La Trobe Financial has emerged as one of Australia’s leading alternative asset managers by specialising in asset management and credit services, with a commitment to make a positive impact on the country’s financial community.
With seven decades of proven credit management, La Trobe Financial has funded over AUD 34 billion of investment for over 168,000 customers. Its investors include large global institutions, Australia’s major banks, family offices, fund managers and investors in its award-winning Credit Fund.
The venture was named ‘Best Wealth Management Company – Australia’ and ‘Best Non-Bank Lender – Australia’ in the recently concluded International Finance Awards.
Taking pride in its product line-up
La Trobe Financial has been building up further on its reputation for having strong portfolio performance, diverse product offerings and exceptional achievements in the finance sector.
Talking about La Trobe Financial’s ‘Asset Management’ segment, it is currently operating Australia’s largest retail credit fund with almost AUD 10 billion in assets under management, while the ‘Real Estate Credit Finance’ segment makes up the rest of the Financial venture’s AUD 18 billion in AUM.
La Trobe Financial, which has been operating since 1952, currently offers the most diversified funding program of all non-bank lenders operating in Australia. Through its retail credit fund, La Trobe Financial offers seven separate product offerings to retail and institutional investors, which are further backed by pools/exposures to loans secured by registered first-ranking mortgages over real property in Australia.
“Renowned for their laser-like focus on a disciplined and diversified selection of granular exposures across the sector, loan size, borrower type and security location, the company continues to harness the best of its chosen asset classes to deliver low-volatility income products, within its portfolio accounts, demonstrating their performance across all economic cycles,” La Trobe Financial told the International Finance.
Dealing the challenges ahead
La Trobe Financial’s Chief Investment Officer Mr Chris Paton told the International Finance, “My team is acutely aware that we are managing other people’s money and this drives our unwavering focus to manage portfolios that deliver consistent performance across cycles. This award is a testament to our core investment fundamentals, and our resilience and consistency in delivering for investors during volatile times.”
The Reserve Bank of Australia has been increasing interest rates since May 2022 to counter rising inflation. In December 2022, the rate soared to a cyclical peak of 8.4%. Although the rate hike cycle was paused in July 2023, reports suggest that the RBA is considering resuming the process.
Amidst the above volatility, La Trobe Financial, driven by the ongoing performance of its portfolios, is planning to increase its investment rates.
“We are proud of the impeccable performance of our portfolio accounts that we have been able to deliver low-volatility, regular monthly income for our investors across all market cycles. That no investor has ever lost a cent of invested capital in our portfolio accounts is something we are immensely proud of, a performance that we strive above all things to maintain. It speaks to our commitment to our investment fundamentals, and our careful and disciplined approach to the construction of our investment portfolio accounts,” Mr Chris Paton added.
However, La Trobe Financial’s lending segment has benefitted from rising interest rates, speaking on which, La Trobe Financial’s Chief Lending Officer Mr Cory Bannister told International Finance, “One of the biggest changes we have seen in the market, as a direct response to the complexity and uncertainty of the past few years, is an increased demand for flexible lending and for support of those in the ‘complex credit’ space”.
This ‘demand’ has presented a unique opportunity for Australian non-bank lenders and brokers to service borrowers and market segments with credit availability/support at a critical juncture of the Australian economy.
La Trobe Financial has excelled in this environment as its ‘others before self’ philosophy has led the company to pioneer lending solutions for underserved borrowers, many of whom, otherwise, would have been avoided by traditional lenders.
Mr Cory Bannister remarked, “Due to the personalised nature of our credit assessments and our willingness to take the time to fully understand a borrower’s unique circumstance, our team – which is one of the largest in the sector – can provide appropriately tailored solutions for those ‘round peg’ borrowers who still need access to capital.”
La Trobe Financial offers one of the broadest product ranges in the Australian non-bank lending sector and has a team dedicated to finding solutions, ensuring clients are covered regardless of the economic environment.