Transparency: What It Means and Why It Matters

Transparency: What It Means and Why It Matters

In asset management, there’s really only one product on the shelf: investment performance. And the old saying, “what’s on the label should match what’s in the tin,” couldn’t be more relevant. It speaks to the importance of transparency, honesty, and consistency – qualities every investor should expect from their manager.

Performance shouldn’t be a mystery. There should be no hidden risks or magic tricks behind how returns are delivered. Investors deserve to understand exactly what they’re investing in and how it works.

What Providers Should Disclose

Transparency isn’t optional – it’s foundational – particularly for asset classes like private credit. Investment managers should clearly disclose:

• Diversification metrics: Number of loans, loan sizes, sectors (e.g. residential, commercial), geographic spread, and interest rate types and levels.
• Asset quality & composition: A robust framework applying to the assessment of credit assets, and clear disclosure on how investor capital will be deployed (i.e. is there potential for mandate creep).
• Valuation policy: Independent valuations at approval and renewal, conducted by qualified professionals unaffiliated with the borrower or provider.

At La Trobe Financial, we take this seriously. Our monthly portfolio data for the La Trobe Australian Credit and US Private Credit Funds are published in full detail on our website – openly, promptly, and accessible to all.

Quality Management Matters

Pedigree and discipline aren’t luxuries – they’re necessities.

• We’ve been managing private credit assets since 1952, with over $21 billion in assets under management, including $14 billion in the La Trobe Australian Credit Fund.
• Our products are true to label. Consider the Classic Notice Account (launched in 1989) or the 12 Month Term Account (launched in 2002).  Both have consistently delivered enhanced income and returned 100% of investor capital.
• We’ve been tested through major market events – the GFC, COVID-19, SVB, and more – and our portfolios have not just shown resilience, they have thrived.

We remain committed to building trust through transparency, discipline, and long-term value – because our investors deserve nothing less.

Transparency in Action

We provide complete transparency across all our products. Investors can visit our website anytime to:

• Review our portfolios
• See how each are tracking
• View the number of loans and the maximum exposure of any single asset
• Drill down into US Mid-Market companies that we have provided funding to through our US Private Credit strategy

The assets in a portfolio will always drive its performance.  Ensuring that what’s on the label is what’s in the tin is of paramount importance. Managers who stray from this alignment may enjoy short term results, but overall performance, and ultimately their investor’s capital, is at risk the moment things go wrong.

Alongside performance, it’s this level of openness and communication that we believe helps investors feel confident and informed. It’s what makes La Trobe Financial a trusted long-term partner in delivering enhanced income you can depend on.