Home / 2016-17 Annual Report

2016-17 Annual Report

Public Trustee

2016-17 Annual Report

  

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 ptenquiries@sa.gov.au

ISSN1441-2799 (Print)
1836-263X (Online)

Date presented to Minister: 28 September 2017

To:  The Honourable John Rau MP

Deputy Premier

Attorney-General

Minister for Justice Reform

Minister for Planning

Minister for Industrial Relations

Minister for Child Protection Reform

Minister for the Public Sector

Minister for Consumer and Business Services

Minister for the City of Adelaide

Member of the Executive Council

 

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:

Debra Contala
Public Trustee

28 September 2017

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 strategies and their relationship to SA 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 Minister’s area/s of responsibility)

Employment opportunity programs

Agency performance management and development systems

Occupational health, safety and rehabilitation programs of the agency and their effectiveness

Fraud detected in the agency

Strategies implemented to control and prevent fraud

Whistle-blowers’ disclosure

Executive employment in the agency

Consultants

Financial performance of the agency

Other information requested by the Minister(s) 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: 2016-17 PT Services

Appendix: Audited financial statements 2016-17

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 (PT) 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. Public Trustee is a body corporate with the powers of a natural person.

The role of PT is to provide all South Australians with access to Will making services, powers of attorney preparation and deceased estate and trust administration. PT also has a role in managing the financial affairs of those people in the community who lack the capacity to manage their own affairs as determined by the courts, the South Australian Civil and Administrative Tribunal (SACAT) or through activation of powers of attorney.

Objectives

Public Trustee’s strategic objectives under our 2014–17 Strategic Plan are:

  • Achieve customer service excellence by delivering services in a professional, consistent, coordinated and timely manner;
  • Delivery of our objectives through good governance, strong leadership, and sound risk management;
  • Improve and enhance all areas of our business processes;
  • Invest in our people and create a rewarding environment in which to work;
  • Ensure the organisation remains profitable and meets agreed fiscal targets; and
  •  Raise awareness of the importance of having a valid Will.

Key strategies and their relationship to SA Government objectives

Key strategy SA Government objective
Customer Service

•     Improve communications to customers and stakeholders.
•     Ensure customer service standards are met or exceeded.

Target 32 Customer and client satisfaction with government services.
Governance and Leadership

•     Develop the leadership capabilities of the management of PT.
•     Ensure there is a sound risk, control and compliance framework in PT.

Target 32 Customer and client satisfaction with government services.
Business Improvement

•     Develop strategies to move to digital transactions.
•     Continuously improve business processes to maximise efficiency.

Target 32 Customer and client satisfaction with government services.

Target 34 Credit rating.

People and Culture

•     Ensure staff are well trained and equipped to undertake their roles.
•     Continuously improve security arrangements to ensure a safe work environment.

Target 32 Customer and client satisfaction with government services.
Financial Sustainability

•     Meet PT fiscal targets set by Government.
•     Achieve investment returns at or exceeding benchmarks.

Target 34 Credit rating.
Raise Community Awareness

•     Undertake a range of community awareness activities to provide information to the community about the importance of having a valid Will.

Target 32 Customer and client satisfaction with government services.

Agency programs and initiatives and their effectiveness and efficiency

Program name Indicators of performance/effectiveness/efficiency Comments
Writing Wills & Powers of Attorney:

•  Free Will and power of attorney drafting services are provided for all South Australians who nominate PT as their executor, attorney or substitute attorney.

•  PT prepared 684 new Wills and revised 1055 existing Wills.

•  A total of 456 power of attorney documents were prepared.

•  A total of 202 visits were made to people in their homes or other facilities to prepare Wills.

•  The Customer Satisfaction Survey showed satisfaction with PT services rated at 4.78 out of 5.

•  The survey showed that 95% of Wills customers would recommend PT to others.

•  The total number of new Wills prepared increased by 19.3% since 2015-16.

•  Customer Satisfaction Survey results were very positive with the majority indicating that they were satisfied with the level of service. This result has remained steady since 2015.

Deceased Estates & Trusts Administration:

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

•  PT manages court-awarded trusts, trusts established by a Will and trusts under deed for minors, as well as perpetual charitable and scholarship trusts.

•  Commenced administration of 532 new deceased estates and 118 new trusts

•  Finalised 661 deceased estates and 96 trusts.

•  Customer Satisfaction Survey rated satisfaction with PT services at 3.9 out of 5.

•  The survey showed that 65% of respondents would recommend PT to others.

