth of 1.025% (inc. of GST) of the value of the fund as at the first business day of each month. Management fees attract GST at a reduced rate as there is an entitlement to claim a reduced input tax credit.

Goods and Services Tax

An investment in the Public Trustee’s common funds is classified as an input-taxed financial supply and no GST is charged on such supplies. Investments made in common funds and investor withdrawals from those funds are not subject to GST; nor are entry fees subject to GST.

If a supply is input-taxed, the supplier will not usually receive a tax credit for any GST incurred in connection with the supplier’s expenses.

For financial supplies, the supplier is able to claim a tax credit for three quarters of the liability incurred in respect of certain expenses (this is called a reduced input tax credit).

The majority of expenses incurred by the Public Trustee’s common funds, including the Public Trustee management fees, are eligible for the reduced input tax credit. The net impact of the GST on expenses incurred by the common funds is therefore approximately 2.5% rather than the full 10% rate.

Indirect Cost Ratios (formerly Management Expense Ratio)

The total funds management costs for common funds and standard investment strategies, as represented by Indirect Cost Ratios (ICR), are shown in the following table.

Strategy ICR 2017-18 ICR 2016-17
Cash 0.87% 1.08%
Capital Stable 1.45% 1.27%
Balanced 1.57% 1.42%
Growth

Equities

 1.60%

1.64%

 1.50%

1.58%
Common Fund ICR 2017-18 ICR 2016-17
Cash 0.87% 1.08%
Long term fixed interest 1.42% 1.10%
Short term fixed interest 1.55% 1.09%
Overseas fixed interest 1.57% 1.33%
Australian shares 1.62% 1.56%
Property 1.76% 1.79%
Overseas shares 1.66% 1.60%

Entry Fees

Investors pay the following fees when investing in common funds (note: no fees are charged on entry or exit from the Cash Common Fund):

Fees for all other standard investment strategies

For beneficiaries of estates administered by the Public Trustee, where there is a change of ownership of the assets and when funds would otherwise be distributed:

Amounts up to $500 000 0.5%
Additional amounts from $500 000 to $2 million 0.375%
Additional amounts from $2 million to $5 million 0.25%
Additional amounts above $5 million 0.0%

For beneficiaries of estates administered by the Public Trustee where there is no change of ownership of the assets and when funds would otherwise be distributed no entry fee will apply except to additional funds invested, in which case the above reduced scale for the beneficiary investors will apply.

For all other investors:

Amounts up to $500 000 1.0%
Additional amounts from $500 000 to $2 million 0.75%
Additional amounts from $2 million to $5 million 0.5%
Additional amounts above $5 million 0.0%

The above fees will also apply to distributed income and realised capital gains when they are reinvested in a strategy other than cash.

Exit Fees

No exit fees are charged.

Switching Fees

No switching fees will be charged except when moving monies from the cash investment strategy to another investment strategy. The entry fees as disclosed above will then apply.

 Deposits

The Public Trustee does not accept cash deposits. Investments in strategies may be made either by cheque, direct credit or by transfer of funds from an existing estate being administered by the Public Trustee.

Identification

When establishing an investment account with the Public Trustee, customers will be required to provide satisfactory proof of identity.

The extent to which a capital sum invested may be reduced to defray losses from investment of a common fund

Realised or unrealised losses of a capital nature of an investment of a common fund shall be received or borne by investors, in proportion to the capital sums invested in the fund.

Rights of an investor in a common fund to withdraw all or part of a person’s investment in the fund

Investors may withdraw all or part of their investment in a fund at any time.

Partial withdrawals must be in amounts of $1 000 or greater, or the balance of the funds being managed.

Cash Common Fund

Proceeds of withdrawals from the Cash Common Fund of amounts less than $1 million will be available on the next business day (subject to the request being received by 12 noon). Proceeds of withdrawals of amounts greater than $1 million may not be available for 30 business days.

Other Investment Strategies

Proceeds of withdrawals from investment strategies, other than the cash investment strategy fund, will not be available until 15 business days after the next exit day (currently the first day of each month). Proceeds of withdrawals of amounts greater than $1 million from these investment strategies may not be available until 30 business days after the next exit day.

Terms governing distribution of income and profit or loss of a capital nature attributable to each investment in a common fund

The net income and realised capital gains of each fund are calculated to 30 June and 31 December and will be distributed to the investor in July and January of each year, unless the investor has given instructions to reinvest the money.

Classes of investment in which common funds may invest

Section 29 of the Public Trustee Act 1995 requires the Public Trustee to determine the classes of investments in which a common fund may be invested, and provides for these classes to be varied from time to time. The Act does not define classes of investment.

