Each month, La Trobe Financial produces a series of short videos.  Watch now to stay up to date with our business, our portfolios and what we are seeing in the economy. This month, we provide an update on our portfolio performance, as well as share our current thinking on the property market and economy.

Business & Portfolio Update: Chris Paton, Chief Investment Officer

We remain entirely focused on the delivery of our fundamental value proposition: defending your capital against volatility and providing income to meet your income or lifestyle requirements.

  • The diversification of our portfolios comprises 12,000 individual loans with an average loan amount of $736,150 and an average loan to Valuation Ratio of just 64.4%.
  • Assets remain well diversified geographically, ensuring no one market will drive the performance of the wider portfolios.
  • Portfolio health remains excellent. Total loan arrears of 3.3% across the entire credit fund remains entrenched within our long-run range.

Economic Update: Michael Watson, Head of Distribution

Inflation is the name of the game as the cash rate rises. The bear case for any further increase to the Official Cash Rate is harder to justify as each day passes.

  • The pace of the return of inflation towards its target range remains the central concern of the Reserve Bank of Australia (RBA).
  • Arrears across the wider banking industry remain controlled, and well below previous peaks.
  • With no recession forecast, and continued low unemployment, Australia is well placed to deal with future economic challenges.

Property Market Update: Tanya Hoshek, National Distribution Manager

A range of structural and economic factors support the market avoiding a deep cyclical trough.

  • Total population in Australia is still below the pre-COVID trend, but making up for lost ground.
  • Anticipated jump in listings still likely to be met by surplus demand.
  • Longer-run undersupply of properties will continue to drive the resilience of Australia’s property market.

La Trobe Financial Asset Management Limited ACN 007 332 363 Australian Financial Services Licence 222213 Australian Credit Licence 222213 is the responsible entity of the La Trobe Australian Credit Fund ARSN 088 178 321. It is important for you to consider the Product Disclosure Statement for the Credit Fund in deciding whether to invest, or to continue to invest, in the Credit Fund. You can read the PDS and the Target Market Determinations on our website or ask for a copy by calling us on 13 80 10.

La Trobe Financial Services Pty Limited ACN 006 479 527 Australian Credit Licence 392385.

To the extent that any statement in this article constitutes financial product advice, that advice is general advice only and has been prepared without considering your objectives, financial situation or needs. You should, before deciding to acquire or to continue to hold an interest in the La Trobe Australian Credit Fund, consider the appropriateness of the advice having regard to your objectives, financial situation or needs and obtain and consider the Product Disclosure Statement for the Fund.

© 2023 La Trobe Financial Services Pty Limited. All rights reserved. No portion of this may be reproduced, copied, or in any way reused without written permission from La Trobe Financial.

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