•  While positive, this year’s customer satisfaction level represented a slight decline in mean satisfaction compared to previous year’s surveys.
Personal Financial Administration:

•  PT can be appointed to be legally responsible for making all, or some, of a person’s financial and legal decisions where that person has lost capacity to do so.

•  PT appointed administrator or manager of the financial and legal affairs of 503 new customers.

•  As at 30 June 2017 there were 4324 financial administrations on hand.

•  Customer Satisfaction Survey results, collected from both customers and their representatives, gave a satisfaction rating of 4.03 out of 5.

•  The proportion of survey respondents who would recommend Public Trustee to others was 83%

•  The number of new personal financial administrations has increased by 143 since 2015-16.

•  Overall Customer Satisfaction Survey results were positive and indicate sound and continuing levels of customer satisfaction.

 

Litigation Guardian:

•  PT may be appointed by a Court to act as ‘Next friend’ for customers unable to conduct their own legal proceedings.

•  PT appointed litigation guardian for 27 new customers.

•   As at 30 June 2017 there were 62 matters on hand.

•  New matters increased slightly from 2015-16.
Monitoring Private Financial Administrators and Managers:

•  PT is required annually to examine and report on activities of private financial administrators and managers appointed by SACAT and the courts.

•  PT’s Regulatory Services team reviewed the financial statements of a total of 1773 Private Administrators, Managers and Executors.

•  A total of 90 matters were referred to SACAT for non-compliance with reporting requirements.

•  PT held 14 information sessions for newly appointed administrators, to provide them with information about their responsibilities.

•  Information sessions rated as being of ‘Excellent’ or ‘Very Good’ value for those in with the role of Private Administrator. The number of sessions held over the year was increased in response to demand.

Legislation administered by the agency

Public Trustee Act 1995

Under the provisions of Section 5(2) of the Public Trustee Act 1995, PT 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, PT services are delivered 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 Act 2013;
  • Trustee Act 1936; and
  • Wills Act 1936.

 Organisation of the agency

The Public Trustee

 Investment Services

 Business & Client Financial Services

Client Financial Services

Taxation Services

Information and Communications Technology

Corporate Services

Regulation of Private Financial Administrators

Governance and Compliance

Customer Services

Estate Services

Wills & Related Services

Customer Relationships Team

Deceased Estates

Trusts

Personal Estates

Legal

The major governance committees for the organisation are;

·         Investment Advisory Committee;

·        Audit and Risk Management Committee; and

·        Information and Communications Technology (ICT) Committee

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

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

PT works closely with SACAT when SACAT appoints PT to administer the personal financial and/or legal affairs of people who are unable to manage their own affairs. At times PT works with the Office of the Public Advocate (OPA) when we have mutual customers i.e. OPA is guardian and PT is financial administrator.

Employment opportunity programs

Program name Result of the program
Jobs4Youth Two employees successfully completed the Jobs4Youth Program in 2016 -17 and have since gained ongoing roles in PT.
Graduate Program One employee has commenced the graduate program and is 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 2016-17 94% of PT staff completed Performance Review and Development Plans.
During 2016-17 PT transitioned to AGD’s online ELMO system. The online platform provides access to performance development and training in a centralised location. A move away from a complex paper-based process ELMO provides fully transferrable employee records when employees or managers move. The performance cycle consists of employees and managers setting clear performance expectations (at least annually) and holding face to face reviews quarterly.

Occupational health, safety and rehabilitation programs of the agency and their effectiveness

Occupational health, safety and rehabilitation programs 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. PT 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.
Floor Inspections. As part of the commitment to the safety of employees, six-monthly floor inspections are conducted to identify any hazards or risks with corrective action taken as needed.
Public Trustee Staff Wellbeing Initiatives. PT staff are encouraged to participate in a range of social and wellbeing initiatives. As part of this, PT staff raise funds to give back to the community through specially selected local charities and organisations.

Fraud detected in the agency

Nil to report.

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

PT has dedicated significant effort to fraud risk management following identification of a fraud in late 2015-16. In particular, the circumstances of the fraud were independently examined to determine the controls and processes that required strengthening. A new role of Manager, Governance and Compliance was created to strengthen the co-ordination of risk management and governance activity. The incumbent is the responsible officer for fraud and corruption controls in accordance with the SA Public Sector Fraud and Corruption Control Policy.

