Good morning, everyone. People can hear me okay, can they?
Yep.
Yep, fabulous. All right. Well, welcome to this investor briefing on EQT Holdings Limited. It's been eight years since we have done one of these, and I can tell you eight years ago Philip and I did in quite different circumstances to today. So we're really looking forward to this morning talking to you about how the company's positioned, and what the opportunities are. I think it's a perfect time. There's a lot going on in the wealth industry, particularly in the trustee space, which you don't normally get to say that, but we do at the moment. Now I've got almost all the leadership team here this morning, and you're going to get to hear from most of them through the course of the morning.
I've also got a couple of our directors here, Catherine Robson over here, and Kevin Eley, who's probably known to many people here in Sydney, over here as well. So we're going to do some deep dives into different parts of the business, and so all I can suggest is you strap yourself in for three hours of the most exciting presentation on trusteeship, okay? So, right. So the agenda for today just, put that up quickly. Oh, I'm changing the slides. Correct. Right. Okay. So here's the agenda that we're going to walk through. Get an opportunity to ask questions at the end of each section, okay? And, if there's anything pressing in the middle, we'll you know, we might be able to handle that as well, but let's see if we can get through each presentation and then get questions at the end of each.
I'm going to start with an introduction and overview of the business. Here's the key dimensions of the business. Equity Trustees established in 1888, very auspicious year, and that makes us 136 years old. The group and some of the companies within the group date back 10 years earlier than that. The ANZ Trustees business dates back 10 years earlier. We're overseeing AUD 183 billion of assets as of 31 December 2023. Philip will update you on the quarter's funds shortly. That puts us number five in Australia, so ignoring the two government enterprises, the Future Fund and the Commonwealth Superannuation Corporation business. So behind the two big industry funds and Perpetual and Insignia, so it's a big footprint across Australia. Market cap just under AUD 800 million.
We've got offices in all the mainland states, with a big presence, particularly in Melbourne and in Adelaide, and also Perth, I should say. Just under 500 staff. We're supporting more than 200 fund managers, superannuation fund promoters, and other corporates. Importantly, we're protecting the wealth of 850,000 beneficiaries, investors, members of superannuation funds, and other types of clients, and that is the most important thing that we do. So that's a little snapshot on the company. If I look at the typical value chain in the wealth market, trusteeship sits at the apex of that, okay? So it's our single focus in this business is trusteeship. Now, we do do some other things, so we obviously have an asset management capability. That is an important part of trusteeship, particularly for our private client business. It's a fit for purpose, and asset management capability.
We market it into the charitable sector where it really has a strong application. We have an advice function, and Ian will talk a little bit about that. We typically use that on our own client base. We don't typically market it to the market. It's got a very older demographic, as you might expect. We provide custody services. We've got a couple of custody licenses. We only provide custody services for real assets. We are shifting all of the, if you like, marketable, tradable type securities that we have custody across to HUB24. That'll be complete by the end of the year, and so we'll only have real assets, custody of real assets. Everything else will be outsourced.
We don't provide any administration or registry services at all other than in our trustee wealth services business where we do that in-house, but everything else in the corporate and superannuation trustee business is outsourced on the administration and registry side. That's a picture of what we do at a high level. If I talk about the performance, I said that we last did this eight years ago, so this graph takes you back those eight years. It's been a journey, a good journey, I should say. The performance of the company, you can see there at 122% over that time period versus the ASX. I look at the journey in sort of three stages.
The first stage is setting the foundation, so we had to capitalize on the ANZ Trustees acquisition that was done in 2014, and that really started to provide benefits to us in those early years there. We did a major operating model review at that point in time, which sort of right-sized the business, we felt, at that time. Acquired a couple of smaller companies in Sandhurst's business and the OneVue RE business, which have been extremely valuable, for us over the journey. That was the first stage. The second stage is really we started some new businesses, and not all of those have been successful, but if I just walk through them, superannuation trusteeship has been spectacularly successful in the last five years for us. We've got small businesses in the debt capital markets and in custody and real assets.
Both of those are profitable, growing quite quickly, but off very small bases. We entered the U.K. and Ireland with our corporate trust business, and that hasn't proved to be successful for a whole range of reasons, and we're at the tail end of exiting out of that now. More recently, in the last couple of years, and what we see over the next year or two is major developments, in the technology space, which Phing Lee, our Chief Technology Officer, will talk to you about, and the acquisition of AET is really transformative for the trustee wealth services business, and I'm sure Ian will cover that in some detail for you. I'll just look at the performance, on a dividend front. You can see there since that time period we've increased or maintained the dividend in the COVID year.
I think we're the only financial services company to do that, increased it in every other year. This is a company that produces a, you know, a healthy, consistent level of free cash flow, and we have an ability to deliver it to shareholders in dividends. Now, the purpose of the company, it's clear, it's just one purpose, and that is to help people take care of their future. That's what we're doing in every position that we've got. It's an inspiring purpose for the people that work for the company. For many, it's a vocation. There are many people in that have worked into this business for 20, 30 years and longer, so it is a vocation for many, particularly in the private client business. It's a great purpose. It's the reason the company was established, in 1888, and it stands today.
Our vision hasn't changed over the last eight years, and that's to be the leading trustee in Australia. I think we're well on the way to achieving that. If I just look at our values, they're simple, but they're powerful values, and everyone in the company, I think, understands them, so that's unusual. We keep it simple because I think then people can, you know, they can understand, they can remember, right, what's important to us, right? And so trust, obviously, it's just earned, basically, and that's what it is, that's what you've got to do, consistent delivery of service to your clients. We think of trusteeship as a privilege, to be appointed into that position. As I said before, it's at the apex of good governance.
You've got complete control in many circumstances over people's wealth, so it is a privilege that requires enormous accountability, and we strive to empower our clients when we can, and certainly our employees, so we have a very delegated model allowing our employees to make judgments, and look after their clients as best they can. If I move on to our T4 targets, you see us report on these each year. Again, we've held this framework for the last eight years or seven years or so. The first one is improving client satisfaction. I think we have really high client satisfaction levels. Lifting employee engagement is the second one. Again, our employees, our workforce is highly engaged and enabled.
Growing shareholder value, obviously, is an interest to everyone here in this room and deepening our community impact, and we have a unique ability to do that given the size of our philanthropic business within trustee wealth services. So I think this has held us in great stead in terms of balancing the, if you like, the demands and the requirements of each of these stakeholders in the company, and if we can meet them all, it makes it a very healthy company. I just want to talk about our assets, the way we think about it. Really, there's four assets. The most important one is there on the left-hand side, the people. That is the one that is most difficult for our competitors to replicate. It's the one we are most proud of, our ability to attract people and then retain them. They're experienced specialists in trusteeship.
They're industry leaders. I'm sure you'll see that as you hear from them this morning. Our licences are very important. We've got a very broad suite, suite of licences. In fact, no one has the same extent of licences that we do on trusteeship, so that is very key for our business. The brand, it's the Equity Trustees brand, 136 years old. It is synonymous, as the name says, with trust. The equity aspect of that name is also very important. Trusteeship is about equitable treatment of beneficiaries, and we've been untarnished in recent years. There's been a lot of pressure in the wealth management industry in recent years following the Royal Commission, and we have come through that, I think, with flying colours.
Balance sheets in great shape, as Philip would always tell you at each half year, so low gearing, 11.5%, ample cash, liquid assets, and undrawn committed debt should we need to do anything, so we've got a lot of flexibility sitting on the balance sheet. I just move on to some of our clients. We're very proud of our client base. Here's just a selection of the names. On the left-hand side there, some of the Australian fund managers. There's us leading Australian equity managers, fixed income managers, hedge fund managers. We're in every asset class. Leading global fund managers out of the U.S., out of Europe, you know, out of the U.K. and South Africa as well. On the superannuation side, fast-growing platforms as well as some longer-term players that have been in the superannuation business for decades.
On the right-hand side there, charitable foundations and community trusts. You know, Banjima is a community group in the Pilbara where we have most of our clients in the native title trust business. And then I'll just mention there the three Perpetual Charitable Trusts, the Sylvia and Charles Viertel Foundation, which is out of Queensland, a AUD 250 million foundation, and two big ones down in Melbourne, William Buckland and the Felton Bequest. And I'll just give you an idea. The Felton Bequest is, I think, 1908 when it was established. It's probably funded, you know, two-thirds of the artwork in the National Gallery of Victoria, so very important charitable foundations. Let me introduce the board of directors, chaired by Carol Schwartz. Carol's been with us for four years.
You may be aware she's also on the RBA board, had a stellar career in the real estate sector and a little in retail as well. Was named as Australia's Philanthropist of the Year, I think, two years ago or a year ago, so she's an excellent chair of the company. What I want to highlight here is the mix of the duration we have. So, Kevin is our longest-serving director. He chairs the board audit committee and has done for about five or six years, Kevin, I think. And Catherine Robson chairs our board risk committee, and also chairs our superannuation subsidiary company as well, and with no disrespect to the other directors, two of our hardest-working directors here in the room.
So, but the expertise here, it's we've got expertise on the legal side, on funds management, on finance, on advice, on regulation, technology, and strategy, so I think, you know, it's a really highly functioning board, and we're very well served by it. The leadership team. Let me just walk through who you're going to hear from today. You're going to hear from Andrew Godfrey, from Georgie Taylor, from Ian Wesley, from Philip, as you always will, from Owen, our Chief Risk Officer, Phing Lee, our Chief Technology Officer, and you'll also hear from a couple of Ian's leadership team and a couple of Andrew's leadership team, and he'll, Ian and Andrew will introduce them later. Darren is here in the room, and so he heads up our asset management business, enormous experience in asset management. We're not going to cover asset management today.
I'm figuring most people in the room got a good understanding of it, but it is covered in the slide deck in the appendix just for your information, and happy to take any questions, myself or Darren, over the course. Look, the most notable thing here, if you look on the left-hand side, Andrew, Georgie, and Samantha all joined us in the last two years, and then we moved to Ian, who's been here forever. I think Ian, prior to Ian coming on board, I think you were selling photocopiers, weren't you? Yeah, a long time ago. Well, I think it was—I mean, the photocopiers don't seem to break down now, so I think it's a good move to get out of that and move into trusteeship, but Ian clearly is our most experienced professional in trusteeship.
I'm amazed by the knowledge that he has across an incredibly complex business. So, Andrew, you know, close to 30 years' experience in the superannuation markets primarily and an operational expertise that we haven't had in this organization before. Georgie joined us a year and a half ago, a baptism of fire coming on it, as we acquired AET and having to bring all those people on. She's spent almost 10 years at CBUS, so she's well acquainted with this industry. Samantha, experience at multiple, listed companies before coming here. Owen joined us, just on six years ago, from, Telstra Super. He's got previous experience, in the U.K. and, importantly, previous experience at APRA. Alicia joined us nine years ago with experience in the marketing of professional services in a complex environment, which is what we need.
Phing joined us 11 years ago and, as responsible for all of our technology in the business, has an intimate understanding of this business, which is second to none. So we're really well served. Now Philip is stepJodi down. This is the last time you'll see him in an environment like this, and I said at the half-year results, I just wanted to thank him for the enormous contribution that he's made to the business. We made an announcement yesterday of the appointment of a new CFO, Johanna Platt. She's joining us from currently at ISPT, but a longer history at Vanguard Australia, so really looking forward to her coming on board in July. So that's the team, a very capable team. Clearly, we've got a leadership position in the various markets in which we compete.
It's difficult for you guys to assess market sizes, in a lot of these areas, but, you know, on the responsible entity side and the superannuation side, clearly, we're the leader in providing these independent trustee services. We've got small businesses growing in the custody and real assets and the DCM and securitization business, and if you look at the trustee wealth services business, we've got a clear leadership position in health and personal injury and estate planning, probably equal of the size with the, with our main competitor in philanthropy, continuing trusts as well, and a solid position in, asset management. Now, this is a little busy, this slide, so let me just walk you through it. Start in the center circle, so the three main businesses. Trustee wealth services represents 59% of our revenue. That was less, obviously, prior to AET coming on board.
We were a little bit more equally balanced, but still, there's a very significant contribution from superannuation at 18% and the corporate trustee services side at 23%. If you just turn your eye to the left and look at corporate trustee services, it's primarily the RE or fund services business, as we call it, so it's 19% of the revenue. And then if you move to the right-hand pie, where it breaks up trustee wealth services revenue, you can see it's a very evenly distributed book of business, so the biggest piece is the Perpetual Charitable Trust for sole trustee where we are sole trustee at 16% and the health and personal injury business at 11%. So it's important, no subsegment there is greater than 19%, all right? So it's an increasingly balanced business. AET has added a lot to that in the process.
Now, this slide just talks about client concentration. Overseeing AUD 180 billion of assets, there's some big clients in there with a lot of money, right? And they've got big clients with a lot of money, and it can move quickly. So you will have seen in the last couple of years some movements of multi-billion-dollar types of accounts. This is trying to put in some perspective that the business isn't overexposed to very large clients sitting at the top level. So there are seven clients with more than 1% of the group's revenue and another 16 with 0.5%-1% of the group's revenue. And if you look in the corporate trustee portfolio, where we've had the big movements, currently, I think there are 18 managed investment schemes over AUD 1 billion.
You saw that we one of our clients lost an underlying mandate, one of their clients, in the last time period, which was quite materially in fund size and revenue. We don't have any of that exposure currently sitting in the portfolio. I want to sort of turn to the length of time and duration that we keep business. So, client turnover is very low. Now, there's a reason for that, and primarily is because once appointed as a trustee, there's not too many ways you're going to be removed from that appointment. Now, some of our clients are subject to funds flow, so if that's that middle column there talks about funds flow, and so our superannuation clients are subject to their own funds flow moving, all right?
And our fund services clients, our fund managers, are also subject to that funds flow, but the bulk of the business is not, subject to that, right? So if you particularly go into the areas of estate management, continuing trusts, Perpetual Charitable Trusts, they're not subject to funds flow, right? So and if you go to the final column there on the right-hand side, effectively, a trustee can only be removed if they voluntarily retire from a position or, and in some situations, if you look on an RE side, you need to retire and you need to have a unit holder vote to get that change to go through, right? You know, if I look at the debt and securitization side, it's really the maturity of a loan that brings the contract to an end.
I should say on the Super and the Fund Services side, these are not term-based contracts. Trustees typically do not enter into term-based contracts because it's not possible for a trustee to foresee something in the future and agree that they will they will terminate their own service at that point, right? So we don't have term-based contracts. If you go down through the Trustee Wealth Services business, you'll see most of those. It requires us to voluntarily retire or a court order to be made for us to retire, which is highly unusual, and it is highly unusual that we voluntarily retire from appointments.
We would do so if we don't think we're capable of doing it, if we don't think it serves the beneficiary's interests, for us to, to stay there, but that's a pretty unlikely scenario, so it is very sticky business, and Ian will talk a little bit more about the duration, particularly of the trustee wealth services business. So in summary, our focused specialist strategy has been crystal clear and is delivering results. You can see there, the leadership team have consistently executed on our plans. I'm really pleased that our client satisfaction levels and our employee engagement levels are so high, and the team is really focused on delivering over the next 2-3 years. We've got an incredible position in the market, and, we're looking forward to capitalizing on it. So I'm going to hand over to Philip, who's going to give you an update on Q3.
We might stop after Philip taking the questions.
