Page 91 - Suncorp_Review

Suncorp Group Limited Annual Report 2010/11 89

8.9 Life – Managed assets, trustee activities and mortgage investments

Arrangements are in place to ensure activities relating to asset management, trusteeship and mortgage investments are managed separately from the Life operations of the Suncorp Group.

8.9.1 Managed assets and trustee activities

Companies within the Suncorp Group are used to manage assets of subsidiaries, superannuation schemes and unit trusts of the Suncorp Group as well as external clients. Companies within the Suncorp Group also undertake trustee activities. The assets under management (AUM) of fund managers, funds under administration (FUA), and securities supervised (SS) by trustee companies are listed in the table below:

2011 2010 Trustee/fund manager FUA/AUM/SS $m $m

Asteron Retirement Investment Limited & Asteron Trust Services Limited 1 FUA 299 344 SIS Super Pty Ltd – trustee for the Suncorp Staff Superannuation Fund 2 FUA – 703 Suncorp Portfolio Services Limited 3 FUA 5,996 4,716 Suncorp Metway Investment Management Limited 4 AUM – 389 Tyndall Investment Management Limited 4 AUM – 5,168 Tyndall Investment Management New Zealand Limited 4 FUA – 2,860 Tyndall Investment Management New Zealand Limited 4 AUM – 1,042 New Zealand Guardian Trust Company Limited (NZGT) 5 AUM – 2,831 New Zealand Guardian Trust Company Limited (NZGT) 5 SS – 43,014

Notes

1 Trustee and manager for a number of wholesale, superannuation and investment funds. The assets and liabilities of these trusts and funds are not consolidated in the fnancial statements as the Suncorp Group does not control these entities.

2 Trustee for Suncorp Staff Superannuation Fund. All assets and liabilities of Suncorp Staff Superannuation Fund have been transferred to the successor fund Suncorp Master Trust on 30 June 2011. 3 Trustee for various internal superannuation funds.

4 The Suncorp Group’s interest in these entities was disposed of as at 1 March 2011. 5 The Suncorp Group’s interest in NZGT was disposed of as at 14 March 2011.

8.9.2 Mortgage investments

The Suncorp Group has mortgage loan investments of $63 million (2010: $85 million) through an investment fund which the Suncorp Group controls. In support for these mortgage loan investments, a $72 million drawdown facility was in place and was fully utilised as at 30 June 2010. The facility automatically reduces with each loan repayment and therefore equates to the outstanding loan balance at any point in time. The facility was secured over the assets of the investment fund and up to $24 million of the assets of Asteron Life Limited (New Zealand) shareholder fund. During the year ended 30 June 2011, the facility was replaced with a new facility funded from within the Suncorp Group and as such, the assets of the investment fund and Asteron Life Limited (New Zealand) shareholder fund are no longer pledged as security in favour to parties external to the Suncorp Group.

Suncorp Group and Corporate Disclosures 9. Revenue

9.1 Investment revenue

CONSOLIDATED

2011 2010 $m $m

Interest income 827 799 Trust distributions 36 103 Dividends 159 52 Changes in fair value of General Insurance fnancial assets 56 151 Changes in fair value of Life fnancial assets 250 429 Net profts on derivative and other fnancial instruments:

realised – 3 unrealised 12 17 Rental income from investment property 18 16 Total investment revenue 1,358 1,570