Most of Australia’s leading economists were predicting that the OCR would be held at 3.60% at the RBA’s May 2023 meeting. Indeed, for a collection of those economists, they were calling 3.60% as the peak for this rate hiking cycle, with the next move to be a softening of rates in H2 2023 or early 2024. And with inflation prints for March coming inside forecasts, there seemed to be little by way of data supporting an outcome different to the April pause.

Yet the RBA did increase the OCR by 25bps on 2 May 2023, a move which came as a surprise to many.

The revised OCR of 3.85% represents Australia’s fastest rate-rising cycle ever. And while it certainly represents a materially higher number than the record-low 10bps from just over 12 months ago, 3.85% actually represents the average rate between October 1995 and today. So, while the uplift has been swift, this is very familiar territory for the Australian economy.

At La Trobe Financial, we remain dedicated in our commitment to our core investment fundamentals, fundamentals which have across 33 years been delivered impeccably to investors in our portfolio investments. Through those investment fundamentals we are able to harness the best attributes of our chosen asset class to deliver low-volatility variable income to investors.

Driven by the ongoing performance and health of our portfolios, we are again pleased to announce a 25bps increase to each of our portfolio accounts effective 1 June 2023. Headlined by our flagship 12 Month Term Account, which will be delivering a variable rate of 6.00%* p.a.

We are pleased to deliver this rate increase for our 91,000 investors. Meeting the needs of our investors with low-volatility, consistent monthly variable income remains our central objective, and one we are pleased to have delivered across the 33 year history of our portfolio accounts. We thank you for your ongoing support.

*The rates of return on your investment will be effective from 1 June 2023. The rates of return are reviewed and determined monthly and may increase or decrease each month. The applicable distribution for any given month is paid at the start of the following month. The rates of return are not guaranteed and are determined by the future revenue of the Credit Fund and may be lower than expected.

An investment in the Credit Fund is not a bank deposit, and investors risk losing some or all of their principal investment. Past performance is not a reliable indicator of future performance. Withdrawal rights are subject to liquidity and may be delayed or suspended.

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.

#We will make every endeavour to release your funds 2 business days for the Classic Notice Account, 90 days for the 90 Day Notice Account and 180 days for the 6 Month Notice Account, after receiving your redemption request. We however have 12 months under the Fund’s Constitution to honour that request. In determining whether to honour your redemption request within 2 business days for the Classic Notice Account, 90 days for the 90 Day Notice Account or 180 days for the 6 Month Notice Account we have to have regard to the Fund’s cash position and the best interests of all investors. There is a risk that a redemption request will not be honoured within 2 business days, 90 days or 180 days. However, there has never been a case in the history of the Fund when we have not honoured a redemption request on time due to a lack of liquidity.

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

To the extent that any statement in this email 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.

When considering whether to acquire or to continue to hold an interest in the Fund, you should remember that (1) an investment in the Fund is not a bank deposit or a term deposit, and is not covered by the Australian Government’s deposit guarantee scheme. Investing in the 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 Fund. The key risks of investing in the Fund are explained in section 9 of the PDS.

© 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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