The Public Trustee€¦ · During 2017-18, 72% of the Public Trustee staff completed Performance...

The Public Trustee 2017-18

Annual Report

The Public Trustee 211 Victoria Square Adelaide SA 5000

GPO Box 1338 Adelaide SA 5001 [email protected]

Contact phone number 08 8226 0200 Contact email [email protected]

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

Date presented to Minister: 21 September 2018

2017-18 ANNUAL REPORT for the Public Trustee

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Contents

Contents .................................................................................................................... 3

Section A: Reporting required under the Public Sector Act 2009, the Public Sector Regulations 2010 and the Public Finance and Audit Act 1987 ................. 4

Agency purpose or role ..................................................................................................... 4

Objectives ......................................................................................................................... 4

Key objectives of the Public Trustee and their relationship to Government objectives ....... 4

Agency programs and initiatives and their effectiveness and efficiency ............................. 6

Legislation administered by the agency ............................................................................. 8

Organisation of the agency ................................................................................................ 9

Other agencies related to this agency (within the Attorney-General’s area/s of responsibility) .................................................................................................................. 10

Employment opportunity programs .................................................................................. 10

Agency performance management and development systems ........................................ 10

Work health, safety and return to work programs of the agency and their effectiveness .. 11

Work health and safety and return to work performance .................................................. 11

Fraud detected in the agency .......................................................................................... 11

Strategies implemented to control and prevent fraud ....................................................... 12

Whistleblowers disclosure ............................................................................................... 13

Executive employment in the agency .............................................................................. 13

Consultants ..................................................................................................................... 13

Contractors ...................................................................................................................... 14

Financial performance of the agency ............................................................................... 15

Other information requested by the Attorney-General or other significant issues affecting the agency or reporting pertaining to independent functions ............................................ 16

Section B: Reporting required under any other act or regulation ..................... 17

Section C: Reporting of public complaints .......................................................... 25

Appendix 1: 2017-18 The Public Trustee services .............................................. 26

Appendix 2: Audited financial statements 2017-18 ............................................. 28


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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 ourcustomers.

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 agreedfiscal 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.


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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 andprocedures.

• Investigate options to improve the use of AGD and across-government ICTinfrastructure.

• Create an electronic suggestion box and utilise "great ideas" program to generateideas 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, includingconsideration of improved telephone call management.

• Restructure how cases are managed in Estate Services to remove single point offailure.

• Improve external agency collaboration by working with Centrelink, registries,Australian Taxation Office, banks, Correctional Services (prisons), Office of thePublic Advocate, and South Australian Civil and Administrative Tribunal.

• Improve information and service delivery at point of initial customer contact.


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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:

o benchmark to competitors (competitor scan)o present options for any proposed changeso assess feasibility and cost recoveryo consider business model for Wills.

• Develop performance reporting - transparent key performance indicators, relevantitems to measure.

• Complete all audit and Independent Commissioner Against Corruption findings bythe due dates.

• Deliver outcomes in accordance with the Charter and Performance Statement asagreed 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 toprepare Wills

232 202

Effectiveness/Efficiency Indicators 2017-18 2016-17

• Customer satisfaction rating out of 5 with Willmaking services

4.82 4.78

• Wills customers who would recommend the PublicTrustee

94% 93%


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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 deceasedestate administration services

3.74 3.9

• Deceased estate administration customers whowould 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 customers468 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 customersand their representatives

3.83 4.03

• Personal financial administration customers whowould 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


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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 executors1 828 1 773

• Matters referred to SACAT for non-compliance withreporting requirements

142 90

• Information sessions held for newly appointedadministrators to explain their responsibilities

15 14

Effectiveness/Efficiency Indicators 2017-18 2016-17 • Feedback from information sessions Excellent/very

good Excellent/very

good

Appendix 1 provides additional detail on services provided by the Public Trustee.

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.


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Organisation of the agency

The Public Trustee

Business & Client

Financial Services

Customer Services

Client Financial Services

Corporate Services

Personal Estates

EstateServices

Governance and Compliance

Taxation Services

Legal Services

Investment Services

Investment Advisory Committee

Audit & Risk Management Committee

Legal Officer

Deceased Estates

Information and Communications

Technology

Wills & Related Services

Customer Relationships

Team

RegulatIon of Private Financial Administrators

Strategic Projects

Trusts

Information and Communications

Technology Committee


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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.


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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

https://data.sa.gov.au/data/organization/attorney-general-s-dept


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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, increasedcommunication, 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 operationalaspect 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 businesscritical 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 realestate/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 ManagementForum and Investment Advisory committee;

• Ensuring delegated authorities approve wages and overtime, and review materialexpenditure against delegated authorities; and

• Ongoing monitoring of suspense account levels to ensure appropriate action isundertaken to address variances.


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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.


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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).


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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; i. 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%

ii. For beneficiaries of estates administered by the Public Trustee where there is nochange of ownership of the assets and when funds would otherwise be distributed noentry fee will apply except to additional funds invested, in which case the abovereduced scale for the beneficiary investors will apply.

iii. 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.


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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.