Good morning, everyone. It's good to see you all again. I'm going to give you a quick third-quarter financial update, focused principally on a couple of key things. Firstly, something of a funds under management, FUMAS flows update, and then something of a synergy update. Let's start on the FUMAS front. Here you can see the FUMAS in recent years followed by the most recent half and quarter, and so in summary, it's a healthy bump of some AUD 11.2 billion in the last quarter or 6.1% up. We continue to see significant new business activity in both TWS and CTS, CSTS, although unsurprisingly, the market is a significant contributor to this increase as well. Notwithstanding, the business units continue to have good momentum. Let's take a bit more of a look at how that's transpiring through each of the businesses.
The top left here, you can see CSTS, up about AUD 6 billion in the quarter. Top right, that's on the corporate side, on the superannuation side, up about AUD 4.5 billion, continuing to see good net flows through most of our funds. TWS, up about AUD 700 million as well, and of course, that transpires into consequent increases in our asset management business as well. Turning now to integration and synergies. You can see the red vertical line there's now where we are. We've come on a quarter since we last reported at the half. Some of the key progress you can see in the last quarter, establishing this small APRA fund outsourcing model, continuing the closure of the SMSF and PMS business. You will recall we were exiting.
NavOne continuing trust implementation has gone well, and both Ian and Phing will give you a bit more of an update on the progress of the technology. Now, over the next 3-6 months, we expect to see the conclusion of the integration. We'll complete the outsourcing, close the SMSF and PMS businesses, hopefully by around June, and data migration should be 60%-70% complete. By November, we expect to be off the Insignia systems, exit of the platform business, and integration largely complete. You may recall this slide from the half. We've updated it in terms of the specific synergies. From a headline standpoint, there's no change at all.
The cost synergies and revenue synergies are what they are, but we have called out in the second row there under timing the potential for additional synergies in FY26, and these arise from a couple of reasons. Firstly, we don't like to make portfolio changes that might lead to a CGT increase of more than 2% in any year, so there'll be consequent changes as we continue to progressively review portfolios through 2025 and 2026 that will see some increase in synergies, and we also see some potential for further synergies in the health and personal injury book over longer periods of time. You'll also see on the slide down through the middle there that we've now transitioned around AUD 600 million to EQT common funds as at the end of March 2024.
And then finally, just turning to the market impact, you may recall here, we've updated again these numbers. TWS business has leveraged approximately 50%-60% of the average daily ASX 200, CSTS Super around 15%-25% of the average daily ASX 200, and CSTS Corporate 40%-50% of the average daily world MSCI and the ASX 200. On the right-hand side here, on the top right box, you can see some of the impacts that drive our exposure to markets, the mix of asset-based fees, the extent of cap and minimum fees, the level of scaling of fees, and the asset allocations. And of course, the world MSCI has been particularly positive in the last quarter. The equity markets generally have strengthened, and that's been quite helpful. So that's it in terms of a financial update.
Invite any questions for Mick or myself at this stage before we ask the TWS team to join us and give you a briefing. Tom.
Yeah, sure. Steve, just to clarify the additional synergies with self-taxability, asset management, and identifying situations where you need to display the internal. There will be asset management, correct.
Yeah, no cost synergies. No cost synergies involved, correct. Yeah.
Okay. Yeah. Thanks. Just in there was a chart of AUD 194.7 includes AUD 5.5 of discontinued and discontinuing ops. What was that in the at December? Was it broadly the same amount?
Broadly the same. Yep.
Yep. And then just to the winddown of that, I guess, by June, all of that effectively is no longer reported, do you think, or is there still some part of the European business that will remain?
I expect there'll be some residual element, but it will be small. It should still be substantially exited from a operating sense and a loss sense by 30 June.
You spoke about CSTS Australia onboarding a whole lot of new, you know, new clients, new funds within existing clients. How much of that is reflected in the March quarter uplift and, you know, of that? I think it was 40 versus how much you kind of still got in hand that are onboarding.
Look, there are a couple of clients, big clients, that have had some very significant inflows, and the numbers also reflect, you know, a significant number of those clients we flagged that we were setting up, and they've been set up on track, and you'll hear more from the CSTS team about those in due course.
Thank you. Yeah, I think as Philip said, there's not a lot of fun from the new clients because often they start, you know, quite small, and most a lot of that is market movement, but also some of our big established global equity managers have achieved quite a bit of growth in the course of the quarter.
Yeah. I think you were looking to a nervy moment with the transition of NavOne there. Can you just expand on how that went?
Well, look, I'll just be really brief because Phing will or Ian will talk about it, but basically, we implemented on the 1st of March, as we planned, the continuing trust, the most complex book of business of TWS's business, and it's going very well. So we've still got a tight timeline to get everything across, but it went to plan. Yeah.
But you'll hear more from Phing and Ian on that. We're good?
We're good.
Right. Great. I think we're good to get Ian up, and he'll introduce his team, so. Yeah.
Good morning, everybody. My name's Ian Wesley. I'm the Executive General Manager of private clients at Equity Trustees. As Mick said earlier, I've been with the company for 17 years, and I've been in this role eight years since late 2016. And just on the screen at the moment is my leadership team, and you'll see there that all very experienced individuals, and really pleasingly from my perspective, Eric, Aaron, and Joe have been with me in the whole eight years that I've been in this role. Jodie joined very shortly afterwards, as you can see. She's been with us for seven years.
Ravi, although he's been with us for 10 years, he actually came across as part of the AET integration, so he's only been part of our leadership team for about, well, just over a year now, but he was one of the senior leaders at the AET business. So I'm very lucky to have an incredibly experienced leadership team who have incredibly deep knowledge of not only their own business units but across the whole business, and the support and knowledge that they're able to share with one another is a big part of the success that we've been able to enjoy over recent years. And I'll introduce Jodie and Ravi more formally as we go through the presentation.
So we have a very diverse range of services at within TWS, and we're going to go through them today in some detail, but we do think of them really in two groups. On the left-hand side of the screen there, you'll see what we call our traditional trustee services, and really, they are the services that the company was first formed to provide back in 1888 to Victorians primarily then, but obviously now that we have a national footprint, we do so across Australia, and they are linked, and we'll talk about how clients flow through those different products as we go through the presentation.
And then on the right-hand side of the slides are the more modern trustee services, most of which have evolved over the last 20 years, and we're out to leverage that experience that we have in those traditional trustee services to provide trustee services to a whole new range of clients, and we will go through those in a bit more detail too. Before we go into the specifics around each of the products, I just think it's important to understand that while we feel we've been successful over the, you know, the more recent past, we do feel that we've built a foundation that is positioned to benefit from a lot of market movement that's going on as well.
We typically deal with older Australians within private clients, and obviously, everyone would know that we're moving into a stage where we're going to have more people in retirement than we have working. Over-80s is the biggest growing cohort of people within Australia, and we do feel that we have services that absolutely are fit for purpose for that demographic. Also, everyone would have been aware of the intergenerational transfer of wealth that's about to happen as a baby boomer's retire and then start to pass their assets on to the next generation, and that will mean that many Australian families for the first time will actually inherit significant wealth, and we do believe once again that we will be able to play a role in that.
There's more complexity in Australian households today than it ever has been before, whether that's blended families, people dealing with complex assets, people living overseas, and we can really add value to families who have those sort of circumstances. Jody will talk a little bit when she comes up about the Productivity Commission and the Australian government's stated ambition to double giving in the next before 2030. We absolutely feel we can participate and assist with that, but equally, we will benefit from that if it's achieved.
There's increasing empowerment of First Nations people across Australia, and the younger generation are even more passionate about that, and we feel that we are well positioned to assist Indigenous communities with their largely mining royalties that flow into their trusts going forward, and it's absolutely a role that a professional trustee company should take on because we do have a license to help vulnerable Australians, and some of the most vulnerable Australians do live in those Aboriginal communities. And then lastly, the NDIS legislation and the way that assists people living with disability really helps us manage our health and personal injury client book because we're responsible for managing assets on their behalf that take care of their care for the remainder of their life.
So we have to manage, obviously, those portfolios to make sure that they fund those expenses. Now, because the NDIS is now available to many of those clients, it means we have to fund less of the ongoing expenses so it can invest the portfolios differently to grow more over time. So we do feel that we are positioned in markets that are going to benefit from the way things are moving. And then the last thing I want to touch on before we get into the specific product is just to remind everyone the impact of the AET acquisition on the trustee wealth services business. So this is not current data on this slide. This is a snapshot of what the business looked like in December 2022 when we bought the business.
On the left-hand side of the diagram there with the bar charts, the blue data was what Equity Trustees looked like prior to the AET acquisition, and the yellow data is what AET looked like when it was under Insignia's ownership. So you can see where we were small, they were large, and where we were large, they were small. So by bringing the two businesses together, we created scale across all of our chosen markets, and we do believe now, as Mick touched on earlier, that we absolutely hold market-leading positions in all of these sectors. And then if we move to the right-hand side, we were very much an East Coast company prior to acquiring AET. You'll see the orange dots there, Sydney, Melbourne, and Brisbane with a very small presence in Perth.
AET were kind of the opposite of that, very big presence in Adelaide and a significant presence in Perth. Now, that's very important because our clients do have quite specific needs, and we feel it's really important as they do to have local people on the ground servicing their clients. No other trustee company has this geographic footprint and is able to service clients locally in the way that we are now that we've become the one business that AET and EQT created. As Philip touched on in his presentation, we're really pleased with how the integration's going, and Ravi, being an ex-AET [person], will probably just give you a little bit of a flavor how he's seen it from his perspective. I'll move on now to talking about the products and services.
As I said, the first, the original services that the company came into being to provide were estate planning, estate management, and trust administration, and these clients are very much linked, and the diagram here endeavors to show that. So if we think about the left-hand side of that flow chart there when we talk about estate planning, this is a critical part of our business delivery and is the main distribution point for all of these services. So when a client meets with one of our estate planning solicitors, and goes through whatever the needs they have from a testamentary perspective, our objective here is to be appointed the executor and/or the trustee roles that they may have, once they pass away.
So, in a way, we're entrusted to look after their affairs when they're no longer around. And if, when the estate planning process takes place, none of that happens. We don't get appointed executor or we don't get appointed trustee. None of that revenue on the right-hand side arises. So it's a really critical part of our business development and distribution is that we get that right. So you can see on the diagram that the typical time from when someone writes an estate plan to when they pass away is about 15 years. So we see that as a big barrier to entry for other competitors to come into this space because you've got to wait a long time before the real revenue associated with that estate planning starts to flow.
In that intermediate intervening period, we hold the wills in what we call our will bank. We've got about 200,000 wills in there which have got various originations. We're now you know, in my time here, we've acquired ANZ Trustees, Sandhurst Trustees, and AET Trustees, but also AET has acquired National Australia Trustees, Plan B Trustees. So we've got will banks from all manner of sources, and we're always interested in looking at other will banks that might become available to us because we see true value in that because of what we can provide to clients further down the line. We anticipate about 10% of those wills actually currently do appoint us. Now, I know Philip and Mick have spoken about the value of the will bank in the past.
It has proved a little bit difficult to unlock that because I don't know if you know what a will bank looks like, but when we acquired ANZ Trustees, it was basically a room that had 140,000 wills in it and paper documents. So you've physically got to go in there and open every single one of them up and then read it to understand what it is. Now, that's obviously a very manual process, and when you're dealing with these documents, you've got to be very, very careful on how you handle them as well.
So we've dabbled in the past on how we could benefit from what is absolutely critical knowledge and opportunity sitting in there, but we do believe that through the use of AI, we will be able to unlock some of that potentially in the not-too-distant future, and Phing will touch on that a little bit at the moment. The reason we're not doing that right now is the technology spend that's going on is really focused heavily on these business units at the moment. As Mick and Philip said, the continuing trust business, which is on the right-hand side there, has just loaded onto the NavOne platform, and the philanthropy business will be moving on May the 1st and June the 1st with estate management on June the 1st.
So there's a lot of activity going on, and this business will be on the NavOne platform completely by June 30, and that will really increase the client experience and also the staff experience. And we also believe it will open up new opportunities to access new markets once fully implemented across the business. And Jody will give an example of some technology we used in the philanthropy business, which we hope will be the same type of opportunity we'll be able to harness through the development of NavOne in these processes. You'll notice there so we write the will. We hold the will bank, and then someone passes away, and then we look to administer their estate. Now, that typically takes nine months to two years, and that's very much a transaction fund-based fees but transactional, so one-off.
But what is important from there is where that we get trust administration coming from that, whether that's a continuing trust or a perpetual charitable trust. To give you an example of what a continuing trust is, that would be, someone would leave an amount of money in trust for an individual or individuals who is paid the income that that money generates for the rest of their life or maybe to a to they attain a certain age. Then let's say that it's till for the rest of their life where they then pass away.
The capital will then vest into the hands of another set of beneficiaries, and this is a really important part of the way that we manage our business because most investors, when they invest money, if they're getting a total return of 10%, they actually don't mind if it's 9% market movement and 1% income, but our clients clearly do mind because we've got someone who's only accessing the income and someone who's only accessing the capital. So one of the things we've Darren and the asset management team has built specifically, designed portfolios to really manage that balance between making sure there's enough income but also making sure there's enough capital growth. And these products, we believe, are best in market and fit these type of clients better than anything else, and they are utilized heavily within the continuing trust and the perpetual charitable trust business.
The perpetual, so continuing trusts typically last. They can last sort of up to 80 years, but typically, they last somewhere between 20-30 years, which would be the average that we see. So long-tenure appointments and then perpetual charitable trusts, they last in perpetuity. Now, I've been here 17 years, and I still grapple with that because, you know, to think that these trusts will still be operating in 500-1,000 years is incredible to think. And to give an example, Mick, I think Mick touched on the Felton Bequest and what that's done for the NGV in Victoria. I like to use the example of another one of our trusts, which is the Moss Trust, which was formed in the 1960s.
It started off with about GBP 500,000, and the fund all of its income goes to the Royal Children's Hospital. Now, at the time when Mr. Moss passed away, the Royal Children's Hospital was actually going through a real development. He could have given his half a million pounds directly to the hospital, which would have helped build the hospital at that time, which would have been a great cause, but that hospital has since been knocked down. So that leg while great at the time, the Moss Philanthropic Trust has granted over AUD 100 million to the Royal Children's Hospital and is today worth over AUD 100 million.
So that shows the power that someone creating one of these structures in their life and the longevity that these trusts have, how much good they can do to community. These clients are also very important for us because, as Mick touched on earlier, we provide advice to our beneficiaries, whether that's people who are getting a direct payment out of an estate management or the beneficiaries of our continuing trust. Our financial advice business has been built providing advice to these clients largely. We've obviously got word-of-mouth referrals from existing clients, but essentially, this is where our advice business has been built from, and this is what the focus of that business remains today. Equally, we look to cross-sell estate planning to all of our beneficiaries.
Hopefully, they've had a good experience through the estate management and the testamentary trust or the continuing trust, experience they've had and look to appoint us and utilize us in the same way that they've been a beneficiary of in the past. We do have many examples of families that we're we're sort of going through the third and the fourth generation of providing these services to now. It is a complex business, though, and one of the, one of the true complexities comes. I might actually just go back a couple of slides. As I said here, estate planning is, is the critical piece for those downstream revenue lines, but it is the only time we deal with the client here. It's a very unique situation. We deal with the, the client at estate planning. They tell us what they want us to do.
