When you invest with La Trobe Financial, you are trusting us with money you have worked hard to earn. We take that responsibility seriously.
It’s a simple premise.
Since 1989, we have looked after the savings of everyday Australians – through moments such as the Global Financial Crisis and COVID-19, movements in Australia’s property market, and many other market conditions. We have never frozen, gated or restricted access to investors’ money in the La Trobe Australian Credit Fund’s pooled accounts^.
That record is the result of careful choices made every single day, over more than three decades. And it’s the result of structural decisions which endure.
Some managers have recently frozen funds after portfolios became too concentrated, assets proved difficult to realise, or property market conditions softened. For us, these examples reinforce a long-held view: investment settings need to be built for interruptions before they arrive.
The point is simple: strong outcomes rarely come from one decision. They come from a set of disciplines that work together, day after day, so investors are supported when markets change.
Fundamentals
Building a portfolio designed to perform through all market conditions means getting the structures right. La Trobe Financial remains well diversified with high-quality assets.
Our 12 Month Investment Account is deliberately diversified by sector, location and borrower. The latest quarter-end figures show how this discipline works in practice.
The average loan size in the portfolio is a little over $1 million, and the average loan-to-value ratio is 67%. Put simply, the average security value is around $1.5 million. Across more than 10,500 loans, that means the portfolio is granular, well secured and spread across sectors and locations. It is a deliberately strong starting point, supported by borrower credit scores approaching the levels of Australia’s major banks.
Liquidity
Over many years, we have built several sources of funding and liquidity. These include our Credit Fund, funding facilities with a panel of major Australian and global banks, and our long-running capital markets program. Having more than one source gives us more options across the cycle. If one source tightens, we can draw on another.
This discipline is a key reason we have been able to pay all maturity redemptions across the La Trobe Australian Credit Fund’s pooled accounts^, in both strong and difficult markets. It is part of our daily routine, overseen by our Chief Liquidity Officer and supported by our broader commitment to diversification.
The Show Must Go On!
For investors, the discipline continues every day. We keep testing our settings, monitoring our liquidity and looking for ways to strengthen the way we manage your money.
We hold strong cash buffers. Our liquidity buffers sit well above the minimums, and we monitor them every day.
We watch and forecast daily. A specialist team tracks money coming in and going out, and plans ahead, so we always know exactly where we stand.
We choose our loans carefully. Every loan is secured by Australian property, spread across thousands of borrowers, sectors and locations. If the quality is not there, we simply do not write the business.
Our approach is deliberately broad-based. We diversify our funding sources, spread credit exposure across thousands of loans, and focus on asset quality rather than concentration. These choices are designed to help the portfolio keep operating through interruptions.
This is where we are different. Many funds rely on a single source of money. They are not as diversified. They take greater credit risk. They have a small number of large loans… not the other way around. And each of these factors means that even the slightest interruption can bring them unstuck. Our approach is deliberately broad-based. We diversify funding sources, spread credit exposure across thousands of loans and focus on asset quality rather than concentration.
Investor Communications: another point of difference
We also make it easy to speak with us. If you have any questions or would like to learn more, we would genuinely welcome the call. You can contact our friendly Investor Centre on 1800 818 818, or speak with your financial adviser.
Read more
How La Trobe Financial carefully manages liquidity to protect investors
La Trobe Financial Asset Management Limited ACN 007 332 363 Australian Financial Services Licence No. 222213 Australian Credit Licence No. 222213 is the responsible entity of the La Trobe Australian Credit Fund ARSN 088 178 321, the La Trobe US Private Credit Fund ARSN 677 174 382 and the La Trobe Private Credit Fund ARSN 686 964 312 (ASX:LF1). It is important that you consider the relevant Product Disclosure Statement (PDS) before deciding whether to invest or continue to invest in the fund. The PDSs and Target Market Determinations are available on our website.
^ Past performance is not a reliable indicator of future performance.
Any financial product advice is general advice only and has been prepared without taking into account your objectives, financial situation or needs. Before investing, you should consider whether the product is appropriate for you and read the relevant Product Disclosure Statement and Target Market Determination available from La Trobe Financial.
When considering whether to invest or continue investing in the Credit Fund, you should be aware that (1) an investment in the Credit Fund is not a term deposit, and your investment is not covered by the Australian Government’s deposit guarantee scheme. Investing in the Credit Fund has a higher level of risk compared to investing in a term deposit issued by a bank and (2) there are other risks associated with an investment in the Credit Fund. The key risks of investing in the Credit Fund are explained in the risk section of the relevant PDS, available on our website