Further work undertaken during the year included:

·         strengthening a range of controls relating to the storage of customer’s personal assets, the storage, sale and disposal of personal property and vendor creation;
·         improving the Control Self-Assessment program and reporting requirements;
·         providing appropriate training to staff in regard to improved procedures and ensuring that all staff attended fraud awareness training;
·         reviewing PT’s compliance with the Public Sector Fraud and Control Policy;
·         updating the fraud and corruption enterprise risk assessment register and undertaking a comprehensive review of the enterprise risk register for the organisation; and
·         using proactive fraud detection methods including data analytics.

A function of the Independent Commission Against Corruption (ICAC) is to assist government agencies in developing their internal practices, policies and procedures. On  9 March 2017 the Commissioner announced an evaluation of Public Trustee’s policies, procedures and practices. PT provided information to ICAC to undertake the evaluation.

Whistle-blowers’ disclosure

Number of occasions on which public interest information has been disclosed to a responsible officer of the agency under the Whistle-blowers’ Protection Act 1993 0

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

Consultants

PT had no consultancies during the 2016-17 financial year.

Financial performance of the agency

Public Trustee achieved an operating surplus after income tax equivalents of $419 000 compared to a budgeted operating surplus of $559 000.

The following table provides summaries of the Statement of Comprehensive Income and Statement of Financial Position, showing comparisons between either ‘actual to budget’ and/or ‘actual to prior year’ performance.

Table 1: 2016-17 Summary of Statement of Comprehensive Income

 

 

 

Actual
2016-17
$000s
Original Budget
2016-17
$000s
Actual
2015-16
$000s
Revenue from Ordinary Activities 23 334 23 445 22 490
Expenses from Ordinary Activities 22 736 22 655 22 476
Net Operating Surplus from Operating Activities before Income Tax Equivalent 598 800 14
Income Tax Equivalent 179 241 4
Total changes in equity (before dividend payments) 419 559 10
Total changes in equity (after dividend payments) 63 84 (219)

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

Commissions and fees from core business activities were $1.247 million below budget.

Favourable outcomes against budget in both management fees ($609 000 favourable) and investment returns ($87 000 favourable), due primarily to buoyant market returns and a favourable return in other income ($220 000) partially offset the unfavourable core business revenue outcomes. The favourable outcome in expenditure totalling $158 000 when compared to budget contributed to the final outcome. Factors contributing to this result include:

·         A concerted effort to exercise expenditure restraint on supplies and services during 2016-17;
·         The net financial effect of the increase in the bond yield used in the actuarial calculation of long service leave provided a saving in salaries; and
·         Savings in depreciation due to timing of capital expenditure.

 Other financial information

Customer Investments

 For the year ended 30 June 2017, PT’s investment strategies performed well.

Growth oriented strategies, with more exposure to shares, delivered the best returns whilst returns from defensive asset classes were lower.

Global shares and Australian shares were the largest drivers of returns for the 2016-17 financial year. Global interest rates moved higher, with the US Federal Reserve increasing rates in March and June 2017. The Reserve Bank of Australia reduced interest rates to an all time low of 1.50%. The Australian dollar appreciated against the US dollar finishing at $0.77US for the financial year.

All of PT’s investment strategies outperformed their respective benchmarks with returns ranging from 1.85% for cash to 15.93% for the Equities strategy (net of fees). The investment returns for five years demonstrate that the long-term performance has been strong, stable and has continued to exceed benchmarks.

Other information requested by the Minister(s) 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 by its Minister and the Treasurer.

The Charter, agreed by the Attorney-General, the Treasurer and the Public Trustee, describes the reporting and accountability requirements and sets out the responsibilities and the expectations of both PT and the Government. The Charter is reviewed annually.

The Charter also requires an agreed annual performance statement that outlines PT’s objectives for invested customer funds, and financial and other performance targets.

 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 PT 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 PT’s common funds is classified as an input-taxed financial supply and no GST is charged on such supplies. Simply put, 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.

However, 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 PT’s common funds, including PT 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 2016-17 ICR 2015–16
Cash 1.08% 1.08%
Capital Stable 1.27% 1.27%
Balanced 1.42% 1.42%
Growth

Equities

1.50%

1.58%

1.52%

1.67%

Common Fund ICR 2016-17 ICR 2015–16
Cash 1.08% 1.08%
Long term fixed interest 1.10% 1.08%
Short term fixed interest 1.09% 1.09%
Overseas fixed interest 1.33% 1.35%
Australian shares 1.56% 1.62%
Property 1.79% 1.75%
Overseas shares 1.60% 1.73%

Entry Fees
Investors pay the following fees when investing in common funds (NB: no fees are charged on entry or exit from the cash common fund):

All other standard investment strategies;

  • For beneficiaries of estates administered by PT, 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 PT 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.

