Income is Back in Focus

Recent policy discussions and market volatility have prompted many investors to reassess where their returns will come from – and how reliable those returns may be. 

Proposed changes to capital gains tax and negative gearing are shifting the balance between growth and income. For many Australians – particularly those approaching retirement – the appeal of consistent, dependable income is increasing relative to relying on capital growth alone. 

This makes it important to consider income opportunities across a range of investment styles. Listed Investment Trusts (LITs), such as the La Trobe Private Credit Fund (ASX: LF1), are one option worth closer attention. 

A shift back to income investing 

For much of the past decade, growth assets – particularly equities and direct property – have led returns. But the backdrop is changing: 

• Policy settings are reducing the after-tax appeal of capital gains 

• Direct property faces potential pressure on both growth and rental income 

• Market volatility and geopolitical risks are increasing uncertainty 

As a result, investors are placing greater value on reliable income streams – particularly those less exposed to equity market swings.  

Where LF1 fits in today’s market 

The La Trobe Private Credit Fund (ASX: LF1) is aims to provide: 

• Monthly income 

• Low volatility 

• Daily liquidity via the ASX** 

As at April 2026, LF1 delivered an annualised distribution yield above its target of RBA Cash Rate + 3.25% p.a. (7.35% p.a. for April).* 

This consistent income profile remains highly relevant for investors seeking regular cash flow in a more uncertain environment.*  

Portfolio strength through diversification 

LF1 provides exposure to a diversified private credit portfolio across two key allocations: 

• 59% – La Trobe US Private Credit Fund (Class A Units) 

• 41% – La Trobe Australian Credit Fund – 12 Month Investment Account 

12 Month Investment Account (12MIA) 
The domestic portfolio is conservatively positioned, supported by: 

• 10,699 individual mortgages 

• Average loan size of approximately $1.03 million 

• Weighted average loan-to-value ratio (LVR) of 67.2% 

This approach helps reduce concentration risk while maintaining strong asset quality. 

US Private Credit (USPC) 
The global allocation enhances diversification, with: 

• 141 loans across the portfolio 

• More than 99% exposure to first-lien loans 

• Weighted LVR of 39.4% 

• Conservative leverage of 1.13x 

This provides diversified, hedged exposure to the world’s largest private credit market – the US middle market. 

Why the LIT structure matters 

One of LF1’s key advantages is its Listed Investment Trust structure, which offers practical benefits for investors: 

Liquidity and flexibility 
Units can be bought and sold on the ASX during market hours, without long redemption periods.^ 

Diversification 
A single investment provides access to a professionally managed portfolio of private credit assets across regions and sectors. 

Transparency 
Regular portfolio updates and NTA reporting provide visibility into performance and positioning. 

A practical role for retirement investors 

For investors nearing or in retirement, the challenge is often not just growing wealth – but converting it into reliable income. 

As part of a diversified portfolio, LF1 can help by offering: 

• A focus on regular monthly cash flow  

• Access to specialised credit markets that are typically difficult to invest in directly 

• A structure that reduces the need to sell capital assets to generate income 

The bottom line 

The investment landscape is evolving. For investors, this means looking across asset classes and strategies to build resilient portfolios that can perform through different conditions. 

In this context, LF1 aims to offer a combination of: 

• Consistent income generation 

• Diversified private credit exposure 

• ASX-listed liquidity^ and transparency 

For those seeking more dependable income – particularly approaching retirement – LF1 can play a valuable role within a broader portfolio strategy.