They pass away, and then we enact their wishes. So the client's no longer around, and we're left dealing with their beneficiaries. Now, that can be quite confronting for beneficiaries. Quite often more often than not, unfortunately, they don't know that we're going to be involved until they open up the will once their loved ones pass away and go, "Oh, it's Equity Trustees. We're going to be my executor and trustees." And that can be very confronting at a time when they're grieving. They also know now that they're not in charge of their assets. So we need a team who can sort of work through that, build relationships through a difficult time because we're obviously going to have an ongoing relationship. Even if it's only from an estate management process, that's still going to go for a couple of years.
So it's really important that they can build rapport and make sure that people understand what it is that we're doing. And one of the beauties of the AET acquisition was the bench strength that we've been able to build across all of those teams. Now, you can see there the scale of the teams that we have. They're able to deliver services locally, in Australia, all across Australian mainland, but equally, they've got great knowledge to themselves but also to lean on within the team to make sure that the client experience is as good as it can be. And before I pass on to Jody, the one last thing I'll say on this is we are the only trustee company now that is participating in this whole value chain. Others have exited bits of it, but we have remained committed to it.
The next slide is just a snapshot of the size of each of the business from a client and a fund perspective, but it also calls out there where we do utilize asset management in some of the products. With that, I'll pass over to Jody, who can talk to you about philanthropy and native title.
Thanks, Ian. My name's Jody Kennedy, and I'm the General Manager of the Philanthropy and Community Trustee Services team. That team comprises our active philanthropy team, our charitable trust team, and our community and native title teams. It's a bit high. Our philanthropy business has a 20-strong team of deep sector expertise crossing the role that we play as both trustee and aggregate philanthropic giver. We steward a portfolio of over 1,000 philanthropic trusts and foundations, and across the portfolio, we're collectively distributing between AUD 100 million and AUD 120 million in philanthropic bequests, grants, and donations every year. Our role as a funder at scale requires deep expertise in both governance as well as the complex area of funding for social impact. As mentioned, philanthropy, the business consists of two types of structured giving vehicles.
So perpetual charitable trusts, we referred to earlier as traditional or legacy-type trusts. They're made through a will during the estate planning process, and they'll continue to grow in numbers through our will bank and our estate planning process. Traditional philanthropy takes place once someone's passed away, but increasingly, trends are showing a strong movement towards people starting to give during their lifetime, and they're being more strategic, and they're being more heavily involved in their giving. Commonly known as giving while living, this type of structured philanthropy can be done via either a private or a public ancillary fund, otherwise known as a PAF or a PuAF. These structures sit within our active philanthropy portfolio. We see a strong future growth opportunity and scalability of philanthropy through these structures.
This trend toward giving during one's lifetime reflects the growing wealth of Australians and their desire to share their wealth and to contribute toward social impact and change. They also provide a very handy tax benefit, which can be leveraged during one's lifetime. So while philanthropy was once the domain of the high net worth, structured giving is now becoming more accessible and popular, and it's definitely something that a larger cohort of middle-income Australians are looking to practice, and they're starting to do this much earlier in the life cycle. So this is especially relevant when wealth transfers across multiple generations of families as we see philanthropy as being more and more regularly a go-to option where families are particularly purpose-driven or they have surplus assets to share.
Interestingly, females are positioned to be custodians of roughly 65% of the AUD 3.5 trillion of transferring wealth, and we're seeing our referral pipeline reflecting this trend of growing interest from female philanthropists. We're seeing families becoming more increasingly focused on giving back, often tying this giving during their lifetime into the estate planning process. So giving while living can actually augment philanthropists continuing to give in the traditional way beyond their lifetime as well. Alternatively, an increasing number of philanthropists are choosing structured giving to direct their wealth because they have no successes. Earlier, Ian referred to a strong movement across the philanthropic sector supported by the government aiming to double giving by 2030 in Australia from AUD 2.5 billion-AUD 5 billion in the next six years.
We see ourselves as really well-positioned with our dedicated team of 20 philanthropy specialists to play a significant role in this growth and movement. Historically, our B2B referral model or word-of-mouth from existing clients has been our primary source of new business. However, we see future growth being facilitated through the use of better technology to scale our ability to compete in this space and capture some of this wider opportunity. In 2019, we actually toured the U.S., who are leaders in structured giving, to learn about the success of the market over there, the active market over there, which is referred to as the DAF or the donor-advised fund market. In the U.S., they see they've seen the amount of giving doubled in size over the last five years to $55 billion in giving alone, with $230 billion in assets sitting within these DAF structures alone.
Since then, we've been pretty busy. We've bought the DAF technology back from the U.S., and we've gone through the process of tailoring it to the unique nature of the Australian market, creating our own philanthropy portal. This portal allows us to onboard and service clients in a faster and more efficient way, even allowing clients to self-serve, to direct their own giving where they can check their balance and direct their granting and donations in real time, just like online banking. We've now successfully migrated all of our PuAF clients onto the new philanthropy portal known as iPh i in the U.S. and are starting to see the benefit of scale already, even prior to publicly launching this product in market, which will be later this year.
Our PUF clients are utilizing the PAF platform very effectively, and we've also successfully transitioned our largest PUF client, the JB Were Charitable and Endowment Fund, across to the platform in our first version, white-labeled version of the portal. This partnership is strategically very important to us as JB Were have a strong brand and distribution within the philanthropy sector, but it's actually an example of where we've been able to offer our portal and trustee services. However, we've partnered with JB Were as the investment manager in an unbundled approach, which was previously not possible without our portal. In summary, technology is key to us achieving growth in active philanthropy, and we're well advanced on this front. Okay. Community and native title trusts also form part of my business. We currently work with 22 Aboriginal and Torres Strait Islander communities across the country.
We have a 20-strong team based in Perth. While it's a relatively small part of our business now, as you saw from the pie charts that Mick shared with us, we see it as an area positioned for strong growth. Typically, there are two types of trust structures used in this space: charitable trusts, which are similar to perpetual charitable trusts, which are designed to protect funds for future generations, and also direct benefit trusts where money flows in and then flows out in direct benefit payments to support individual beneficiaries and their needs in the short term. As trustees of these trusts, we work with Aboriginal communities to protect, structure, and distribute assets awarded to them, as Ian mentioned, predominantly by mining companies in the form of royalties or land access agreements. Each of these 22 communities is highly complex and very unique.
They require deep subject matter expertise to partner and support them over the long term. We work with representatives of our groups in determining how to support each of them in their communities using native title body corps and committees set up specifically for this purpose. Being a professional trustee company, we absolutely believe we have an important role to play in this area by providing governance and protection of community assets in deep consultation with these communities who are often very vulnerable peoples. Our stewardship also gives mining companies certainty that an independent trustee is appointed to ensure the money's leveraged equitably for both current and future generations. And there are very few providers with both the skills and the empathy to play this role.
So we believe in this space, future growth will largely be driven by native title activity, and through our networks, we'll be seeking opportunities to work with communities through their native title agreements and their associated processes. Thank you. I'm going to hand over now to my colleague Ravi. There we go.
Thank you, Jody. Thank you, Ian. Good morning, everyone. It's great to be here at this investor presentation. As I look to the left of the room to my colleagues over there, can I perhaps start by saying long live the necktie? I must have missed the memo at dinner last night, that today was a no-tie event. As Ian mentioned, my name is Ravi Malhotra, and I'm the General Manager of Private Wealth and Partnerships at Equity Trustees. The slide that Ian had earlier on referenced that I've been with the group for some 10 years, but, as Ian referenced, I think it's worth me pointing out that for 8.5 of those 10 years, I was with Australian Executor Trustees.
My experience in the 1.5-odd years that I've been here with Equity Trustees has been overwhelmingly positive. I, there is something to be said about working for a pure trustee company, what is really Australia's last remaining national pure trustee company. So that's been a wonderful 1.5 years. They say that change is as good as a holiday. I certainly wouldn't characterize my last 1.5 years as being anything like a holiday, but it has certainly been energizing and refreshing. In my role as general manager, I look after the business development teams, the estate planning teams, and the advice teams. And so I'm happy to do a bit of a a an overview or deep dive in respect of our health and personal injury department before I talk to some other aspects.
Now, what you're seeing here, is a simplistic but a fairly realistic, depiction of the client life cycle in our health and personal injury matters. Our health and personal injury clients can include, for example, children who have suffered complications at birth, adults who have had medical procedures go terribly wrong, people who have suffered catastrophic injury in a motor vehicle accident, whether that is, as a driver, as a passenger, as a pedestrian, or as a cyclist, or even clients who've sustained significant injury in the workplace or, indeed, on a sporting field. These clients will have suffered massive trauma, and it renders them to be incapable of managing their own affairs.
While we can never do anything to take that back or take that incident back, we can certainly position ourselves in the best possible way to support these clients and their families for the duration of their lives. Now, if we look to the left-hand side arrow, each matter starts with a client family working with a plaintiff personal injury lawyer to really build out a claim that seeks to maximize an award of compensation. We find that catastrophic injury matters can take more than a few years to settle. In fact, it's not uncommon for us to see matters that can go for 5-10 years plus before an award of compensation is made. On the right-hand side of the arrow, this really represents once EQT has been appointed as the trustee or the financial manager.
really, we are appointed as Ian referenced before, for the remainder of their lives, which can often be in excess of 50+ years. Now, what's important to note here in respect of our health and personal injury service line is that our clients are typically high value. They are long-term clients. They are appointed well, we are appointed by the court, and we are only able to be removed by court order. And they're very loyal relationships, and they're loyal relationships owing to the very high touch and bespoke and day-to-day sort of interaction that our health and personal injury team have with these clients and their families. So whilst our 1,240+ health and personal injury clients that we have, it's important to note that none of these clients are actually subject to any competitive process.
In terms of the first bullet point below there, what this recognizes is that the client family will have developed very strong relationships with their plaintiff personal injury lawyers. And so it's imperative that we at Equity Trustees have got strong relationships with these plaintiff personal injury lawyers whereby they trust us that we're going to do the right things by their clients. I'm both pleased and proud to say that at EQT, in particular as a result of the acquisition of AET, we've got a fantastic team of industry-recognized stalwarts in this health and personal injury sector. We've got fantastic bench strength as Ian has mentioned before.
It really positions us well in terms of being able to continue that work with the plaintiff personal injuries lawyers who we interact with, and it positions us well for future growth in the business. So let's consider if we perhaps move to the next slide. If we consider the challenge going forward, you know, as well as EQT having the most experience, the most scale, and the most presence across the country in this sector, I believe that our strength has really been in recognizing that every client's circumstance is different and that every client requires a very bespoke and high-touch service.
Now, this sounds cliché, but in dealing with a set of circumstances surrounding a catastrophic injury or a disastrous medical malpractice matter, we need personnel with the appropriate combination of character, emotional intelligence, work ethic, and acumen to give both comfort and confidence to the families who we interact with. This is extremely difficult to recruit. Once again, I can put hand on heart and say that, you know, AET and EQT have been very pointed over the years in targeting specific individuals in this sector who are widely regarded as industry stalwarts of this area. We've got a magnificent team of experienced professionals in health and personal injury, and I think that's going to hold us in good stead going into the future. Our clients are not inclined to chop and change trustees.
That can be a costly and an expensive process. But beyond that, you know, we do have such strong relationships with those clients at a day-to-day level. So with the personnel that we've got at EQT, as well as the bench strength of our client relationship team behind the scenes, we're very well positioned to attract ongoing clientele. If we move to the next slide, this is really just an extension of what I've mentioned, but it applies to our wind-up business as well. So what this slide seeks to convey is that, you know, we have a group of experienced BDMs, and we are well-serviced in terms of our business unit teams. We've got subject matter experts across all aspects of our private client trustee service lines.
We've got deep relationships with the bodies and the referral sources that are listed in that network column. And we believe that this is a people business. Georgie will later speak to some of the initiatives that Equity Trustees are embarking on in terms of talent retention and people. So on that, Ian, I might hand it back to you.
Thanks, Ravi. So in summary, I think it's important we've spoken about our asset management capability throughout where we utilize it within some of our portfolios. What we've listed here is the business units that we've been through and the proportion of the funds that we're a trustee for that we actually utilize our own funds for. So you can see there, it's a very wide range. There's very good reason for that. As I touched on earlier when I was talking about continuing trust and perpetual charitable trust, how Darren and the team have built out specific products that really we believe are best in market for these clients. That's why we have a very high allocation there 'cause we've got to manage those specific classes of beneficiaries.
There's very good rationale as to why the other proportions are why they are. That's because we have an investment framework that defines a strategic asset allocation for all of our client types. These are reviewed annually, and we get them validated by a third party. What we typically look to do is for each cohort client is we align them to that framework. Now, we do review every single portfolio at least once a year and take the individual circumstances into account. And then we assess those individual circumstances relative to what we've defined as the typical client in that space and make an individual portfolio allocation. But by and large, most of them do fit within the typical cohort for an individual client.
And those allocations there really represent the proportion of our funds that fulfill the strategic asset allocation for each client cohort. We do monitor asset management performance 'cause obviously, this is critical for us that we've seen, you know, people will ask, "Why do you use your own funds?" And we're very proud of the fact that they are fit for purpose and they are performing well. But equally, we do have a governance framework. We have a management investment committee that I chair that Mick sits on, that Philip sits on, as well as other members of the executive that does monitor the ongoing performance of the asset management team. And we also have rating agencies that assess the performance of the funds that Darren and the team are responsible for as well. So we do utilize the products.
We utilize them in line with a strategic asset allocation, and then we overlay every single client's individual need, and then we assess the ongoing performance of them. This slide summarizes a lot of what we've covered here today. So it shows, you know, the relative size from a fund perspective of each of the business lines. It talks about the duration, and you can see there that we do have very long-duration clients that are difficult for us to be removed as trustee. As Mick touched on, it really does need to be voluntary, and that really needs to get to the stage where we just can't work with a family. In my time here, it would be less than a handful that I know that we've stepped away from, so that shows you how infrequent it is. So yeah.
So that's, I think, a very good snapshot of the tenure and the relative size of the businesses. And then just in closing, Mick touched on it that our greatest asset is our people, and it absolutely is. And we're really fortunate that we have incredible talent across all of the services dealing with very complex clients. And this is really the first two points there are really important. We have long-term long-tenure clients, and we have great people. And being able to have, if you think about it, someone who's living with a brain injury, it's really important that we've got someone who understands that and who also wants to stay with us for a long period of time. So that client gets consistency of who their relationship manager is.
I'm really proud of the tenure of our staff, and that we are able to be very consistent for those vulnerable clients. As I touched on at the beginning, we do believe there's favorable demographic circumstances that are coming our way that will, you know, make our products and services more available and needed by more Australians. We have very strong market positions in all of our chosen marketplaces. I hope we've demonstrated today that we have a very diversified revenue line. We have very low, if any, client concentration risk.
We are really while we're in the middle of a technology build at the moment. Once we get through that and we've improved the experience of our current clients and our current staff, we'd really do believe that new opportunities are going to emerge in the same way that the iFi platform will for the philanthropic clients that Jody spoke to. So with that, I'll, I'll finish there and open up for any questions.
So just in short, on the iFi platform, so is it more of a compliance platform, or is it accounting, or is it investment administration, or is it all three? I'm just very quick.