No exit fees are charged.

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

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

Identification
When establishing an investment account with PT, customers will be required to provide satisfactory proof of identity. A PT contact officer will explain identification requirements.

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.

Part withdrawals must be in amounts of $1 000 or greater, or the balance of the funds being managed, if the amount to be withdrawn reduces the remaining balance to less than $5 000 for beneficiary investors or $20 000 for other investors. All withdrawal requests must be made in writing.

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 until the thirtieth business day.

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 the thirtieth business day 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 (the Act) requires PT 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 PT 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:

  • Derivatives.

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.

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:

  • Derivatives.

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.

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:

  • Derivatives.

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

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 PT 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:
  • investment of funds; or
  • hedging or otherwise managing the risk of the fund.

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.

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 PT 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.

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.

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 PT (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.

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.

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
  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.

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.

 2016–17 Investment Strategies

Table 2: 2016–17 Standard Investment Strategies’ five-year performance

2016–17
Performance
Last 12 Months
Annualised%
3 Years
Annualised%
5 Years
Annualised%
Cash 1.85% 2.25% 2.76%
benchmark 0.80% 1.22% 1.52%
variance 1.05% 1.03% 1.24%
 
Capital Stable 4.48% 4.25% 5.68%
benchmark 3.26% 3.68% 4.98%
variance 1.22% 0.57% 0.70%
Balanced 7.05% 6.10% 8.53%
benchmark 5.81% 5.41% 7.79%
variance 1.24% 0.69% 0.74%
Growth 9.71% 7.30% 10.61%
benchmark 8.56% 6.30% 9.72%
variance 1.15% 1.00% 0.89%
Equities 15.93% 9.19% 13.88%
benchmark 14.45% 7.78% 12.92%
variance 1.48% 1.41% 0.96%

Table 3: 2016–17 SIS Performance versus CPI Objectives (as at 30 June 2017)

Investment Strategy CPI Objective Investment Horizon Target Return

% pa

Actual Return

% pa

Over (+) /Under(-) Outperformance % pa
Capital Stable CPI + 2% p.a. 3 Years 3.5 4.3 + 0.8
Balanced CPI + 3% p.a. 5 Years 5.0 8.6 + 3.6
Growth CPI + 3.5% p.a. 7 Years 5.6 9.4 + 3.8
Equities CPI + 4% p.a. 10 Years 6.4 5.2 -1.2

 2016–17 Asset Allocation

Table 4: 2016–17 Capital Stable Standard Investment Strategy

Common Fund Allocation (%) 2017 Allocation (%) 2016
Neutral Period End $m Neutral Period End $m
Australian Shares 10.0% 10.0% $11.52 11.0% 11.1% $8.15
Overseas Shares 8.0% 8.4% $9.67 8.0% 6.3% $4.62
Listed Property Securities 10.0% 9.6% $11.09 7.5% 7.8% $5.70
Long-term Fixed Interest 15.0% 15.0% $17.22 15.0% 15.4% $11.28
Short-term Fixed Interest 26.5% 26.7% $30.74 28.2% 28.5% $20.94
Overseas Fixed Interest 12.5% 12.1% $13.95 11.3% 11.6% $8.55
Cash 18.0% 18.2% $20.96 19.0% 19.3% $14.19
TOTAL 100.00% 100.00% $115.15 100.00% 100.00% $73.43

Table 5: 2016–17 Balanced Standard Investment Strategy

Common Fund Allocation (%) 2017 Allocation (%) 2016
Neutral Period End $m Neutral Period End $m
Australian Shares 19.0% 19.1% $42.38 21.5% 22.0% $45.16
Overseas Shares 16.0% 16.9% $37.46 16.0% 12.8% $26.23
Listed Property Securities 20.0% 19.3% $42.96 15.0% 15.8% $32.34
Long-term Fixed Interest 22.0% 22.0% $48.83 23.5% 24.5% $50.14
Short-term Fixed Interest 7.0% 7.0% $15.70 8.5% 8.7% $17.90
Overseas Fixed Interest 12.0% 11.6% $25.90 11.0% 11.5% $23.61
Cash 4.0% 4.1% $9.01 4.5% 4.7% $9.53
TOTAL 100.00% 100.00% $222.24 100.00% 100.00% $204.91