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

Cash Common Fund The permitted classes of investment are:

a. Cashb. Australian Fixed Interest

Qualifications on these investment classes: i. All investments shall be denominated in Australian dollars.ii. Fixed rate securities shall not exceed three years to maturity.iii. Floating rate securities shall not exceed 10 years to maturity.

The following class of investment is explicitly excluded: iv. Derivatives.

Short-term Fixed Interest Common Fund The permitted classes of investment are:

a. Cashb. Australian Fixed Interest

Qualifications on these investment classes: i. All investments shall be denominated in Australian dollars. The fund’s liquidity

requirements will be managed by an investment in the Cash Common Fund. ii. Fixed rate securities shall not exceed five years to maturity.iii. 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: v. Derivatives.

Long-term Fixed Interest Common Fund The permitted classes of investment are:

a. Cashb. Australian Fixed Interestc. Inflation-linked Securities

Qualifications on these investment classes: i. All investments shall be denominated in Australian dollars.ii. The fund's liquidity requirements will be met by investment in the Cash Common

Fund.iii. Fixed rate securities and inflation-linked securities shall not exceed 15 years and 25

years to maturity, respectively.iv. Inflation-linked securities shall be restricted to consumer inflation or average weekly

earnings-linked securities issued by the Commonwealth Government, StateGovernments or the Government of the Northern Territory, and securities issued byother parties where the payments to holders of the securities are guaranteed bythese governments.

v. Security lending arrangements in relation to authorised investments are permitted.

The following class of investment is explicitly excluded: vi. Derivatives.


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Australian Shares Common Fund The classes of investment are:

a. Cashb. Australian equitiesc. Derivatives

Qualifications on these investment classes: i. Fund liquidity requirements shall be met by investment in the Cash Common Fund.ii. Investments in Australian Equities shall be limited to securities of companies and

trusts listed on the Australian Stock Exchange, and to unlisted securities incompanies and trusts where the intention is for these securities to be listed within sixmonths of investment.

iii. Small capitalisation companies, defined as those outside the Top 100 Sector of theAustralian Stock Exchange's All Ordinaries Index, shall not exceed 20% of the fund'sassets.

iv. Underwriting is permitted only where the Public Trustee has made a firm subscriptionto a new issue and the amount underwritten does not exceed the subscriptionamount.

v. Underwriting as an investment instrument is prohibited.vi. Security lending arrangements in relation to authorised investments is permitted.vii. Investments in financial derivatives specifically relating to the investments of the fund

are permitted for the purpose of:vii. investment of funds; orviii. hedging or otherwise managing the risk of the fund.

Property Common Fund The classes of investment are:

a. Cashb. Propertyc. Infrastructure

Qualifications on these investment classes: i. Fund liquidity requirements shall be met by investment in the Cash Common Fund.ii. Investments in property comprise securities of companies and trusts that are either

listed or unlisted.iii. Investments in listed and unlisted infrastructure trusts are permitted in the fund.iv. 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 subscriptionamount.

v. Security lending arrangements in relation to authorised investments are permitted.vi. Investments in financial derivatives specifically relating to the investments of the fund

are permitted for the purpose of:ix. investment of funds; orx. hedging or otherwise managing the risk of the fund.

Overseas Shares Common Fund The classes of investment are:

a. Cashb. International Equitiesc. Derivatives.


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Qualifications on these investment classes: i. Fund liquidity requirements shall be met by investment in the Cash Common Fund.ii. 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 debtinstruments.

iii. Trading in inter-bank or over-the-counter markets shall occur only in those marketswhich have been approved by the relevant government agencies of the country inwhich the market is conducted.

iv. Investments in collective investment schemes, the primary mandates of which are theholdings of smaller companies and emerging markets securities, shall not exceed25% and 15% of the assets of this common fund, respectively.

v. Underwriting is permitted only where the Public Trustee (either directly or via anappointed custodian) has made a firm subscription to a new issue and the amountunderwritten does not exceed the subscription amount.

vi. Security lending arrangements in relation to authorised investments are permitted.

Overseas Fixed Interest Common Fund The permitted classes of investment are:

a. Cashb. International Fixed Interest and inflation linked securitiesc. Derivatives

Qualifications on these investment classes: i. The fund's liquidity requirements shall be met by investment in the Cash Common

Fund.ii. 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 debtinstruments.

iii. All fixed income securities must be rated by recognised rating agencies and at least90% of the fund shall comprise investment-grade securities.

iv. Investments in financial derivatives specifically relating to the investments of the fundare 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.


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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.


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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




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Section C: Reporting of public complaints

Public complaints received by the Public Trustee 2017-18 2016–17

Number of instances 76 78





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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


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2017-18 The Public Trustee Services (continued)

2017-18 2016-17

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





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Appendix 2: Audited financial statements 2017-18

The Public Trustee’s annual Financial Statements for the year ended 30 June 2018 appear on the following pages and include corporate and customer information.

The Public Trustee€¦ · During 2017-18, 72% of the Public Trustee staff completed Performance...

Documents

Transcript of The Public Trustee€¦ · During 2017-18, 72% of the Public Trustee staff completed Performance...