Is Too Much of Your Wealth Tied Up in One Asset?

Diversification matters for us. But it should matter for you too.  So what happens when too much of your wealth is tied up in one place? Here are some things to consider.

When we talk about property in this country, we usually mean housing: the family home, or a rental across town. Housing is one part of a much larger picture, and we think the rest of that picture is worth knowing about, because it is where a great deal of long-term investment income is generated.

Consider diversification.

Property, as an investment, does not stop at the family home or even at Australian housing. Two of the largest asset classes in the world sit alongside it: commercial real estate and infrastructure.  Both have long been owned by large institutions and pension funds, quietly generating income year after year. Both have been largely out of reach for individual investors like you. And both are central to the next stage of our investment strategy.

Commercial real estate: the buildings our economy runs on

Commercial real estate is the offices, warehouses, shopping centres and specialised buildings that businesses use every day. In Australia alone it is a market of around $1.35 trillion. For generations it has played a central role in wealth creation, offering the combination of regular income, the potential for capital growth over time, and income that can help keep pace with inflation.

For most individual investors, though, direct access has been difficult. High minimum investments, complex structures and the hands-on work of managing buildings have kept it the domain of the very largest funds. Our Australian real estate strategy, currently in development*, is designed to change that by investing across the full real estate value chain, direct property, real estate credit and listed property securities, so you can access the asset class through a single, professionally managed portfolio.

Global infrastructure: the assets our economy runs on

Infrastructure is the physical backbone of modern life: energy, transport, utilities, digital networks and the social assets that communities rely on every day. Like commercial property, it has traditionally been the preserve of large institutions, valued for delivering regular, inflation-responsive income together with long-term growth.

Our global infrastructure strategy, also in development*, is being built to give you access to this asset class for the first time, investing across the infrastructure value chain, from direct assets to infrastructure debt and listed securities, in partnership with experienced global specialists.

The same fundamentals, a broader horizon

Here is the part we think matters most to you. Each of these strategies is being built on the same foundations that have guided us for more than seven decades: quality assets, broad diversification, disciplined selection and a careful eye on risk. What they add is breadth, different sources of income, exposure to different sectors and geographies, and the potential for growth to sit alongside income, while keeping the disciplines you know us for firmly at the centre.

They are also part of a deliberate journey. We created La Trobe Global Asset Management to bring you opportunities that are unique or traditionally hard to access, beginning with US private credit and the ASX-listed La Trobe Private Credit Fund (LF1). Australian commercial real estate and global infrastructure are the next chapters, expected to come to market in the 2027 financial year.

Our takeaway is a simple one. Diversification can reach well beyond Australian shores, and beyond any single type of property. As our investment platform grows, so too do the ways you can put real assets to work, broadening your sources of income and introducing the potential for growth, while keeping the fundamentals firmly at the centre. If you would like to hear when these strategies come to market, register your interest with our Investor Centre on 1800 818 818.