The Public Trustee has five standard investment strategies where customer funds are invested.
Investments can be made in one strategy, or across two or more.
Each strategy provides a different balance between growth and defensive assets - this means the strategy can reflect individual needs and circ*mstances.
Each of the strategies has diversified investments within our seven common funds, which are:
- cash
- short-term fixed interest
- long-term fixed interest
- overseas fixed interest
- Australian shares
- overseas shares
- property.
Cash is a very low risk strategy which is designed to achieve a return comparable to the 90 day bank bill interest rate.
Capital Stable is a low risk diversified strategy designed to achieve an attractive level of income as well as some capital growth over the medium to long term.
The mix with this strategy over time is 34% growth assets to 66% defensive assets.
This strategy is designed for customers whose circ*mstances require investment for more than two years.
A Balanced investment strategy is a medium risk strategy designed to achieve a combination of reasonable income and sound capital growth over the medium to long term.
The mix with this strategy over time is 61.5% growth assets and 38.5% defensive assets.
This strategy is designed for customers whose circ*mstances require investment for more than three years.
A Growth investment strategy is a medium to high-risk strategy designed to achieve capital growth together with a small level of income over the medium to long term.
The mix with this strategy over time is 77% growth assets to 23% defensive assets.
This strategy is designed for customers whose circ*mstances require investment for more than five years.
An Equities investment strategy is a relatively high-risk strategy which aims to achieve an attractive level of capital growth over the long term, together with a small level of income.
Investments are diversified between Australian and overseas shares.
A small proportion of the assets may be invested in a cash fund.
The shares are approximately 55% Australian to 45% international over time.
This strategy is designed for customers whose circ*mstances require investment for more than ten years.
It's important to remember that although each portfolio is well diversified and soundly managed, returns will be subject to market variations, and there is a risk that the value of the portfolio may decrease.