I'd say all three, Jody, wouldn't we? So effectively, as a client now, so historically, if you wanted to become a client of ours, we would have to find each other somehow, which would be word of mouth, and then we'd have to do everything face to face. You can now find us online. You can become a client without talking to us. You can set the money up. It will get invested. And then you can choose your charities and pay all online without having to touch anyone in the business. Now, if you want help, Jody and her team are there to help. But if you feel you're empowered and you can do it all yourself, then you can do it all yourself. And all the reporting comes off the back of it.
Things like checking DGR status of donation continuing to support is challenging. If you had something to offer, say, Crestone to a, you know, greater investment administration team, you'd probably know how to do that.
I'm not Jody, do you wanna talk to that?
Yeah. So we've actually built the portal 'cause that is an issue, so that you can only select DGR1 entities. So the portal in and of itself forces you to know that you've actually chosen an eligible entity. So it basically, you know, automates that entire process. And we've taken that data from the ACNC. We've cleaned it, and we've automated it and now have a great search engine in place to get around that problem.
In short, Jody, will that allow the people who want data to open sources around to keep the data coming back in a better way than they did in the years earlier? Are there measures to be able to get better access to the data and use the data to do things like that in regards to the NPV?
Yep. So with regard to the NPV that's in there, we do for all new wills that are written, we do assess them for their NPV value, because we think that's really critical to show the value that the team are delivering into the future for the business. So we do assess each new will on that basis. We do have digital wills for probably going back to about 2010 for virtually all the wills that would have been written since then. For the wills prior to that, they're not digitized. And this is where we've got to work out a way that we can get them digitized. But it's only worth getting them digitized if you can then interrogate what you've done. And in the for that's what's been our problem in the past.
We haven't been able to have the technology that even if we did have digital images, how could we quickly scan it to determine what the value is in there? But we do believe with AI, for instance, that we could look through all those digital wills that we do have. And this has got to be developed. It's not available yet, but it's an idea that we've got. And Phing will probably touch on AI a little bit, that it could scan all of those wills, for instance, and say, "Right. These 10,000 people are giving money to charity, whether directly or setting up a structured giving vehicle." So that would be something that we would be interested in marketing to them, the iFi capability, around. So that's where we see the real opportunity to it.
And the second opportunity is exactly as you say, that obviously, when we do estate planning, we wanna get appointed as executor and trusteeship. But that doesn't always happen in the first time round. If someone's 40 and they're doing a will, they're probably not thinking about passing away. They're probably well, they are 'cause they're doing a will. But the thing that's probably most important to them is guardianship for their kids, for instance, rather than transfer of their wealth. But as they get older so they might not think of of needing Equity Trustees at that time. They're more thinking about who's gonna look after their kids. But as their kids as they get older, they may then think about, "Okay.
Now, I need to think more about the assets rather than the family." That's where they could become clients of ours down the line.
I'm happy just to add to that a little bit.
Yep.
I think the data that we are capturing, certainly in the past 10-15 years, both at EQT and at AET, has been far better than what it would have been in years gone by. Our estate planning practitioners, because they are all senior practitioners and they've been well and truly in the trustee industry for a long period of time, they're well-versed in being able to identify opportunities where we can be appointed as executor trustee if a client does express a philanthropic intent to talk to some of the more structured giving options. Certainly, one of my observations has been that in Equity Trustees, we're sort of much more focused on working with intermediaries, be they financial advisors, accountants, or lawyers, who appreciate the importance of an independent executor trustee.
Whereas at AET, under the Insignia Financial Group, I think that, really, anytime we were undertaking a will, in particular for a Insignia referred, from an Insignia referred financial advisor, it was a tick because we were able to offer an end-to-end holistic service. Whereas the focus on being appointed as executor trustee, working with advisors who appreciate that, is far greater at Equity Trustees. So I think we will see an upward trend on the instances where we are appointed.
Sorry. Mick, excuse me. But, Ravi, would you say the 10% rate, that's not reflected in the current year?
Certainly not. So I would say that the current appointment rate would be more sort of 30%-40%. 10% is probably more historical. And it's hard to measure because the quality of the data capture in wills that were written 100 years ago is not what it is at the moment.
The opposite of the doubt about packaging for sure, or you know, if they're sort of all wills are possibly being signed by a trusting authority? Do you know that?
No, we don't know that. We do do mailouts from time to time, and we do know that people have revoked their wills and gone elsewhere. But pleasingly, when we have done that, and it's relatively small sample sizes, it is a relatively small amount, because what would we would normally know about it 'cause they would typically if we're holding their will and they're going to do a will somewhere else, they would want that old will to be taken out of circulation, if you like, so that potentially that there's no risk that the wrong will could be executed.
And Mick, you've alluded to the risk of expectation in terms of externalization of that potential. You've said the chance to have data and to expect it to become much. I mean, there's a concurrent line. So there's some that will never get too high, or are they just sort of aligning through the contract within the asset?
So aligning the AET portfolio of clients with our investment framework has driven a large chunk of the synergies that's been reported to date and will continue for the next couple of years. That representation there really is the current representation that we think is appropriate for each of the client types. So, it won't vary significantly from that.
So then you don't apply for an active flat annualized double-concrete contract?
Well, it does because if I think about the Perpetual Charitable Trust, for instance, the asset allocation for those would be quite high towards our own funds. And that work is largely done. So I think the synergies we're at about four point.
Oh, okay. Yeah.
4.9. Largely driven through the allocation of those particular products to those allocations.
There was an increment flat potentially there?
Yeah. So with the continuing, so PCTs are easy to do because there's no tax. So you can effectively move the whole portfolio at no cost. Continuing trust, there is CGT. And we have rules around how much CGT will trigger each financial year. So a PCT can go in one move, go from here to here. A continuing trust, it needs to be incremental. So that journey, that incremental journey to manage the CGT is what's gonna deliver those additional synergies. But that's why they'll be diminishing in terms of, the total that they are. The vast majority is already done.
I understand that. Adam?
You know, PME? Okay.
Yep. There's 102 slides, I think, in the deck. I can just see one data point that's not right there. There's a transition between the PCTs and the active philanthropy transition those fund numbers around. Okay? So.
Oh.
Just so you're aware. So, you know, look, I think Ian's answered the question, as to how we see the progression of further use of asset allocation. I'll just add, if you take, say, Native Title Trust, right? We've always pitched that we want trusteeship, right? Okay? If asset management comes along with that, great, right? But of course, our competitors generally have pitched the opposite, right, that they are gonna provide a combined service. And that's held us in great stead. It's got us the business. I think over time, if we're patient, if we deliver great trustee services, we'll get the opportunity, you know, to provide asset management services as well. And that's the way we think about things, lead with trusteeship all the time. And, you know, so that's an example of the approach that we've taken.
So, you know, there is opportunities over time, and they're not necessarily related to the AET synergy per se the way we've set it. But I you know, and, and I'm just making the point that we've added that there will be greater revenue synergy in there, you know, FY26 as progressively some of these other trusts move. Yeah. Is that clear? Or yep.
Regarding the tax rate that came in generally for services and tax rate on the regular, is that largely due to sort of limited sector?
Yep. Yep. That's right. Yep. So with that, we would hope an opportunity to convert them, as I said, down the line.
Just on the health and personal injury space, given that's one of the key areas you benefited from, from the acquisition, where do you sit now post-acquisition in terms of market share in health and personal injury? And then, I guess, can you help us with where do you see that getting to? Or where, like, what are things in your control that you can do now to help lift that market share with the various plaintiff lawyers?
Yep. So I think it's important to think of the this in two parts. We've got over 1,000 existing clients. We don't see them as being part of the market because they're locked away, and they're no longer in a competitive situation. We're appointed by the courts for the rest of their life. And as I said, we would have to do something wrong for that to change. So we don't consider them part of the competitive landscape. So it's really only new opportunities that are out there in the market. And I might let Riley talk about that 'cause he manages the team that's responsible for delivering.
Yeah. So the relationships that we have with the plaintiff personal injury lawyers are very strong, also with the allied healthcare providers who our clients work closely with post-injury. It's a little difficult to assess the size of the market because there are no sort of facts or figures around that. What is important from our perspective is ensuring that we've got the right people, both at the front end, at the business development end, who've got those strong relationships, but also the bench strength behind the scenes to be able to work on the day-to-day with our clients who have been catastrophically injured. And so where EQT can sort of set itself apart from our competitors is we've got a truly national presence. We've got a really strong and extensive team that understand this area.
And we're investing in our new recruits to upskill them to be able to deal with this particular sort of style of client and the circumstance that they're in. So it's really a people-based sort of function. And I think that's what's going to hold us in great stead in the future.
If I just add to that, we obviously had expectations of what new business we would be able to derive, and we're exceeding that to date. We were, you know, you'd hope that Equity plus AET would be the minimum that we would get going forward, but it's actually better than that because of the capability that the combined team brings.
So the key risk to your team, I guess, really personnel is that you feel around that team. Is that fair?
I'd say that would be fair to say. Yeah.
I think it's important to realize that we've got 27 in the team and sort of two or three or three dedicated in the business development. And they all need each other. It's the scale of that team and the ability to service locally that no one else can offer that enables us is a big part of us winning that business.
I'm just gonna jump onto so I'm gonna pick up some data. Unfortunately, this is a segment that doesn't seem like clear. The professional trust in the market, obviously, we're getting more efficient at.
Just, circling back to philanthropy, you touched on the sort of strong growth in the U.S. on that DAF vehicle. Is there anything structurally different in the Australian market that would lead you to sort of expecting a sort of different growth trajectory for that vehicle?
Good question. I'll start. There are a few differences between the U.S. market and Australia. It's fair to say Australia, the Australian charitable or philanthropic space is more heavily regulated. An example of that is that within the U.S., you can put as much into your DAF as possible, and there's no minimum distribution of going coming out of your DAF. Within the Australian market, that can't happen. That's, in my view, a good thing. In terms of.
Yeah. So for giving perspective, there is some very big difference. So we're not saying that we're gonna get to U.S. per capita giving. There's a very good reason for that.
Yeah.
The three biggest areas of giving in the U.S. are education, health, and religion. Now, they have to give to education and health because they don't have government education and health systems of the quality that we have. So they have to give back to support that. And Australians are just not as religious as Americans. So if you've gotta, you've gotta carve that out if you're gonna compare the two markets. But underneath that, we would expect it to be very similar. And that the DAF technology didn't exist in about 2013, I think it was, Jody, wasn't it? It was 2013 that it came to be. And that's when the giving through those vehicles took off.
Yeah. So, just to build on that, part of the push to double giving by 2030 is it's recognized within Australia. People, it's not such a mindset as it is in the U.S. to give charitably, to the point that Ian has made. But technology, we've been quite behind in the way that we've made it accessible for people to give at all levels of the kind of middle and upper end. So I think, to answer your question, really, the main difference is us catching up with making giving easier, more efficient, and more flexible. So we're quite behind on that front. And so that's really talked to the technology piece and also the understanding of how the referral market actually has the conversation with people when they're having a liquidity event.
We've been at a disadvantage in the past because advisors have been disincentivized to talk to, or they've been unconfident to talk to their clients about philanthropy. And so that's a bit of an education piece and an awareness piece where, through this campaign of doubling giving, the sector is really looking at upskilling, you know, advisors to have those conversations, making specialists like Equity Trustees more visible, and making sure that people feel that philanthropic giving is not just something for the rich. And that has really held people back in the past. And we see a real push from middle-income Australians wanting to practice philanthropy, but they just don't quite know how to get into it. So we're sort of tackling the problem on a whole number of levels. But it's cultural. It's awareness. It's technology. And it's the referral piece coming in.
Just to talk about the minimum threshold.
Sure. And that's Philip is a good example. Historically, to get into a structured giving vehicle, you've needed sort of AUD 20,000 or AUD 50,000 was really the minimum threshold. And that's a lot of money for people to have sitting there to just seed their structured giving account. So part of the development of the portal was to lower that threshold and remove some of those barriers. So people can now start with a minimum of AUD 5,000, which is a much easier entry point. And the whole theory is you start people giving during their lifetime when, you know, they're my age, for example. And people are starting to wanna bring their children into the conversations. And they're looking at philanthropy as not giving a residual of their estate when they're 95.
It's slowly building their philanthropy through their lifetime, teaching their kids about the importance of, of sharing equitably their wealth and building it up, watching it grow, and then having the joy of actually participating in giving and working through conversations with their family around, "Well, what's actually important to us? Why are we giving? And who are we gonna give the money to?" Because giving money away is actually incredibly difficult if you wanna do it with impact. And that's where teams like ours really come to the fore because it's a complex conversation to have. And many advisors who are there in the room at that point when families have the opportunity to start thinking about giving, they're not equipped to actually facilitate that conversation and then refer it on in many cases. So we're certainly working on that.
In terms of referrals into your platform, are accountants important? I'm just thinking in terms of you've got a big tax event coming up. Maybe this is a good opportunity to manage that and do something good. Is that a source of referral for you and just.
Yep.
Interested in what sort of that platform might look like for you?
Yes. Its accountants are a great source of referrers. They come from sort of right across the whole professional services spectrum. But that goes to the point around when you're in the room and there's an issue, whether it's a tax issue, whether they just have surplus assets they wanna share, whether they don't you know, they wanna talk about their succession around their family, that's sort of a critical pipeline for us. And the acquisition with AET has really opened our eyes to that referral network. So the AET model was very much based on a referral network. And when you put the EQT and AET network together, we've got a really nice distribution piece. But I guess that the technology to be able to scale and get people into funds quickly and effectively was the piece that we were missing.
So the acquisition plus the development of the technology has really put us in a position now to appeal to referrers because they just, when the conversation is had, they just wanna be able to say, "Here's what you can put your money into. Here's how you get it done. Email this person or go to this link." And it's easy. They can be set up within 48 hours if they go into a sub-fund. So it's sort of removing those traditional hurdles for people who go, "Oh, maybe I should give to charity." And then five years later, they actually haven't done it. So I'm not sure about the size of the market, though, in terms of the referrers.
Other questions?
Sorry.
Adios , thank you, Ian. Thanks, Jody. Thanks, Riley. Hopefully, that's given you a really great insight to Trustee Wealth Services. We can't cover the whole business in enormous detail, but we've covered the big sections of that business. So anyway, we're gonna take a 10-minute break now. So grab a cup of tea and to the restrooms. And then we'll come back to hear from Andrew Godfrey and his team on corporate and superannuation trustee services. Thank you. All right. We might make a start. Good morning, everybody. And it's great to be able to share some insights with you today on our corporate and superannuation trustee services business. My name's Andrew Godfrey.
As Mick said a little bit earlier, I've got about 35+ years in financial services, predominantly in superannuation and wealth, and was fortunate enough to join Equity Trustees in February of 2023, so just over 12 months ago. When I came on board in February 2023, it was to lead our superannuation business. In August of last year, we also made the decision to bring our two businesses together, what has been known as the CTS business and our STS business, so our corporate trust business and our superannuation business, to bring them together. We saw a great and we continue to see a great opportunity to leverage the capability and capacity that exists across those two businesses. They are different in terms of our clients are different generally. We're regulated differently.
However, what we do, there is a lot of commonality that exists between the two businesses. And we'll share a little bit of that, with you today. Joining me, today, I've got two exceptional leaders with me today. One, Johnny Francis. Johnny has been with Equity Trustees now for two and a half years. He came to us after a very successful career with Perpetual. And, Johnny has been a significant reason and, driver of our growth, particularly in the corporate trust business over the last two and a half years since he's joined here. And to give you an example of that and evidence of that, thus far in this financial year, we've established 50 new funds in our fund services business. And we have a further 20 funds that are due to be onboarded by the 30th of June this year.