Determination of the classes of investment in which the Public Trustee common funds may invest

Cash Common Fund

The permitted classes of investment are:

  1. Cash
  2. Australian Fixed Interest

Qualifications on these investment classes:

  1. All investments shall be denominated in Australian dollars.
  2. Fixed rate securities shall not exceed three years to maturity.
  3. Floating rate securities shall not exceed 10 years to maturity.

The following class of investment is explicitly excluded:

  1. Derivatives.

Short-term Fixed Interest Common Fund

The permitted classes of investment are:

  1. Cash
  2. Australian Fixed Interest

Qualifications on these investment classes:

  1. All investments shall be denominated in Australian dollars. The fund’s liquidity requirements will be managed by an investment in the Cash Common Fund.
  2. Fixed rate securities shall not exceed five years to maturity.
  3. Floating rate securities shall not exceed 10 years to maturity.

Security lending arrangements in relation to authorised investments are permitted.

The following class of investment is explicitly excluded:

  1. Derivatives.

Long-term Fixed Interest Common Fund

The permitted classes of investment are:

  1. Cash
  2. Australian Fixed Interest
  3. Inflation-linked Securities

Qualifications on these investment classes:

  1. All investments shall be denominated in Australian dollars.
  2. The fund’s liquidity requirements will be met by investment in the Cash Common Fund.
  3. Fixed rate securities and inflation-linked securities shall not exceed 15 years and 25 years to maturity, respectively.
  4. Inflation-linked securities shall be restricted to consumer inflation or average weekly earnings-linked securities issued by the Commonwealth Government, State Governments or the Government of the Northern Territory, and securities issued by other parties where the payments to holders of the securities are guaranteed by these governments.
  5. Security lending arrangements in relation to authorised investments are permitted.

The following class of investment is explicitly excluded:

  1. Derivatives.

Australian Shares Common Fund

The classes of investment are:

  1. Cash
  2. Australian equities
  3. Derivatives

Qualifications on these investment classes:

  1. Fund liquidity requirements shall be met by investment in the Cash Common Fund.
  2. Investments in Australian Equities shall be limited to securities of companies and trusts listed on the Australian Stock Exchange, and to unlisted securities in companies and trusts where the intention is for these securities to be listed within six months of investment.
  3. Small capitalisation companies, defined as those outside the Top 100 Sector of the Australian Stock Exchange’s All Ordinaries Index, shall not exceed 20% of the fund’s assets.
  4. Underwriting is permitted only where the Public Trustee has made a firm subscription to a new issue and the amount underwritten does not exceed the subscription amount.
  5. Underwriting as an investment instrument is prohibited.
  6. Security lending arrangements in relation to authorised investments is permitted.
  7. Investments in financial derivatives specifically relating to the investments of the fund are permitted for the purpose of:
  1. investment of funds; or
  2. hedging or otherwise managing the risk of the fund.

Property Common Fund

The classes of investment are:

  1. Cash
  2. Property
  3. Infrastructure

Qualifications on these investment classes:

  1. Fund liquidity requirements shall be met by investment in the Cash Common Fund.
  2. Investments in property comprise securities of companies and trusts that are either listed or unlisted.
  3. Investments in listed and unlisted infrastructure trusts are permitted in the fund.
  4. Underwriting is permitted only where the Public Trustee has made a firm subscription to a new issue and the amount underwritten does not exceed the subscription amount.
  5. Security lending arrangements in relation to authorised investments are permitted.
  6. Investments in financial derivatives specifically relating to the investments of the fund are permitted for the purpose of:
  • investment of funds; or
  • hedging or otherwise managing the risk of the fund.

Overseas Shares Common Fund

The classes of investment are:

  1. Cash
  2. International Equities
  3. Derivatives.

Qualifications on these investment classes:

  1. Fund liquidity requirements shall be met by investment in the Cash Common Fund.
  2. Cash, where held other than by investment in the Cash Common Fund, shall be held as bank deposits, bank-guaranteed securities or short-term sovereign debt instruments.
  3. Trading in inter-bank or over-the-counter markets shall occur only in those markets which have been approved by the relevant government agencies of the country in which the market is conducted.
  4. Investments in collective investment schemes, the primary mandates of which are the holdings of smaller companies and emerging markets securities, shall not exceed 25% and 15% of the assets of this common fund, respectively.
  5. Underwriting is permitted only where the Public Trustee (either directly or via an appointed custodian) has made a firm subscription to a new issue and the amount underwritten does not exceed the subscription amount.
  6. Security lending arrangements in relation to authorised investments are permitted.

