Whether your needs are short term or long term, we’ve got an investment solution to meet your circumstances. Public Trust has a long term AA credit rating from Fitch Ratings — we’ve been taking care of Kiwis and their money for almost 150 years.
If we’re already the trustee of an estate or trust, the property attorney under an EPA or property manager under the PPPR Act, Public Trust can also act as your investment partner.
Our investment options are not available to members of the public, and the Diversified Funds and the Personalised Portfolio Service are not regulated offers under the Financial Markets Conduct Act 2013.
We offer two levels of service to meet your investing needs:
1. Diversified funds
Invest in a range of Public Trust managed funds with a minimum investment of $5,000.
Funds are chosen using our specialist in-house investment planning tool, which is based on what is appropriate for most people in a certain group or class (it is not tailored to your individual circumstances).
The funds are portfolio investment entities (PIEs), with tax advantages including tax on investment being capped at 28%.
Funds are invested in assets such as shares, bonds, and cash. Each of these funds invests in a single asset class, for example global shares.
Further information on the diversified funds can be found in:
Our investment beliefs provide a basis for the strategic management of the investment portfolios under our care. They are a guide for decision making, and provide an insight into how we invest your funds.
Implications for the Portfolio
Investment Belief 1
An effective governance and decision making structure adds value by seeking to preserve and create long term financial security and sustainability of our customers.
Clear lines of accountability
Independent member of management investment committee
Management delegations around portfolio management decisions
Investment Belief 2
Portfolio management should be focused on current and future beneficiaries’ individual specific investment objectives, including risk tolerances and investment horizons.
Products should be a suitable proposition for current and future beneficiaries
Product suite should be reviewed
Investment Belief 3
Both the capital and income component of total return are relevant to the investment objective.
Expected income and capital generated from a portfolio should meet the needs of current and future beneficiaries
Asset Allocation and Markets
Investment Belief 4
Strategic asset allocation (SAA) is the dominant determinant of portfolio risk and return. A strategic asset allocation is likely to outperform an active short term approach.
Majority of risk and return in a portfolio is derived from the SAA
SAA is the most important decision
No belief around tactical or dynamic asset allocation
Investment Belief 5
Risk and return are interrelated — higher returns are only achievable through increased risk.
Greater exposure to growth assets will generate higher returns subject to increased risk
Growth profiles will generate greater returns
Investment Belief 6
Environmental, social and governance (ESG) factors impact investment returns and risk.
ESG considerations enhance a portfolio’s return and reduce risk
Asset Class Structures
Investment Belief 7
Investment markets are competitive and dynamic, with active returns very difficult to find and constantly changing source.
Financial markets are efficient
Passive approach to asset management
Only take active risk when we have a strong belief that we will be rewarded for it
Investment Belief 8
Costs and tax matter and need to be effectively managed.
Minimise, as far as possible, any cost leakage from the investment process so as to ensure that the income and capital beneficiaries are getting value for money