So, some really strong growth in our CTS business that has been driven with Johnny and his team. I'm also joined today by Mary O'Connor. Mary has been with Equity Trustees now for seven years. Mary, in the last seven years prior to joining the CSTS team in November of last year, driving our transformation and change across the business, was responsible for corporate development within Equity Trustees over the last seven years and has had and has led our efforts across all of our corporate activity, and most recently, the AET acquisition, over the last labor of love, probably the last two or three years, Mary. We are almost finalized our organizational structure of the combined businesses. We are still running the businesses separately in terms of identifiability of our corporate trust business and our superannuation business.
We have one executive role that I'm currently finalizing and should be announcing next week. That is the role on the right-hand side. It's a general manager of governance, risk, compliance, and regulatory affairs, quite a long title, but is really about the continued maturing of our operating model and the continual maturing of our governance capabilities within the organization. And you'll see why that is so important as we do go through. Today, we're gonna spend a little bit of time giving a little bit of a deep dive into the business as a whole, but then going into our superannuation business, which I will take you through, our fund services business.
Then we'll conclude that Mary will give a little bit more detail on why we've been bringing the two businesses together and also some elements of our change program that we're driving through. So to give you a bit of a sense of, of our business, combined, AUD 170 billion across 520+ accounts. So both businesses are growing very, very strongly. As I said, in our CTS business, our corporate trust business, we've implemented 50 funds so far in this financial year with a further 20 to, to onboard. And our funds under supervision are now in excess of AUD 105 billion. It's also been a successful period for our superannuation business.
We have 14 funds that we are trustee for, responsible for, now larger than or greater than AUD 60 billion in funds under supervision and responsible for the superannuation for over 800,000 members across those that superannuation, that superannuation business. That's grown very, very strongly in the last since 30th of June, or since 1 July of last year with the bringing on board of new clients and also strong organic growth from our existing clients. We'll give you a little bit more detail of that as we do go through. Mick talks through we've got an enviable client list, both in terms of local domestic fund managers and global fund managers and also superannuation providers. I think one of the interesting things that we're now seeing as well is we're getting commonality of clients across both our superannuation and corporate trust business.
So when we look there on the right-hand side of our superannuation providers, Resolution Life and also the Future Group, we are also the responsible entity of their investment products, that they are utilizing for their superannuation funds and more broadly. And so we're seeing more commonality of services that Equity Trustees provides across our client base. And you also look at HUB24, our fastest growing. In fact, HUB24 is the third fastest growing superannuation fund in the country. And we provide services, trustee services for HUB; we're the responsible entity for a large number of managed investment schemes that sits on the HUB24 platform. And also, as Ian outlined, they are a critical provider for us going forward, in the TWS business. So more and more, we're seeing commonality of clients across our client book.
We do have a very unique position in the marketplace that we utilize our role as trustee and responsible entity is one where we oversee an enormous amount of service providers. As you can see there, we've got access to and oversight more than 50 third-party service providers across both our responsible entity and also our superannuation trustee business. That gives us unique insights. It gives us a unique opportunity to see the caliber and the capability that exists in the marketplace that really no one else is able to see across the breadth of our marketplace. It also produces some challenges in terms of the oversight of such a large number of service providers.
In the back half, and we'll talk about this a little bit later, in the back half of this year, we're also going to be looking at what a next-generation product could look like in the responsible entity space that has a more standardized operating model, as opposed to the multitude of service providers that you see there. But it does give us incredible insights into what is happening within the market. We've got deep expertise as trustee companies. And interesting, when you look at both the tenure, which you can see averages about four years tenure across the superannuation, the fund services, and also our debt and securitization business and custody real assets, around about four years is the average tender tenure, tenure. But what you will see is the average industry experience, in the majority of cases, is far greater than 20 years.
That's very reflective of trustee companies that you need that deep domain expertise. That is highlighted in terms of all of the teams that we have within both of our businesses is that deep domain expertise that we need, whether that be the way that we manage relationships, whether it be, as we looked at before, the way that we oversight service providers, whether it be the way that we manage and look at product disclosure. All of that requires deep expertise within our businesses. As our businesses continue to grow, we continue to bring people with fantastic and long-term experience into the organization. A little bit about Super. You can see there the growth. The growth has been very strong in our superannuation business over the last five years since its inception.
We can see there from the financial year 2019 through to 2024. The number of funds hasn't changed much. I don't expect the number of funds to change terribly much going forward into the future. But what you will see is there will be funds that will wind up over a period of time. We've got three, for example, that are winding up at the moment because of subscale reasons, because of merging into other superannuation funds. But what we will see is the funds that we have become trustee for will be much larger in size going forward into the future. So we do expect that number of funds to remain pretty much the same, but we expect our funds under supervision to significantly increase over time. That growth in the last 12 months has been driven in two particular areas.
One, we've had strong new clients coming in, and you would have seen the Guild Super, Future Super, ClearView as three funds, for example, that have we have become trustee for in the last nine months or so. We've got a strong pipeline also. We'd expect two or three more clients for the rest of this year to come on board. Should also point out that we're experiencing strong organic growth with our clients. As I mentioned before, HUB24 in particular is a very fast-growing superannuation fund. The majority of our clients are in good, strong growth modes. A little bit about what our fund makeup is. You can see there that we have, in essence, four main types of segments within superannuation that we provide trustee services for.
We provide services to and trustee services to platform-based funds. HUB24 is an example. Centric Wealth is another example in that space. We also provide trustee services for Master Trust, the Future Group. So the Future Group comprises Guild Super, Future Super, Verve Super, Smart Future Trust, which is the old Aon superannuation business. They're in more what you would call, the Master Trust segment. We have a legacy trustee for Legacy Life office products. Resolution Life is an example in that space. And we also have small APRA funds, which came to us via the AET acquisition. The small APRA funds is not a segment of the market that many people know much about. But think about SMSFs, but with an external independent trustee.
To give you an idea of the scale, the SMSF market in Australia is around about 600,000 SMSFs in Australia. There is less than 1,000 small APRA funds. We think it's an underutilized and underleveraged area in the market. We think there are opportunities for us to grow in that space. We're currently in the process of outsourcing the administration to SuperConcepts, which is the old AMP SMSF business. Post that transition, which will occur in June of this year, we are looking at implementing a growth strategy in that space. To give you an idea of some of the numbers, why we think there is opportunity, every year about 15,000 SMSFs are terminated every year for reasons whether it be through incapacity or for other reasons. We think there is an opportunity for small APRA funds to play a role there.
There are also areas such as overseas directors, overseas executives, and also those that continue to be banned by the ATO in being able to operate as SMSF directors. To put that in perspective, in the last quarter of last year, in December of the December 2023 quarter, 150 SMSF directors were banned from being made directors, which generally leads to their SMSF being terminated. So if we can access those markets, we think that there is good opportunity to grow our small APRA fund book. Similar to what we've talked about before, in the way that we work, the way that we operate, we are at the center of the wealth value chain. I often talk about at Equity Trustees from a trustee perspective, we don't do a lot, but we oversee those that do. So we are not administering funds. We are not promoting funds.
We are not driving product for funds. But we are oversighting all of those providers that are doing that work. And our role is to ensure that we're looking after the best financial interests of members. And we play a critical role in that. Most of you that will obviously know the superannuation industry, we are a little bit unique in that we operate in a one-to-many basis. So we are one trustee that is trustee for multiple funds, in this case, 14. In the majority of cases, there is a one-to-one relationship of a single trustee to a fund. So think of an industry fund. Think of a retail fund. We, we are absolutely of the view that the role that we play of being in that one-to-many is an important part of our industry.
We think, importantly, as time goes on, we'll be able to play an important role for many funds going forward into the future. I'll be quick with this one. But in terms of why would a superannuation trustee that is currently trustee for a fund, why would they think about utilizing an independent trustee? There are a number of reasons that we've put there. There is a reduction in risk in terms of reducing the risk from an organizational perspective of the fund for which they are trustee for. You're reducing the inherent compliance burden, and that is only exponentially increasing, particularly from a regulatory oversight perspective. We manage that relationship with the regulator, and I'll show you in a second the amount of regulatory change. I've been in the super industry now for over 35 years.
I've never seen the amount of regulatory change and oversight that is occurring now. And that is only going to increase, not decrease. And importantly, it, it enables that promoter to focus on their core business. So many of our clients, their focus is on their distribution, is on their brand, on member servicing. Our role is to enable us to focus on the trustee, looking after the best interests of members, and enabling, the organization, that promoter, to focus on what their core business is. So very quickly, from an Australian superannuation industry, dynamic, assets are now at 30th of June 2023. This slide doesn't include SMSF numbers, but is about AUD 3.2 trillion as at 30th of June 2023. That's forecast to, to more than triple over the next 20 years.
It's important to understand that in terms of the growth potential for our superannuation business, but also for our responsible entity business that Johnny will talk about, because that is the growth that, we believe will be the future of, of our success. The industry is going to continue to consolidate. We've seen that over time. The number of funds, as you can see there, has almost halved. I see the rate of that closure of fund and that consolidation of fund will still continue, but will continue at a slower rate. But we do see opportunities that will come through that consolidation. As I mentioned, regulatory change is huge. There's a lot of acronyms that I could use here in terms of implementation of 230, 515, 190, 900, all of the APRA prudential standards.
That is all ahead of us over the next 18 months to two years. And once again, I think that provides an opportunity for us to continue to grow, where trustees, existing trustees, are going to find it increasingly difficult to keep up with the amount of change that is required within the marketplace, to keep up with the level of regulatory oversight, and the importance of having an independent trustee and the value that we can create for promoters, for members. I think that the regulatory change is a significant opportunity for us. So in closing, our strategy is to continue to grow. It is to really, we've put a target around AUD 150 billion of funds under supervision. The next period of growth will be significantly larger clients. And so we do see opportunities both in the retail segment, particularly in the retail segment.
We think that there are opportunities in other segments as well that we would be able to demonstrate the value proposition that an independent trustee such as ourselves can bring to a fund. As I mentioned, we see a growing opportunity within our SAF business going forward as well. We need to continue to invest in capability. To be an independent trustee, you need that deep domain expertise. We need to continue to mature our governance approaches, our approach to oversight, and our approach to being a trustee. We will continue to invest and focus on that. Importantly, we need to maintain and continue to work closely with the regulators, particularly APRA, ASIC, and AFCA, in ensuring that we're meeting their requirements, but also demonstrating the best-practice trustee services that we, we want to be renowned for.
So in summary, we want a growth from a diverse range of fund types and sizes. You saw, earlier we talked about platforms, Master Trust, Legacy Life office products, small APRA funds. We will continue to offer a diverse range of services across those different segments. We will continue to have a relentless focus on member outcomes. And that is critical. That is how we get measured when you think about performance tests and when you think about the way that industry is measured these days. We need to deliver, to ensure that we're building a scalable and sustainable business going forward in the future, that we manage the growth that is in front of us well. And it comes back to the bringing together of the two businesses.
How do we make sure and ensure that we leverage the capability and capacity that we can bring together as two business units coming together, as opposed to the separate business units that have been operating in the past? So that's a bit of a deep dive into superannuation. So I'll hand over now to Johnny Francis, who'll walk you through our fund services and CTS business. Thanks, Johnny.
Thank you, Andrew. My name's Johnny Francis. I am the general manager of fund services at Equity Trustees. As Andrew mentioned earlier, I spent seven years at Perpetual, and I joined EQT about two and a half years ago. So I was the head of sales and relationship management at Perpetual, the corporate trust business. I joined EQT to effectively start the sales process at EQT. And I've moved into the general manager role here. So I'm probably in a fairly unique position in that I've worked for the two largest trustees in the market. So I will give you an overview of our corporate trust business. Really, there's three pillars to the business there. Our fund services team, which is the trustee or responsible entity business, we're there to support very, very large global fund managers, as you would have seen, the likes of T.O.
Price and Wellington and Albus, Sal and Gray, very, very sophisticated fund managers who are looking to raise capital in Australia. We also support very strong domestic groups. So we've got some very, very successful domestic managers who, if we think they've got good pedigree, good track record, and they're likely to succeed, we will be very happy to support them. I would say we're very selective in that business. There's a lot of stuff that we do turn down because it's either too small, too speculative, or unlikely to be successful. So for us, it's really the key is to work with the right counterparties. In my mind, we're trying to attract institutional-grade quality counterparties, and they'll be successful, and so will we. The second pillar there is our custody and real assets business. So this business has only been around a few years.
We reinvigorated it a couple of years ago when I joined. We really focused on what I would call transactional custody. So we're not doing equities. We're not doing complicated hedge funds. So we're not competing with the likes of State Street and J.P. Morgan. It's bespoke for real assets, potentially feeder funds, holding units, or venture capital, private equity products. The business is going quite well. We've got about 60 appointments there. The AUM is about AUD 7 billion. Finally, the debt market and securitization business. It's a small business. It's been around since 2017. The key there is trying to work with the banks and the non-bank lenders for their securitization warehouses, and then all the ancillary services that hang off that. Turning now to where our clients are based.
So this is really focused on where we act as a trustee or a responsible entity. The book's probably 50/50. Half of our clients are offshore. Half of them are based in Australia. The pipeline's very similar. We had a lot more activity and interest from global fund managers since COVID-19 because they've been able to come down. The key, really, is distribution. So, for the global managers, the fly-in, fly-out distribution model is a bit more challenging. If they've got a local presence or a third-party distributor, that really helps them succeed. In terms of the asset allocation, you can see there, it's quite broad. I think historically, we had a lot more focus on global equity managers, Australian equity managers. But over time, in recent years, that's really shifted.
We're doing a lot more in alternatives, private equity, venture capital, fixed income, and particularly where interest rates are now, the fixed income products are very, very attractive. There's definitely more increased complexity for those products and more differentiation because ultimately, that's how our clients are going to succeed. So that leads on to the final section there, which is the number of products we have that are registered funds versus unregistered. The registered funds would include ETFs, which have become very, very popular. We have about 15 ETFs and several more in the pipeline. And that would also include funds that are on platforms that are attracting indirect retail money. So if it's a registered product on Hub24, Netwealth, or Praemium, for example. We do have a slice there of what we call non-discretionary trusts.
So that's where we've been appointed as a directed trustee model. It's typically a large life insurer. And it's their own money. And we're effectively directed to allocate those funds. A little bit more focus just on the debt markets and the real assets business. So as I mentioned earlier, in the securitization world, we're really focused on the large securitization warehouses because that's where we would earn basis points fees. All the ancillary services that hang off of that, such as a security trustee or an issuing or paying agent, they tend to be more fixed fees. Referral sources really is around the law firms and reciprocity through our existing network. And the business is going very well. It's 35% CAGR year-over-year. And there's definitely some good opportunities for us to grow both inorganically and organically for that business.
And then moving on to the custody and real assets, it's largely the same. It's been only a few years that we've been very focused on that particular part of the market. I would just point out on the bottom right there, the barriers to entry to be a standalone custodian are very, very high. So if you're a custodian for a retail fund, you'd need AUD 10 million of NTA capital, which not many groups are willing to put aside. So there's not many standalone custodians in that market. So we think there's some great opportunity for us to grow there. Moving on now, just a summary, really, of the overarching funds management industry and how it impacts our products. So on the left-hand side there, we can see superannuation, which is now, I think, AUD 3.5 trillion, Andrew.