Overseas Fixed Interest Common Fund

The permitted classes of investment are:

  1. Cash
  2. International Fixed Interest and inflation linked securities
  3. Derivatives

Qualifications on these investment classes:

  1. The fund’s liquidity requirements shall be met by investment in the Cash Common Fund.
  2. Cash, where held other than by investment in the Cash Common Fund, shall be held as bank deposits, bank-guaranteed securities or short-term sovereign debt instruments.
  3. All fixed income securities must be rated by recognised rating agencies and at least 90% of the fund shall comprise investment-grade securities.
  4. Investments in financial derivatives specifically relating to the investments of the fund are permitted for the purpose of:
  • investment of funds; or
  • hedging or otherwise managing the risk of the fund.

For all classes of investment the fund may invest in collective investment schemes operated by organisations approved by the relevant government agencies, provided that the rules of the collective investment schemes restrict the schemes’ investments to the permitted classes of investment of the common fund.

 2017–18 Investment Strategies

2017–18 Standard Investment Strategies’ five-year performance      

2017–18

Performance

 Last 12 Months

Annualised

%

 3 Years

Annualised

%

 5 Years

Annualised

%
Cash 1.79% 1.94% 2.33%
benchmark 0.77% 0.95% 1.22%
variance 1.02% 0.99% 1.11%
 
Capital Stable 4.34% 4.05% 4.95%
benchmark 3.78% 3.45% 4.34%
variance 0.56% 0.60% 0.61%
Balanced 7.08% 6.13% 7.38%
benchmark 6.34% 5.23% 6.70%
variance 0.74% 0.90% 0.68%
Growth 9.32% 7.58% 9.05%
benchmark 8.30% 6.37% 8.15%
variance 1.02% 1.21% 0.90%
Equities 13.62% 10.05% 11.84%
benchmark 12.27% 8.49% 10.76%
variance 1.35% 1.56% 1.08%

2017–18 Standard Investment Strategy Performance versus CPI Objectives (as at 30 June 2018)

Investment Strategy CPI Objective Investment Horizon Target Return

% pa

 Actual Return

% pa

 Over (+) /Under(-) Outperformance % pa
Capital Stable CPI + 2% p.a. 3 Years 3.7 4.1 + 0.4
Balanced CPI + 3% p.a. 5 Years 4.9 7.4 + 2.5
Growth CPI + 3.5% p.a. 7 Years 5.4 9.0 + 3.6
Equities CPI + 4% p.a. 10 Years 6.1 8.3 + 2.1

 The cash objective is to provide customers a very low risk strategy designed to achieve a return comparable to the 90 day bank bill rate and provide the advantage of having funds available at 24 hour call for amounts of up to $1m.

2017–18 Asset Allocation

2017–18 Capital Stable Standard Investment Strategy

Common Fund Allocation (%) 2017-18 Allocation (%) 2016-17
Neutral Period End $m Neutral Period End $m
Australian Shares 10.0% 10.5% $13.13 10.0% 10.0% $11.52
Overseas Shares 8.0% 8.1% $10.19 8.0% 8.4% $9.67
Listed Property Securities 10.0% 10.0% $12.52 10.0% 9.6% $11.09
Long-term Fixed Interest 15.0% 14.8% $18.53 15.0% 15.0% $17.22
Short-term Fixed Interest 26.5% 26.5% $33.27 26.5% 26.7% $30.74
Overseas Fixed Interest 12.5% 12.0% $15.05 12.5% 12.1% $13.95
Cash 18.0% 18.1% $22.70 18.0% 18.2% $20.96
TOTAL 100.0% 100.0% $125.39 100.0% 100.0% $115.15

2017–18 Balanced Standard Investment Strategy 

Common Fund Allocation (%) 2017-18 Allocation (%) 2016-17
Neutral Period End $m Neutral Period End $m
Australian Shares 19.0% 19.8% $46.81 19.0% 19.1% $42.38
Overseas Shares 16.0% 16.2% $38.28 16.0% 16.9% $37.46
Listed Property Securities 20.0% 19.9% $47.00 20.0% 19.3% $42.96
Long-term Fixed Interest 22.0% 21.6% $50.89 22.0% 22.0% $48.83
Short-term Fixed Interest 7.0% 7.0% $16.47 7.0% 7.0% $15.70
Overseas Fixed Interest 12.0% 11.5% $27.09 12.0% 11.6% $25.90
Cash 4.0% 4.0% $9.46 4.0% 4.1% $9.01
TOTAL 100.0% 100.0% $236.00 100.0% 100.0% $222.24