Table 6: 2016–17 Growth Standard Investment Strategy

Common Fund Allocation (%) 2017 Allocation (%) 2016
Neutral Period End $m Neutral Period End $m
Australian Shares 29.0% 28.9% $60.38 32.0% 33.5% $66.62
Overseas Shares 24.0% 25.1% $52.45 24.5% 20.0% $39.79
Listed Property Securities 20.0% 19.2% $40.10 15.0% 16.1% $32.05
Long-term Fixed Interest 12.5% 12.4% $25.89 13.7% 14.6% $28.96
Short-term Fixed Interest 4.5% 4.5% $9.42 4.8% 5.0% $10.02
Overseas Fixed Interest 6.0% 5.8% $12.08 5.5% 5.9% $11.70
Cash 4.0% 4.1% $8.41 4.5% 4.8% $9.44
TOTAL 100.00% 100.00% $208.73 100.00% 99.90% $198.58

Table 7: 2016–17 Equities Standard Investment Strategy

Common Fund Allocation (%) 2017 Allocation (%) 2016
Neutral Period End $m Neutral Period End $m
Australian Shares 55.0% 53.8% $42.12 55.0% 61.0% $43.32
Overseas Shares 45.0% 46.2% $36.16 45.0% 39.0% $27.66
TOTAL 100.0% 100.0% $78.28 100.0% 100.0% $70.98

Data for the past five 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 Public Trustee
  2016-17 2015–16
Number of instances 78 50

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

Appendix: 2016-17 PT Services

Table 8: 2016-17 PT Services

2016-17 2015–16
Documents prepared (including during home visits)  
New Wills 684 573
Revised Wills 1055 1217
Total Wills 1739 1790
Enduring Powers of Attorney (new and revised) 456 335
Documents prepared during home visits  
Number of home visits 202 195
Wills (new and revised) 132 101
Enduring Powers of Attorney (new and revised) 31 18
Deceased estate administration  
New cases 532 702
Completed estate matters 661 635
Estates currently under administration 1 136 1 163
Grants of probate and administration received for the period 410 452
Unclaimed money balances – finalised at 30 June, payment early next period  
Number of unclaimed balances paid to DTF 43 20
Value of unclaimed balances paid to DTF $2.9m $166 822
Annual taxation returns    
Taxation returns completed 7 166 6 946
Personal estate administration  
Total number of personal estates under administration (including SACAT orders, court awards and Powers of Attorney) 4 324 4181
Number of new customers under SACAT Orders 438 341
New court-award customers 28 33
Total funds received from new court awards $12.7m $5.9m
New Power of Attorney customers 34 33
Number of in-person meetings with Personal Estates Branch customers 642 509
Court-awarded funds under administration (includes court award customers and court award trusts) $416.4m $387.2m
Reduced fee threshold $4 850 $4 800
% of customers under administration from whom no fees were collected 15.7% 17.8%
Trust activity  
New trusts 118 114
Trust matters finalised 196 127
Trusts on hand at 30 June 1 362 1 437

 

  2016-17 2015–16
Trusts for children under the care of the Minister  
Trusts for children under the care of the Minister for Communities and Social Inclusion on hand at 30 June 41 26
Completed trusts for children under the care of the Minister for Communities and Social Inclusion 3 3
Litigation guardian appointments  
Number of next friend/litigation guardian matters on hand 62 69
New litigation guardian customers 27 25
Private administrators and private managers – review of financial statements    
Private administrators appointed under the Guardianship and Administration Act 1993 1 303 1 262
Private managers appointed under the Aged and Infirm Persons’ Property Act 1940 170 160
Alternate executor administrations pursuant to a court order 300 379
Customer financial services activity             
Funds under administration (including superannuation) $1 127.3m $1 008.9m
New funds invested for the reporting period $165.4m $78.1m
Funds redeemed for the reporting period $93.1m $81.8m
Total Common Fund trades for the reporting period $1 935.2m $1 378.9 m
Distributions to customers $46.7m $36.9m
Total number of payments made 411 036 410 095
Total value of payments made $285.6m $290.2m
Total customer funds receipted value of pensions included $315.7m $74.2m $268.5m $71.3m
Total value of real estate properties held $333.2m $312.5m
Total value of managed customer assets $1 552.7m $1 393.5m

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

Appendix: Audited financial statements 2016-17

Audited financial statements 2016-17 including corporate and customer information can be found here. (PDF 5mb)

Access full 2016-17 Public Trustee Annual Report here (PDF 5 mb)