That's grown 8% last year. About half of those assets are invested into managed funds, which is where we then see the benefits of those asset allocations. On the right-hand side there, you can see there's 3,600 registered funds in Australia. We have about 10% of that market. But we're one RE, and there's 420. So we think there's massive opportunity, particularly for those larger groups who, as you can see there, operate maybe 46% of the schemes. We think there's probably some smaller REs that maybe may look to outsource because it's just not commercially viable for them to continue to do so. Or there may be some large-scale opportunities for bigger fund managers who just potentially would like to outsource the RE function to us.
On the bottom left there, Andrew mentioned that we've been working very busy setting up 70 funds this year. I think last year, we set up 39. So we can see that there's an enormous amount of activity. Now, obviously, we need to make sure that the team's adequately resourced. We certainly are investing in our people to make sure that we have the right resources there to ensure speed to market and our clients are happy. We have a dedicated onboarding team. We have internal legal counsel supporting them. Then we have a team of relationship managers. So it is, it's a real engine room to bring these, these products to market. Finally, just on the ETFs there, that's becoming a very, very large trend for us.
We have a number of clients who are looking to convert their existing funds into what we call dual access ETFs, so where they can get access to the retail money through the exchange or the indirect, or the wholesale money through their existing funds. So that's becoming quite an important piece for us. We have funds both on the ASX and the Cboe exchange. This is just a quick chart to show you, I guess, what we do as an RE and our role. So very similar to Andrew's slide earlier, effectively, we outsource all of these functions to specialist providers. Our outsource model, we believe, is the best in the market. It's truly independent. There's no conflict. We're not providing fund administration. We're not doing audit. We're not doing registry. We're really there to work with best-in-breed at what they do.
And everything that remains is our responsibility to monitor, discharge our duties, and also protect the, the best interests of members. So we would appoint all of those providers. We would then appoint the investment manager, as our client. Legally, we are on the hook for everything. And all of those individuals become our agents. So that's where the we take essentially, we take the risk. But we will always have a duty to, to members to protect their best interests. One thing I would say is, as I think Mick mentioned earlier, this, this model, particularly in the registered space, is very, very sticky. So to change RE does take a, a unit holder vote of 50%, by value of the investors. So if you have a retail fund with, say, 1,000 investors, you need to get half of them by value to vote in favor of a change.
It is quite difficult to move. This probably comes back to my earlier point of, it's for us, the key is to secure that initial client for that first fund. Then the chances are that they'll continue to do new products with us. So what's our value proposition? It's quite similar to Andrew's comments on the superannuation piece, to be honest. We're reducing risk for our clients by outsourcing the trustee function. We're reducing the regulatory burden and the cost of capital. I've done some analysis on what it would cost to be an RE. I don't think you could do it for less than AUD 1 million once you've got the NTA, the board, the directors, the compliance committee members, internal compliance people. It's an expensive exercise.
So for a small RE running two or three funds, it probably doesn't make sense. If you're an enormous manager running, you know, tens of billions, it does make sense. But certainly, for the smaller groups, it's very attractive to outsource that. We allow our clients to focus on what they're best at, which is running the money, asset allocation. And then we focus on what we're best at, which is the monitoring and the compliance. I think there's ever-increasing regulation in our space. That's not going to abate. We've seen RG97, TMDs, DDO. The next will be ESG. So I like to say regulation's our friend as a trustee because I think, particularly for the smaller trustees, it's very, very difficult to keep on top of all this. So we're in quite a unique position there.
I would just say, our value prop versus our competitors, notwithstanding our asset management team that's tailored for our clients with Darren, we're not an asset manager ourselves. So there is no distraction. This is absolutely core for our business. Really, there's two very large trustees in the market. Then there's an enormous gap. It's really sort of privately owned businesses who effectively are controlled by one or two members who are often looking for an exit strategy. So we're in a very unique position there as well. So what's our strategy overall? Well, really, we want to be the leading premium provider of trustee services both to domestic and global fund managers in Australia. We're very focused on growth. That's very, very important for us. We've been very successful in the last two or three years. That's continuing. The pipeline's very strong.
So we're very, very positive about that. Servicing our clients is key. It's a huge differentiator for us. Otherwise, in some sections, it can become a little bit commoditized if you're not, you know, adding value to your clients. We've rolled out strategic account plans to key clients. And we continue to invest in those relationships. I think, having a team of specialists is critical to what we do. Often, the trustee, probably when things are going well, you might not need them. But when there's a problem or there's something curly comes up, that's when you really, really rely on a trustee. We have an amazing team of people, individuals that have been around 15, 20 years plus. And having that experience in the team is really, really valuable. There's a team of about 60 specialists across audit, tax, compliance, legal, onboarding, BD.
So it's a pretty well-oiled machine in that department. And, finally, we believe our model as a true independent trustee is the preferred model of choice. And we expect there to be continued growth in our business. So to summarize, we think there's a fantastic opportunity of pipeline, both in organic and inorganic opportunities. There's potentially some smaller trustees who may look to exit. And then there's some very large potential appointments from larger in-house asset managers potentially looking to outsource their RE function. From a client service proposition point, that's very, very important for us. Reciprocity is everything in our industry. It's a very small market. And everyone talks. So if we do a good job and service clients well, then we should continue to grow.
We would like to deliver on all our transformation agenda, which, Mary will talk about shortly, but really implementing technology and leveraging the, the synergies between our superannuation business and our corporate trustee business where, where we can. So on that, I'll hand over to Mary. Thank you.
Thanks, Johnny. So I'm going to talk briefly about why we've decided to bring together the corporate and superannuation trustee businesses. And then I'll briefly touch on our transformation program and where we're at the moment. So in August last year, it was announced that we'd combine the corporate and superannuation trustee businesses to form CSTS. Our CTS business was established over 20 years ago and has grown substantially over this time. And then just over five years ago, the STS business transformed to move towards a pure trustee focus.
In large part, the change in that STS business was modeled on our successful CTS business. So while both businesses have been growing, experiencing some very strong growth individually, we believe that bringing them together will provide them with additional scale to support an uplift in client and member service quality through consistent processes and procedures and increased utilization of technology. Secondly, it will support us in achieving better economies of scale. Finally, it'll facilitate us to grow more easily and maintain our margins. As mentioned earlier by Andrew, the businesses have material commonality in clients and service providers. They also perform very similar activities. So some examples of that, as a trustee, we're responsible for the review and approval of all product disclosures. So we're bringing those teams together so they can do it better and more efficiently.
Another example is we're responsible for the oversight of our clients and all the service providers. That includes a range of activities such as monitoring and due diligence that we perform over the course of each and every year. Importantly, both businesses have the same underlying purpose. That is, they have a fiduciary duty to act in the best interests of unit holders for CTS or fund members for the STS business. Following Andrew's appointments, a dedicated business transformation function was established to support bringing the businesses together. This program is expected to continue for the foreseeable future. Importantly, the program is not expected to require a material capital spend.
But rather, it comprises a range of business improvement activities that will be supplemented by the implementation of standardized off-the-shelf type technologies, noting our business is one of oversight, which Andrew mentioned earlier. So in terms of this calendar year, some of our areas of focus are, firstly, improving our client service, so aligning client service levels with client value. So we've put in place strategic account plans for our most valued clients. And that's been received really well. And we're also increasing the cadence in which we communicate with our clients with a focus on providing additional value-added services. So as an example of that, we're providing clients with insights on industry trends that we're observing, noting our unique position in that we oversee many hundreds of funds.
Secondly, we've recently implemented an organization restructure to enable each of the businesses to, firstly, collaborate better, secondly, communicate better, and thirdly, support improving our competitiveness. It's key to note that this combination is to support service levels and growth. It's not to remove headcount or cut costs. Our client-facing teams will remain separate. In the near term, the functions that sit behind that will work together more closely rather than merge. Of course, we'll continue to maintain our superannuation-focused team who have such a strong credential superannuation focus. I think finally on this point, and Andrew did mention this, a core focus is to uplift our governance capabilities, in particular through the hiring of that GM of governance, and help us support a more future-focused mentality within our business, particularly as it relates to that area.
Thirdly, we're undertaking a program to streamline processes and procedures and to clarify roles and responsibilities. This will be supported by the use of workflow technology and also better utilization of Salesforce. Fourthly, we've commenced a review of our data strategy. This will help us in a variety of areas, including more dynamic business management reporting and decision-making, as well as providing data insights to our clients. Finally, we're focused on uplifting capability in a variety of areas, including some aspects of our culture, also selected technical areas such as valuation oversight, as well as better supporting our staff. I look forward to providing you with updates as to the progress we're making on this transformation program over the course of the next few years. I'll now hand back to Andrew.
Thanks, Mary. Thanks, thanks, Johnny. So just to summarize, Mary's points there is that we are going to continue to ongoing invest to support our growth, and mainly from a capability and capacity point of view. We are a people-based business, as you've heard a number of times in the past. We need to continue to mature our approach. The bar is continuously being raised. And so we need to ensure that we're actually ahead of that bar being an independent trustee and the role that we play. We need to leverage data, Mary talked about before, a review of our data strategy and the way that we're going to be utilizing data to be more proactive in our decision-making. We need to simplify and streamline our existing book of business. We've got a lot of complexity that exists within our book within our business.
How do we simplify that? How do we streamline it? How do we make it easier for our people to deliver great service to our clients? And as I mentioned a little bit earlier, that we're wanting to look at a next-generation corporate trustee product, in the back half of this year, which really challenges the way that we think about responsible entity services, our ability to be able to onboard products in a far more efficient and timely way. And we think that there are opportunities for us to really transform the way that we think about that. And that's something for the future. So with that, we might start some questions, Mick.
Okay. I'll start with one. There was a question, where all the points have said greater than AUD 150 billion.
Yep.
But is that an addressable market? Is that a vision? What, what, what are we having to do?
It's a target in terms of the addressable market that we think is today, where we think about the future, particularly in the retail segment, that that could be exceeded with one appointment. For example, if we were to become trustee for a retail fund that said, "We want to concentrate on our core business and utilize the services of Equity Trustees," then that could be well exceeded through one appointment.
Are there retail compensations? I guess, sort of externalize that largely? The goal and costs, are there compensation points that they're considering to externalize? And again, right to that, the effects of, the cost.
Yeah. You, when you look at a lot of them have large, if you like, Equity Trustees-type services within their own organization. And so, you know, we're in market having conversations with all of the retail segment and other segments. And it's going to depend upon those resale retail segments is our operating model. Are they amenable to that? Is that something that would be attractive to them? And I think one of the other elements is that there is just continuous change happening in superannuation, particularly from a regulatory point of view. And we need to make sure that we've got strong relationships with each of those organizations because that can change pretty quickly. And as I said before, around regulatory change and regulatory oversight, it's the most intense that I think it has ever been. And I think it's only going to increase.
That brings our proposition, I think, into play, very much so. Mick, would you add?
Yeah, yeah. I'll just add a little bit to that, Mick. I don't think Andrew or I think that we're going to write a AUD 100 billion fund tomorrow.
No.
Right? But the reality is, you could expect that we would have talked to virtually every major retailer over the last couple of years with all of them having an interest, right, now, you know, whether that ever translates to actually making change. It's quite a significant change. But clearly, the ramPhing up of the regulatory oversight, it's uncomfortable, for sure. It's not as uncomfortable for us because it's our core business. We're not conflicted. So, you know, we will continue working on that.
I think, particularly given that our superannuation business in its current form is five years of age. We need to be in market demonstrating that value proposition because I think, you know, three years ago, Mick, you wouldn't have as much of a conversation in that retail segment because they probably didn't know that the services that we were providing. We need to be positioning two years' time, three years' time. But if there is a AUD 100 billion fund and they're making a decision, "Hey, we, we don't want to do this anymore," we need to make sure that our offering and our value proposition is well known. Yep.
Any other questions? Okay. Market and conversation on, you know, whether you're part of the RSE or the RE or the.
Sure.
One of the large supervisors that had his own context.
Sure. So, look, it is difficult to take existing clients across. I think there's no doubt about that if, you know, if they've got processes and policies and documents and a very established sort of path with the incumbent. It is quite difficult to change. It's probably more about targeting either the next warehouse from that client or going for the new non-bank lenders or the neobanks or the new issuers and getting their first transaction. And then off the back of that, you'll see that coming through. Perpetual obviously is enormous in that space. They do have a lion's share. But in our mind, there's only sort of we can only go upwards, I mean, because there's, you know, so, we still think there's a lot of opportunity there. There's only a few smaller trustees that also provide that service.
So, we believe that with our sort of brand and strength and balance sheet, that we're in a good position to attract some good clients in that space.
Can I just.
I'll ask a follow-on from that question. The amount of activity in that securitization warehouse space over the last year or so, do you see potential for that to improve and therefore a better opportunity for yourselves to win those new deals?
Yeah. I think interest rates have had a big impact on that. It's very, very hard for people to price their products, given the volatility. But interest rates have sort of stabilized. So we're definitely seeing a lot more activity and interest in that space now.
Yeah. Other questions for Andrew or Johnny or Mary?
Yep. Just, given the intensity of the regulatory environment at the moment, how do you ensure that you're adequately compensated, you know, as your role as a trustee?
Yeah. It's a great question. And we continually work with the promoters of our funds, to ensure that we provide a set of services for the value for the price that we provide, and particularly over the next 18 months to 24 months where there is an increasing amount of regulatory activity and regulatory oversight, that will be a co-funding arrangement, because we need to invest to make the right capability on board to implement the changes that need to be done. And we're at the commencement of that process now. Any final questions? Andrew? All right. Great. All right. Thank you.
Fabulous. Thanks, Andrew. Thank you, Mary. Thanks, Johnny. We will welcome Georgie Taylor up front. She's going to talk to you about our number one asset, our people.
Thanks very much, Mick. Good morning, everyone. I'm Georgie Taylor. I'm the Executive General Manager of People. I've been with Equity Trustees for 18 months now, having joined just prior to the AET acquisition. I'm really pleased to share with you an overview of our people strategy today. As Mick highlighted, and as you know, we have a very clear and compelling purpose. That is to help people take care of their future. We do that by safeguarding their wealth now and for generations to come. Now, not only is this important strategically, but it's equally important from a people and culture perspective. It sets the scene for our people strategy. So accordingly, our people strategy cascades from our vision and purpose and is to enable a collaborative, inclusive, and evolving workforce.
We have four key pillars of our people strategy, which you can see here. I'll now talk to these in more detail and importantly, highlight some of the programs and initiatives that we have in place to deliver on our strategy over the next 18 months. Our first pillar is to attract and retain high-performing employees in a competitive market. We know through surveys and from feedback from our people that connection to our purpose and meaningful work is one of the key elements of our employee value proposition. Our employment brand is strong. People who work in related industries know us and want to work for us. And we get great referrals. And as you've heard today from Ian, Andrew, and the teams, we attract people with specific skills and capability, deep domain expertise.
Importantly, people who really want to make a difference in the lives of others. We're absolutely thrilled with the capability and skills that we have acquired from the people of AET through the acquisition. From an employee value proposition perspective, another key element that we are very aware of is that our people have a very strong affinity to our philanthropic work. As Jody indicated, last year, we reached a new milestone with more than AUD 1.23 million distributed back into the community. We have very high levels of engagement and enablement. Last year, we hit the high-performing norm for the first time with 75% engagement and enablement. We also have very low turnover rate. Our quarterly data's sitting at about 2.2%. So we do a really good job in both attracting and retaining key talent.