2017–18 Growth Standard Investment Strategy

Common Fund Allocation (%) 2017-18 Allocation (%) 2016-17
Neutral Period End $m Neutral Period End $m
Australian Shares 29.0% 30.0% $65.54 29.0% 28.9% $60.38
Overseas Shares 24.0% 24.1% $52.68 24.0% 25.1% $52.45
Listed Property Securities 20.0% 19.7% $43.10 20.0% 19.2% $40.10
Long-term Fixed Interest 12.5% 12.1% $26.51 12.5% 12.4% $25.89
Short-term Fixed Interest 4.5% 4.4% $9.71 4.5% 4.5% $9.42
Overseas Fixed Interest 6.0% 5.7% $12.41 6.0% 5.8% $12.08
Cash 4.0% 4.0% $8.67 4.0% 4.1% $8.41
TOTAL 100.0% 100.0% $218.62 100.0% 100.0% $208.73

2017–18 Equities Standard Investment Strategy

Common Fund Allocation (%) 2017-18 Allocation (%) 2016-17
Neutral Period End $m Neutral Period End $m
Australian Shares 55.0% 55.7% $45.52 55.0% 53.8% $42.12
Overseas Shares 45.0% 44.3% $36.16 45.0% 46.2% $36.16
TOTAL 100.0% 100.0% $81.68 100.0% 100.0% $78.28

Data for previous years is available at: https://data.sa.gov.au/data/organization/attorney-general-s-dept

Section C: Reporting of public complaints

Public complaints received by the Public Trustee
  2017-18 2016–17
Number of instances 76 78

 Data for previous years is available at: https://data.sa.gov.au/data/organization/attorney-general-s-dept

Appendix 1: 2017-18 The Public Trustee Services

 2017-18 The Public Trustee Services

2017-18 2016-17
Documents prepared (including during home visits)  
New Wills 640 684
Revised Wills 956 1 055
Total Wills 1 596 1 739
Enduring Powers of Attorney (new and revised) 391 456
Documents prepared during home visits  
Number of home visits 232 202
Wills (new and revised) 102 132
Enduring Powers of Attorney (new and revised) 28 31
Deceased estate administration  
New cases 653 532
Completed estate matters 681 661
Estates currently under administration 1 172 1 136
Grants of probate and administration received for the period 428 410
Unclaimed money balances – finalised at 30 June, payment early next period  
Number of unclaimed balances paid to DTF 44 43
Value of unclaimed balances paid to DTF $0.3m $2.9m
Annual taxation returns    
Taxation returns and other assessments completed 7 410 7 166
Personal estate administration  
Total number of personal estates under administration (including SACAT orders, court awards and Powers of Attorney) 4 414 4 324
Number of new customers under SACAT Orders 403 438
New court-award customers 29 28
Total funds received from new court awards $10.6m $12.7m
New Power of Attorney customers 36 34
Number of in-person meetings with Personal Estates Branch customers 811 642
Court-awarded funds under administration (includes court award customers and court award trusts) $436.5m $416.4m
Reduced fee threshold $4 950 $4 850
% of customers under administration from whom no fees were collected 15% 16%
Trust activity  
New trusts 125 118
Trust matters finalised 175 196
Trusts on hand at 30 June 1 316 1 362

 

 
Trusts for children under the care of the Minister  
Trusts for children under the care of the Minister for Human Services (Formerly Communities and Social Inclusion) on hand at 30 June 33 41
Completed trusts for children under the care of the Minister for Human Services (Formerly Communities and Social Inclusion) 7 3
Litigation guardian appointments  
Number of next friend/litigation guardian matters on hand 87 62
New litigation guardian customers 34 27
Private administrators and private managers – review of financial statements    
Private administrators appointed under the Guardianship and Administration Act 1993 1 384 1 303
Private managers appointed under the Aged and Infirm Persons’ Property Act 1940 168 170
Matters referred to SACAT for non – compliance 142 90
Information sessions for newly appointed administrators 15 14
Alternate executor administrations pursuant to a court order 276 300
Customer financial services activity             
Funds under administration (including superannuation) $1 179.1m $1 127.3m
New funds invested for the reporting period $79.1m $165.4m
Funds redeemed for the reporting period $49.3m $93.1m
Total Common Fund trades for the reporting period $1 056.8m $1 935.2m
Distributions to customers $44.0m $46.7m
Total number of payments made 417 896 411 036
Total value of payments made $290.6m $285.6m
Total customer funds receipted
value of pensions included		 $281.7m

$81.3m

 $315.7m
$74.2m
Total value of real estate properties held $357.8m $333.2m
Total value of managed customer assets $1 659.5m $1 552.7m

Data for previous years is available at: https://data.sa.gov.au/data/organization/attorney-general-s-dept

Appendix 2: Audited financial statements 2017-18

The Public Trustee’s audited annual Financial Statements for the year ended 30 June 2018 including both corporate and customer information can be found here.

The full 2017-18 The Public Trustee Annual Report can be found here.