Fund Manager continues its solid returns in a volatile market

Chris Andrews

Chris Andrews

La Trobe Financial’s Chief Investment Officer, Chris Andrews, has announced that the Pooled Mortgage’s Option (“PMO”), an investment option in the La Trobe Australian Mortgage Fund, has been recognised again with a “Recommended” rating by Zenith Investment Partners.

In the report, Zenith Analyst, Dugald Higgins sates that “the PMO’s performance over the longer term has been robust, showing solid returns over the fund’s benchmark of the Bloomberg AusBond Bank Bil Index +1.5%pa. One key consideration in assessing the La Trobe Financial’s long- term performance is the fact that throughout the global financial crisis, the PMO was able to continue to provide investors with stable income streams, while meeting the liquidity requirements of investors withdrawing their funds.”

The PMO was established in 2002 to provide investors with stable returns with predictable monthly income from a diversified pool of real estate mortgages. Higgins mentions in the report that “La Trobe Financial has carved out an impressive track record in this sector driven by their deep lending experience spanning over 63 years as an organisation.”

The PMO’s manager, La Trobe Financial, was established in 1952 as a credit specialist. Andrews stated that “the combination of a robust loan selection criteria, conservative lending limits, disciplined underwriting process and rigorous recoveries on non-performing loans results in higher returns with controlled risk.”

Andrews further commented that “like any fund, the performance of the PMO is driven by the quality of its assets. We therefore welcome Zenith’s description of our credit assessment processes as robust and stringent”.

Greg O’Neill, La Trobe Financial’s CEO stated that “investors don’t like volatility. They don’t like uncertain returns but they do like investments that generate and preserve capital using asset classes and processes they understand. The objective of the Fund has long been to provide investors with a choice of capital-stable, reliable income generating investment options. The Fund’s continued performance in times of low interest rates continues to attract attention across the market.”

O’Neill further mentioned that “our industrial strength credit assessment process, highly conservative LVR maxima and careful portfolio construction, combined with our co-investment model to buffer the portfolio against the effects of individual asset shortfalls. Our co-investment also provides substantial diversification benefits that is fundamental to the La Trobe Financial investment philosophy.”

La Trobe Financial is also rated by SQM Research (4.25 Stars Superior), Lonsec (Recommended) and Australia Ratings (Strong). The Group’s flagship PMO has also been judged as Australia’s Best Mortgage Fund by reputable finance journal Money magazine for the past 6 consecutive years (2015, 2014, 2013, 2012, 2011 and 2010) The Fund has also received international recognition from International Alternative Investment Review (IAIR) for 3 consecutive years for Excellence in Mortgage Fund Management (2015, 2014 and 2013) and two Awards from the International Finance Magazine for Best Investment Management Company – Australia and Best Mortgage Fund – Australasia.

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