Over the next 18 months, a key focus for us is develoPhing a formal graduate and intern program to build our own talent. We've already been doing this successfully in the technology team. Our aim is to expand this more broadly across the organization. We've also commenced work on the development of an enterprise-wide succession development program, which is really important to us. We're expanding our second program. This is to broaden the skills and capability of our people and create greater mobility opportunities across the organization. We've got a number of fantastic examples of people who've participated in secondments and have been promoted as a result of that. Our second pillar is to build internal capability to meet the needs of our evolving workforce. Last year, we launched our AAA development program, which is to support the development of different organizational cohorts.
And there are three programs here: Accelerate, which is focused on our emerging talent; Advance, which is a program that all people leaders participate in; and Amplify, which is a specific coaching program that's targeted at alumni of the Advance program. And this year, we'll be looking to introduce people leader induction for everyone that's new joining Equity Trustees or new people leaders and also an MD-led mentorship program. I'm very excited that we are piloting a trusted advisor program this year. And that will be focused on supporting people with deep domain expertise to adopt a trusted advisor or partnership approach and mindset in collaborating across the business. The third pillar of our strategy is to maintain a values-aligned, safe, diverse, and inclusive culture. And as Mick described earlier, we have three simple but very powerful values: trusted, accountable, and empowering.
I'm really proud to say I know that if I walk the floor, or any of my colleagues did, everyone would be able to articulate those values because they resonate. That is testament to our people and culture. We're currently in the process of develoPhing a diversity inclusion committee that will drive initiatives across the organization. We also have a focus on ensuring we have a psychologically safe workforce. This is particularly important given the nature of work that we do. Last year, we introduced mental health first-aid training with our health and personal injury team, where their day-to-day work, as you've heard today, is supporting clients, our vulnerable clients, and often dealing with very challenging and stressful situations such as clients with acquired brain injuries or the death of a loved one.
The mental health first-aid training helps people to lead with empathy and resilience and also to help build their own internal resilience as well. After this successful pilot, we'll now be rolling it out more broadly across the organization. This year, we'll also be looking to introduce bystander training to equip our people with the confidence and the skills to speak up if they do see behavior or conduct that's not in line with our values. We also have a health and wellbeing program called Equilibrium, where we have activities, events, and webinars, that run across the business. One of the highlights last year was a workshop, a resilience project workshop facilitated by Martin Heppel, which is particularly important for an organization like ours, which is growing and transforming rapidly. The fourth pillar of our strategy is to enable employees with new technology and information systems.
From a people perspective, we began the process of building our internal change capability with the introduction of change management expertise, change hacks, and change is now embedded in all of our enterprise projects. At a local level, this year, our people team have just commenced the process of Workday implementation. And Workday will become our new human resources information system and single source of truth for all of our people data. And this follows the implementation of Workday for finance phase one last year. And we're really looking forward to launching phase one of our program later this year. And from a regulatory and compliance perspective in the remuneration space, we've been very focused on the implementation of CPS 511 and preparing for the FAR regime next year. And that is, of course, specific just to the superannuation part of the business.
In a moment, Phing, our Chief Technology Officer, will also speak to other enterprise technology projects. What is really important is that from an internal people perspective, these projects will significantly enhance our user experience, our productivity, and our efficiency and set us up for future success. Thank you. And to liven things up, I'll now hand over to my colleague, Owen.
Well, Georgie, just before you go, just see if anyone has any questions on our people strategy. Well, Georgie's up on stage. Looks like you presented with absolute clarity, Georgie. So that yeah. Okay. Thank you.
All right.
Morning, all. I'm Owen Brailsford, Chief Risk Officer here at Equity Trustees. As Mick mentioned, I've been here approaching six years now. My background has been in risk management for almost 28 years. Times were tough in the U.K. Back in the early '80s, I started work at 10. I've obviously worked in sort of risk management in general insurance, life insurance, investment management, superannuation industry over that period. As Mick mentioned, at APRA, the regulator. So look, firstly, great to see all the shoulders are still back. There's no heads on the table. We don't need any emergency mental health resilience training rolled out to investors or prospective investors. I think really what I want to talk to you about is risk management. I'll talk about why it matters to us.
I'll talk about how we approach it, and why we believe that that places us well within the sector. Then I want to talk a little about the regulatory landscape, both the challenges that that represents and indeed the opportunities Andrew and Johnny have touched on those already a little. So the key risks, really, you know, the things that we worry about are the things that are going to impact our key purpose. And our purpose, as we've talked about, is of fiduciary responsibility to some 850 members, investors, and beneficiaries across some thousands of trusts. As you heard this morning, our business is actually relatively complex. There's many different parts to it and many moving parts to it.
So, making sure that we meet that promise to help people take care of their future, that we act in their best interests, and that we act with integrity and in a way that builds trust is extremely important to us. What do we worry about? We worry about the things that can do damage to that and particularly can do damage to the core assets of this business: the people, the licenses, the brand, and the balance sheet. Events that might erode trust, events that might degrade our brand, for example, you know, reputational events would be extremely damaging. We have no desire to be on the front page of the FIM review. As Georgie's mentioned, as Mick mentioned earlier, many of our staff are purpose-driven.
We therefore don't want to have events that cause that purpose, them to question that purpose, or indeed call into question their integrity or their reason for being part of Equity Trustees. Risk that gives rise to challenges with regulators that might imPhinge on our licenses, that might imPhinge on our ability to deliver the services that we deliver would, of course, also have a profound effect on our business. And similarly, of course, risk that may damage us financially. I mention them in that order primarily because it's in that order that we worry about them. So how do we manage risk across such a diverse book? The primary foundation of this is around culture. Now, every time that Mick and Philip deliver and talk to investors each year, we put up metrics regarding our people and our culture. We measure our risk culture.
That's an example of how we think about it. It's not the only example of how we think about risk culture. But it is extremely important to us that everyone within our organization understands what we do, who we do it for, and acts in the same way, that we don't hide things, that we don't walk away from things, and that if we've got issues, that we flush them out and that we address them. The second part of that, and again, you would have heard many people reference it today, and again, Mick and Philip talked to it many times, is around governance. Having very clear committee and board structures, delegations of authority about how we make decisions and when we make decisions, is extremely important when you're talking about managing across such a wide number of trusts.
You have to have a consistent way of thinking and a consistent way of making decisions. That's why we talk about governance. That's why we talk about culture so much within the organization. There's a reason that we talk about it so much, and that's because it matters so much to us. Let me turn to the regulatory landscape. As Andrew mentioned, the last five years probably have seen an incredible body of regulatory change primarily impacting our superannuation and responsible entity businesses primarily, but not uniquely. The slide up here is not exhaustive, but what it aims to do is highlight some of the major changes. There is an enormous body of work that goes to meeting those changes.
It's not just in preparing to meet it, but it's on the ongoing impacts of how you need to change your operating model to continue to give effect to the intent of that regulation. It's extremely important to us that we do that and that we're able to, you know, stand in front of our investors, our beneficiaries, our members, equally our regulators and other important stakeholders, and say that we understand what's intended and that we give effect to our regulatory obligations. What's important, though, and Andrew touched on this a little, is to recognize that that regulation isn't just about what we must do. It's also about the intensity of regulation and supervisory oversight.
One of the challenges that, you know, our success has brought and the growth has brought has meant that, of course, supervisory intensity around us increases at the same time that the supervisory intensity across the industry has increased. Clearly, setting ourselves up for success in that regard is very important. When we talk about how do we set ourselves up for success, well, the team that stands behind me and Andrew and Ian is extremely important. You've seen some of them today. We look across our organization. We've got some 40+ people that have got responsibilities for risk and compliance activities in either the first-line business units or indeed in my team. We've seen that kind of grow very significantly, probably close to double, in the last five years.
We anticipate that will continue. We don't anticipate that regulators will be reducing that intensity anytime soon. In many ways, we welcome that. Regulators talk to us because we're a bigger part of the industries in which we operate, and therefore, they seek to maintain a conversation to understand what we see. We see a very broad and diverse set of issues across the industry. The second part is, I've mentioned the regulatory change and put up a slide there with some of the major ones. I think what's interesting in the regulatory change space is not that it's growing. That's incontrovertible. It's perhaps that it's growing in slightly different ways than it may have previously. I think previously, we've seen enormous change coming from what I'll call the core regulators, the likes of APRA and ASIC.
I think more recently, we're starting to see satellite regulation coming in on thematic grounds. So, you know, things like, for example, the climate disclosure regime, similarly modern slavery, those kind of regulatory obligations, built. Now, we're well-placed to understand and respond to those. Not all of our clients or prospective clients are. And that's why we see that there's a real opportunity for us in the space because we've got experience and because we've got insight into what some of those changes might mean. That was really everything I wanted to talk to, but hopefully, that's given you a flavor of why risk management is important to us, how we approach it, and then some of those insights on regulation. Happy?
Questions for Owen, please.
Sorry, just to what you're most worried about from a regulatory perspective over the next 12 or 18 months, I think there's a huge pipeline that I've heard you discuss at the moment that.
Look, I think there's probably two things that come. One is the kind of logistical challenge of meeting some of the regulatory obligations that are changing, CPS 230 in the super space, you know, disclosures regarding climate and so on. So there's a kind of logistical challenge there. Probably some of those ones that are more long-term would be, you know, government thinking around, you know, I don't know, the philanthropic space, for example. There's a treasury consultation on that that Jody mentioned. Broadly, we think that that's going to be very positive. But clearly, you know, how the regulation develops in that space, for example, could present a different challenge for the organization. At this stage, of course, we don't know where that would land.
We're involved, of course, in the consultation processes through those bigger changes that might impact us.
Other questions?
No.
Now, I'm disappointed that no one has asked Owen the question of where he got his socks from.
Can you show them that?
This,
I'm interested.
I didn't realize it was on Catwalk as well.
Well, there you go.
We have a CRO with personality, so perfectly placed for this business. Thank you, Owen.
Very good.
Thank you.
Thank you.
Over to Phing, our Chief Technology Officer. Thanks, Phing.
Thank you, Mick. Good morning, everyone. So my name is Phing Lee. I'm the Chief Technology Officer for Equity Trustees. Luckily for everyone here, I'm lucky last, I think, on the agenda. And my goal here is to not cause the head-dropPhing and the tables, and hold everyone from lunch after this. But it really is a pleasure for me to be talking to all of you about our technology journey for the last few years and also a little bit about how things are currently going, for the organization and a little snippets to what's probably to come in, in the technology space. We've been talking about AI, as we know, so we'll try to address a little bit of that and how we're thinking about that as well. All right.
In setting out on our technology journey and building out the technology strategy and plan, we put together a set of clear principles that we've largely stuck to when executing on a plan. Ultimately, I see the role of the technology function for the business is really to deliver business outcomes through technology solutions, and looking at areas where we can really add value. For that reason, we look to buy technology, don't build technology. Internally within Equity Trustees, we look for fit-for-purpose solutions that are out-of-the-box functionality that we can just apply, and, you know, that delivers the capability that the business really requires. In most cases, these technology solutions are going to be cloud-based. They're going to be software as a service, where our data will live securely in Australia, in Australian data centers.
From a technology standpoint, it's important that we get technologies that are easy to integrate, that are mobile-ready, digital-ready. That all, you know, sounds pretty common. But in, you know, trusteeship and trustee space, it's not quite that, that easy to find those sort of solutions. Why is this important to us? It's really important because we are a trustee company. We're not a tech company, so, you know, we really don't have business really building technology solutions out there. But it also makes it much easier for us to have technology that's easier to grow and easier to scale, right? These principles also mean that I can have a technology company that focuses on three main things. That is, we will own the client experience, client and user experience, I should say. Staff is equally as important here.
If the aim is there is to deliver a great experience, for all of you our users that really aligns to our brands and values. Secondly, as a specialist trustee company, we, we do have unique business processes that are different to all organizations out there. So using technology, we can really focus on workflow automation, creating efficiencies and scale for the business. Thirdly, our data assets are very important to us, obviously, and we want to ensure that we can protect them and manage them well. This then enables us to really unlock data for the use for the business so that they can get the insights that they want, again, you know, at the end of the day, is to grow and support the business here. So these are really the areas where our technology team really focuses on.
Here's a bit of a snapshot of the technology team at Equity Trustees. Currently, we have about 37.6 FTE. That counts about 39 people, and about 12 contractors at this point in time. As I mentioned, we do focus on the three areas where we can add value. So we can run with a relatively small team. The contract resources that we have today are really there to support the larger programs of work that we have, you know, for example, the AET integration. But over, you know, the journey of growth of the business, we've had to invest in capability and capacity in the team a little bit. Examples there, I think Georgie just touched on change management, so we've got a change manager within the team now.
We've had to uplift our project management capability to deliver some of these larger projects, and also in, you know, the space of cybersecurity and enterprise architecture because that's important as the IT assets of the business becomes more complex. All right. You would have seen some of this, I think, in the past during, various different presentations, but ultimately, Equity Trustees have invested in technology or invested more in technology over the last few years than it ever has. This investment has really been made to deliver benefits to all of our stakeholders, you know, the T4 that, Mick mentioned earlier, you know, our clients, our staff, our shareholders, and the community itself. What's not on here is we have completed a whole raft of different projects along the way.
Some of the examples there are, you know, the implementation of Salesforce that's been mentioned as well, as the corporate CRM system and marketing platform. We've implemented a platform called ZLIR that really helps CSTS improve their efficiency when, you know, performing due diligence operations. We've implemented CAMMS and Satori in the enterprise risk space, really changing away from legacy legacy systems that we had there. So that's just some examples of stuff that we've done. But what we've got up here, the four that we've chosen to sort of get into a little bit more detail today, really is there because I think it really demonstrates the breadth of the technology transformation that we're trying to achieve for the organization.
So I'll go briefly across the four then from left to right, and then sort of dive a little bit deeper into how we're tracking and the benefits that these projects will deliver to the business. You know, George, you kind of touched on it already in terms of Workday. We're implementing Workday as the finance and people platform. It is an enterprise capability that we're trying to deliver here. Moving on to the next one, the implementation of a new TWS platform. With that, it's a TrustQuay NavOne system with HUB24 custodianship. That really is designed to help the TWS business modernize itself and deliver better outcomes for all stakeholders there. We've heard a little bit about the Active Philanthropy Platform, iFi, already, so we'll go into that a little bit more.
And then finally, you know, cybersecurity, obviously, is pretty important and top of mind for, you know, a lot of organizations these days, and we're no different. And we've invested quite a bit in terms of uplifting our capability and making us just a little bit more cyber-resilient in a sense. I'll go through that as well. All right. So we'll start with Workday and where we're up to. So we have implemented Workday. Workday is operational, but that is for the finance team. As Georgie you mentioned, we are in the process of implementing the people functionality that we need in Workday, the HRIS capabilities of Workday. That is, that first phase of it is an additional functionality for our finance team. It's all on track and will be delivered by the end of this calendar year.
But really, this replaces two separate systems that we've had, that we've had in the business for quite a while. That's great from the technology perspective because I don't have to support all the systems that are on our infrastructure, for example. Ultimately, it's really about creating that enterprise capability for our finance and people teams, right? What that means is it allows those teams to support the growth of the business as we can, as you've seen. Workday is a much more intuitive system. It's much easier to use. It's easier to train staff on, and all that sort of stuff. It allows the finance and people teams to really improve their service delivery to the enterprise. It also unlocks a whole lot of data insights that we've never been really able to extract from our older systems in the past.
