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PUBLIC TRUSTEE ACT 1995 - SECT 29

PUBLIC TRUSTEE ACT 1995 - SECT 29

29—Common funds

        (1)         The Public Trustee may establish one or more common funds—

            (a)         for the investment of money comprising or forming part of an estate under the control of the Public Trustee;

            (b)         for the investment of money on behalf of other classes of persons approved by the Minister.

        (2)         The Public Trustee must determine the classes of investments in which a common fund may be invested and may vary the classes from time to time.

        (3)         Money may not be invested in a common fund unless the classes of investment in which that money could be invested on separate account are the same as, or include, the classes of investment in which the common fund may be invested.

        (4)         The Public Trustee must keep an account showing the current amount for the time being at credit in the common fund on account of each investor.

        (5)         The Public Trustee has a discretion to realise investments in which money from a common fund has been invested and to reinvest the money in investments of an appropriate class.

        (6)         The Public Trustee may withdraw from a common fund any amount at credit in the common fund on account of an estate—

            (a)         for the purpose of reinvestment; or

            (b)         for the purpose of defraying liabilities that are lawfully chargeable against that estate; or

            (c)         for the purpose of making a payment to a person who is beneficially entitled to that payment; or

            (d)         for the purpose of making any other payment in accordance with this or any other Act.

        (6a)         The Public Trustee may withdraw from a common fund an amount at credit in the fund on account of a class of persons referred to in subsection (1)(b) for the purpose of recovering commission, fees or expenses fixed by regulations as payable to the Public Trustee by persons of that class.

        (7)         After deduction of charges—

            (a)         income arising from the investment of a common fund must be divided between the investors in proportion to the amounts invested and the period of each investment; and

            (b)         any profit or loss of a capital nature arising from investment of the fund must be divided between the investors in proportion to the amounts invested.

        (8)         The Public Trustee must value each common fund (including the investments in which the fund is invested) as at the first business day of each month and, if the Public Trustee thinks fit, as at such other times as may be appropriate according to the nature of the particular fund.

        (9)         Investments in and withdrawals from a common fund must be effected on the basis of the valuation last made under subsection (8).

        (10)         The Public Trustee may charge against each common fund a management fee fixed by the Public Trustee in respect of each month of the Public Trustee's management of the fund.

        (11)         The management fee charged against money invested in a common fund on account of an estate must not exceed one-twelfth of 1.2% of the value of the fund attributable to investment of the estate as at the first business day of the month.

        (12)         The Public Trustee may not increase a fee charged in respect of management of a common fund except after giving to each investor (other than an estate) not less than one month's notice in writing of the new fee.

        (13)         Nothing in this section limits or affects the operation of section 28.

        (14)         Money not otherwise held in trust by the Public Trustee is while invested in a common fund held by the Public Trustee in trust for the investor.