8.—9

18

It will be seen that a lower rate of commsision has been fixed after a value of £5,000 has been reached. The policy of reducing charges where possible has also been extended to clients seeking advances by way of loans from the Office, and the former scale of fees for the preparation, renewal, extension, or rearrangement of mortgages has been reduced by one-third. This reduction does not affect solicitors entrusted with legal work at the request of clients ; they are entitled to charge their usual fees, and the reduced rates will apply only in those cases where the mortgages, &c., are prepared by the Public Trustee. The Public Trustee's charges now in force compare favourably with those of companies carrying on a similar class of business in New Zealand. Moreover, the scale charges are the maximum and may be reduced in suitable cases. Government Superannuation Funds. 20. The following table shows the value of the investments and funds administered by the Public Trustee on behalf of the four large Government superannuation funds on the 31st March last and the increase in the value of such investments for the year : — Value as at Increase for 31st March, 1926. Year. £ £ National Provident Fund .. 1,380,532 212,695 Public Service Superannuation Fund .. .. .. 2,358,715 122,849 Teachers' Superannuation Fund 1,035,537 60,892 Government Railways Superannuation Fund .. .. 826,058 121,895 £5,600,842 £518,331 The Public Trustee attends to the collection of interest on the investments of all of the above-mentioned funds. All moneys not required to meet current claims on the funds are invested in first-class securities as from the Ist of the month following the date the moneys are received, so that the funds are very closely invested. In addition to collecting the interest the Office attends generally to the work of ensuring that the securities are adequately protected. It is therefore necessary for the Public Trustee to see that insurances on securities are kept up to date, that rates and taxes are paid, and that the covenants contained in the mortgages are generally complied with. In the last connection it is frequently necessary to invoke the services of the Office Farm Property Inspectors, while those of the local representatives of the Public Trustee are continuous. No charge is made for arranging new investments, but for the other services of the Office a charge is made of 2§ per cent, on the income collected. With the exception of an occasional charge for services of a very special nature the commission of 2|- per cent, referred to is the only remuneration received by the Office. It will be seen, therefore, that this work is conducted by the Office at a very moderate cost to the respective funds. There are also four smaller Government superannuation funds administered by the Public Trustee, but all of these are invested ip the Common Fund. On the 31st March, 1926, the balances at credit of these funds were — £ Civil Service Act, 1908 .. .. .. .. 9,177 Deferred Pay (Naval) Account .. .. .. 25,241 Post and Telegraph Act, 1908 .. .. .. 3,345 Public Service Classification and Superannuation Act, 1908, section 31 .. .. .. .. 4,046 £41,8091