I think, you know, again, Mick and Georgie and various others have mentioned that people are a very, very important asset for the business. Having a system like Workday where it really unlocks the capability for people leaders to manage their workforce is a capability, I think, that's been, you know, wanted by the business for a little while, and we will be able to deliver that through Workday. Okay. Moving on to TrustKey NavOne. Again, the implementation of NavOne and HUB24's custody functionality is already alive and functioning. We have taken a product-by-product approach to the project, and to the migration of clients and functionality. Currently, we're sitting at just over 50% of the TWS clients, and that's just about EQT and AET clients. They've been migrated onto the NavOne platform.
The majority of the technology build, the actual building of the technology platform, the integration work has been completed, but there's definitely project activity that still needs to complete over the next little while. That's configuration of the platform and solution for other product types and client types, and also more data migration. I think Philip talked about it over the next, and I think Ian as well. We've got a couple of windows of data migration coming up over the next few months that will bring more clients on board. Now, NavOne is a very important piece of the integration of AET with Equity Trustees, as it really becomes the one platform for the TWS business going forward. But also importantly, it allows that business to operate with one process, one way of working, in the future.
So, you know, we are not running two separate systems, two operational teams, and all that sort of stuff. Aside from the AET integration and, you know, things like operational efficiencies, we believe that by replacing some of the legacy legacy technology that we have, unlocking digital capabilities through NavOne, it really allows TWS to modernize their product suite, and also enables, you know, future business development opportunities, by, you know, having capabilities similar to iFi within a modern technology landscape. NavOne is definitely more user-friendly. The staff experience is greater. You know, the people that are currently operating on, on the platform today, the feedback's been very positive, and we believe that it'll create a lot of efficiency efficiency for them going forward. I have included a little bit of a before and after example here.
So on the left-hand side of the screen, we've got the two legacy platforms that we're currently on with in the EQT environment and the AET or Insignia environment there. You can see they're a little bit more traditional screens, lots of menus to click through to get to the information and so on. And on the right-hand side, we've got NavOne, which is, you know, much more CRM and modern-looking. So it's easier for people to access the information and really get, you know, focusing really on the user experience there. Moving on to iFi or the Active Philanthropy Platform and Portal. I probably won't go into too much details because I think, you know, the benefits for the business have been covered.
But this is why, why this was included really in my presentation was it's a really good example of, I suppose, the things that we can do in technology to really influence or, or make the client experience a lot better. You know, there's, there's about 400 active families on the portal at the moment. There are definitely plans to grow it. And I think we've had discussions about how that could potentially change the dynamics of the market here in Australia. So it's a really exciting thing that we can that we can deliver. And obviously, we'll try to look to take, these sort of benefits in terms of what we're doing for the rest of the products for TWS in particular. And like NavOne, I've also included a couple of screenshots on what that kind of looks like.
So again, it gives hopefully, this will give everyone a bit of a flavor or a snapshot on, on what the client experience will be. And, you know, I suppose two years ago, this was all done manually and not really possible for the clients to self-serve. All right. The fourth that I have, arguably for me, being an IT guy, the most important, is the work that we've been doing in our cybersecurity program. We have really invested over a number of years in cybersecurity now. This investment's been made across all aspects of cyber-resilient resiliency. Some of it is in technology. So we've put in new solutions, technical solutions to protect our IT environment and our information assets. We've invested in the ongoing education and training for our staff on cybersecurity, and the threats that they face these days.
We've invested and partnered with organizations to help us monitor threats, and, you know, issues that may come in, and also enhancing our capability in responding to cyber incidents, and managing them that through, should that happen to us. We see cybersecurity and cyber-resilience as a bit of a journey, right? It's not a thing that we can fix through spending, you know, an amount of money. It is something that we have to do across all the organization. We have to mature all aspects of our cybersecurity framework because it is important that we protect our information assets, and the data that our clients and partners trust us with. So this work will continue. I don't think it'll truly stop. Pleasingly, all of the projects and, you know, priorities for us in the technology space are largely on track.
The program of work is going pretty well and going to plan. There is still quite a lot of work ahead of us. You know, we do have, you know, great support from the business. We have a technology team that's very stable at the moment and, you know, have been on this journey with us since the start. We're, yeah, pretty well positioned, I suppose, to deliver and achieve all our planned deliverables here, in the foreseeable future. Moving to talking about where to next. Once all of our priority technology investments are completed, and it's a little bit scary to say this, but really, all of the major systems that we use at Equity Trustees would have been replaced, as compared to, let's call it, 3, 4 years ago. This would have been replaced with systems that are modern, right?
So they're gonna last us for a little while. They align with the principles that I talked about earlier. So we've got opportunities to, you know, create digital solutions. We can integrate them well. We can use data really well with all these systems. And importantly, they kind of meet the business's needs of today. So it's a really great foundation for the business. What that means for us is, thankfully, we probably do not need to make these sort of large-scale investments of the like over the last two, three years in the medium term because these systems are pretty, pretty new. You know, we really will have all the platforms that we need to help the business execute the strategies that they have today, the stuff that you've heard from Ian and Tame and Andrew and Tame.
We've got all the capability there from a technology perspective to really deliver on that. In the short term, you know, there's definitely a lot more opportunities for us to leverage all these new platforms. When they go in, they, you know, they kind of meet the business needs of today. But as that evolves and changes, as we look for more opportunities to scale, this plat there's a lot more opportunities for us to automate processes, achieve more structured processing, leverage the data that we hold on all these systems, in a better way. And then on the right-hand side there, you know, again, similar to the iFi experience, we believe that there will be opportunities for us to digitize further products and services, a couple of areas that we're exploring, for example, in estate planning and estate management.
And then I think Ian's talked about artificial intelligence a little bit, and we've had a couple of conversations. And I'm sure people are pretty interested in what's happening there out in the environment. You know, we're certainly no different. We're experimenting a little bit at the moment with things like a Will Bank. But for us, we think that the stuff there being digital or emerging technologies, there'll be smaller-scale investments where it's more iterative. We can try things, get a lot of value out of existing investment that we've made. So that's basically all I wanted to cover today. Thank you, everyone, for your time.
Thank you, Phing. Any questions for Phing?
Thank you. Just let me so you've got about AUD 3 million worth of IT CapEx each year. But how much of that is kind of just the projects that you've mentioned and what the major bits of work that you're working through, and then what can we kind of expect in terms of spend on a more of a recurring basis in the business?
Yeah. So all almost all of that spend is on those projects. Yeah, they're, they are definitely the priorities. I think this year, we're not doing any regulatory projects so far, which is a nice change. So it's definitely all invested in those four main priorities there. In terms of the future, again, a lot of it depends on our conversation with the business and what they wanna achieve. But it's unlikely that we'll be spending that amount of money, right, because core system replacements are expensive. And you tend not to do them every year, or definitely do not want to do them every year. And once you do them, they'll probably last us 5, 6, 7 years easily.
One more question for both of you. On the old systems that you see threats to growth, we should do issue operation, and how does that change?
Yeah. So, in the old world, you know, systems tend to grow almost organically, and it tends to become, you know, more complex and clunky. So when processes change, it's actually quite hard to automate them and achieve structured processing. By buying out-of-the-box functionality, the systems that are easy to integrate, you know, with using NavOne as an example, modern platform, we've got HUB24 that are doing custodial services for us. It's much easier for us to connect all that. In that project, we do have a workflow of structured processing where we do process large amount of invoices for health and personal injury clients. And that's about 50,000 pro invoices a year that pretty much, you know, goes through without much or people do have to approve it if it meets certain criteria, but it pretty much goes through straight through. So definitely a lot of opportunity there.
Other questions? Thank you, Phing. Thank you. All right. So I'll quickly wrap up and then take any other last questions that people had. So you've heard from almost all the leadership team, but just remind you, we've got Darren Thompson here, who heads up asset management, as well as Alicia Kokocinski, who heads up our marketing function. So if there's any questions for them, happy to take them as well as we get to the end. So, I think that's hopefully given you a great broader and a deeper insight into the business. You've heard from the experts. You know, every day, I guess, everyone comes into this company wanting to serve their clients as well as we possibly can. It's a very, as we said, privileged position to be a trustee.
But, you know, I look at it and go, "We are incredibly well-resourced with these people. They are leaders in the Australian market in trusteeship." So it positions us incredibly well. So let me just go on and talk about a couple of things. The industry we're in is incredibly favorable to the business. So both the corporate and the superannuation trustee businesses are really underpinned by the growth in superannuation. You know that is well, you know, well in excess of GDP growth. The increasing regulatory environment means that our services are more and more valuable all the time. So it's hard for us, but it's harder for everyone else. And so it's a great position underpinning those businesses. Ian talked about what underpins the demand for our services in trustee wealth services. So I won't go and repeat that list.
But you can see there that the future over the next, you know, 20+ years is really positive for these services that we offer. We're a leader in all parts of the Australian market, you know, in many cases, number one. In other cases, number two. But it's a strong position to build from. There's, you know, great opportunities organically. There are some bolt-on acquisition opportunities, and we will take those when they come up. Let me give you just a quick snapshot on the outlook. Philip updated you on the quarterly funds under management, administration, and supervision. So I won't go through that. But there's a positive outlook for earnings for FY25 and FY26. So we expect to realize the AET expense and revenue synergies and the capital synergy as well.
The revenue synergies come by repricing and investment allocation, and Ian and Philip talked about that. Expense synergies from the platform business outsourcing, exiting, outsourcing a small APRA fund administration, and implementing NavOne and putting TWS together as one operational business. We're very close to the exit of the UK and Irish business. It's. We will be substantially complete by June 2024. So just reminding you, there's an AUD 4 million+ operating loss that will be reduced once we're out of that business. Phing just talked about the technology investment and where he saw it going into FY26. So that will come down a little as we go into FY26. These have been major developments we're in the middle of at the moment. So we've got a leading position in the market and very good organic growth momentum.
So in conclusion, we will continue with our strategy of specializing on trusteeship. We see enormous runway in that strategy. It differentiates us from all of our competitors. You can see in some of the data we presented today, which you don't get to see that often, trusteeship is a lot has long-term revenues, right, and very solid margins. The expert expertise and capability that we have is first-class. So we've got leading-edge technology to go with our people now, which we haven't always had. And the AET acquisition has really given us this significant national footprint, which is fantastic to have. And we have this unique set of licenses. It's a strong springboard for growth into the future. The industry dynamics are positive for us. We've got leading positions. It's a very diversified business mix with low client concentration. There's strong organic growth momentum.
You saw that in what Philip showed you in the funds growth. We do continue to have options for bolt-on acquisitions. So it's a positive outlook for the year ahead. So I wanna thank everyone for coming along today. Happy to take now any questions about any issues we have covered, haven't covered, and the team are happy to take any questions. So I'll stop there.
Mick. Just a brief follow-on. Margins have kind of gone through a cycle over time. Just refreshing your focus on AET and investment. Do you think that there's a competitive, regulatory, or client pressure on where your equity and margins can get to a point where just investment can invest in the growth, growth model, just kind of like strengths to be?
Sure. Sure. Well, I'll start and let Philip correct me. So, yeah, look, we're in a period of high investment at the moment. So margins have come down, right? But you can see the runway over the next couple of years as to where they're likely to move to. You know, are they, you know, do they have an upper limit? Is there constraints? Well, you know, I guess we wouldn't like providing products where making excessive margins, right? That's not the type of business that we are. But there is room for them to continue to improve. I think the technology and processing will help us do that. We've also got, though, increased regulatory cost coming on all the time. So we'd frankly be, once we regain the margins we had a couple of years ago, we'd be pretty comfortable at those margins continuing.
So it's hard to say whether they'd go up from there or not. They could in certain, certain areas. Certainly, you know, if you look at superannuation, the accounts that we bring on at the moment, virtually every account approved improves the margin, right? And, so and a lot will come down also to market movement that, we haven't had much assistance from that in the last eight years, really. It's been pretty patchy. It's starting to come through now. And, and that is our main pricing mechanism for inflation. So, you know, it's good that we're finally getting a little bit back on that front. Philip, do you wanna add to that?
Oh, it's pretty good. Thanks, Mick. And look, I think the underlying margins should equal the statutory margins, you know, over the next 6, 12 months as we exit the U.K. and Ireland. Those one-off tech transformation costs disappear, and the integration gets complete. And that should get us back to more normal levels, which will be pretty healthy. And I think we'd be comfortable around those levels.
sorry. Yeah.
Yeah.
Just,
That's fine.
Probably drilling into one of the bits of the weeds here, but just on the iFi, it sounds like a really interesting opportunity. I'm just interested in how you're sort of thinking about monetizing that. Is it because you can manage the assets and take a sort of asset management fee, or is it an administration fee per donation, or just, I'd be intrigued to know where you see this going?
Sure. Yeah. Well, there's a fee for setting up the vehicle and governing it, right? So, you know, and you can make some margin on that, right, particularly if we've got straight-through processing and people being able to process online. But if you're coming into, if you're like the public ancillary fund, you're coming into the foundation with our investments effectively in that, right? So it's got normal investment management margin. Ian or Jody, do you wanna add any comment to that, or?
Yeah. Can you hear me okay? Yeah.
Yeah.
Give it a little bit of scale. It's about a 1% fee, and it is a fund-based fee for individuals coming in that's into our product. And that's, as Mick said, where we do both the investment and the trusteeship. With the JB Were one, the margin will be a little bit lower because JB Were are managing the investments, but we're still providing the trusteeship.
Okay.
But it's scalable given the fund-based fees.
Yeah. Yeah. And, and as Ian's saying, we're set up to do either, basically. Yeah. Yep. Yep.
Have you checked the sales capability?
Good question. If you had have asked me that eight years ago, I would have said, zero, right? Sort of business walked in the door, but we didn't really go and get it, right? Okay? So both Ian and Andrew put up what their business development capability is. I think it's excellent now, right? You know, it. I really do. You know, as Johnny said, he's really the first business development professional we put into the business. I mean, we had a gentleman, Harvey Kalman, running that business who was a bit of a business development machine, on his own. So and Johnny's been building up that capability in the, the corporate and superannuation trustee services side. And acquiring AET, and having Ravi join, the trustee wealth services team, well, you saw him present, and, you know, he's got a great team behind him.
You know, generally, when we're making these sales, there's the business development team, but then the subject matter experts are brought in quite quickly in many of these processes. So, they're all happy to get involved in that process. So, I think we're in great shape, yeah, basically, on business development. Yeah. Other questions? We're going remarkably to time. I can't believe this. Well, firstly, you have done incredibly well to sit through three and a bit hours of trusteeship, right? I hope it was of value. If you could just thank the team because they put a lot of time and effort into this, and they really, you know, couldn't get it done without the support of this great team. So if you can just thank them, thank you. Philip is gonna be with us through to June.
So no doubt some of you'll be talking to him over that period of time. But also, again, just wanna recognize the enormous contribution over eight years. I'm told on so many occasions that people think what Philip does in terms of investor relations is absolutely first-class. And so he's done a great job. Thank you. And finally, thank you for attending. Thank you for the support of the company. So, you know, we have very, people complain about the liquidity of the stock. That's 'cause you don't sell it, right? So, I'm not asking you to sell it, but we appreciate that long-term support. This is a long-term company, you know, looking after clients over long periods of time. And it is great that we have shareholders that are behind us like that sticking with the company. So thank you. Thank you.