Investment of funds for financial management customers
Financial Management Common Fund
The Financial Management Common Fund is made up of funds owned by customers whose financial affairs are directly managed by us, as well as the funds of many customers whose affairs are managed by a private manager.
NSW Trustee and Guardian is responsible for management of the Financial Management Common Fund.
We outsource elements of the fund’s investment management to Blackrock Investment Management Australia, which is part of the world’s largest fund manager, the Blackrock group.
Citigroup Pty Ltd is the master custodian for the custody, compliance, transfer and accounting functions of the Common Fund.
The Financial Management Common Fund is split into the Access Fund and two diversified investment funds.
Access Fund
The Access Fund is an interest-bearing, working account for customer transactions.
It invests money on behalf of customers in cash and short-term money market securities. Interest is calculated on the closing daily balance of the account and paid at the end of December and June.
The accounts of customers that make up this fund are similar to standard retail bank accounts, through which every day banking transactions happen, including receiving and paying money.
Diversified investment funds
NSW Trustee and Guardian’s funds management program supports our customers’ investments to be diversified to reflect the amount of money available for investment, and the amount of money available for their individual needs.
The structure of the two investment funds provides customers with access to a full range of asset classes, allowing for appropriate diversification and risk management.
FUND |
PROFILE |
OBJECTIVE |
---|---|---|
INCOME FUND |
To provide customers who have a slightly longer investment horizon but remain sensitive to capital loss with a higher expected return than cash. |
To generate income while maintaining low level investment risks over the medium term. |
FINANCIAL MANAGEMENT GROWTH FUND |
To provide customers who have a longer investment horizon and willing to accept the market volatility with a higher expected return through capital growth. |
To generate capital growth while accepting higher level investment risks over the longer term. |
Definitions
- private manager
A person appointed by the Supreme Court of NSW or the Guardianship Division of the NSW Civil and Administrative Tribunal to manage the financial affairs of a person who cannot do so themselves.