La Trobe Financial’s retail Credit Fund hits $2 billion FUM milestone


Chris Andrews

Following from its recent acquisition by Blackstone in December 2017, La Trobe Financial has recently announced that its multi award-winning retail Credit Fund has tripled its funds under management (FUM) in the last three years, reaching $2 billion in FUM. La Trobe Financial also announced that total Group FUM is over $5 billion with the balance of assets managed comprised of institutional investment mandates.

La Trobe Financial’s CIO, Chris Andrews said, “the company’s disciplined investment processes and focus on absolute return objectives have been the key drivers of the increased FUM and our great performance metrics.  We have an experienced and growing distribution team, with a strong client service focus building better relations with financial advisers and investors.”

“We’ve seen growing product demand as both investors and their advisers look for ways to achieve return objectives during periods of ongoing uncertainty and volatility across markets,” Andrews said.

Andrews further commented “that one significant factor in the $2 billion milestone is that La Trobe Financial is seeing a higher proportion of SMSF investors in the Fund. Our Credit Fund is playing an increasing role in portfolio diversification for SMSF investors.  Our peer-to-peer offerings have enabled investors to select their investment risk and duration and take more control over their portfolio construction. We remain Australia’s leading peer-to-peer investment provider and this continues to attract the attention of SMSF investors.”

The Fund’s flagship investment term, the 12 Month Term Account, also recently achieved its own $1 billion milestone.  In its most recent ratings review paper, SQM Research’s Louis Christopher made the following statement: “The Fund [12 Month Term Account] has consistently outperformed the benchmark and the peer average and managed to maintain a consistent return at 5.20%pa. since 2015 while the peer group and the benchmark index have fallen over the year, which has been driven by all-time low cash rates and increased competition from the banks resulting in the tightening of margins”.

The La Trobe Financial Credit Fund is available on over ten platforms including Colonial First Wrap, Macquarie Wrap and Netwealth. The La Trobe Financial Credit Fund has also been approved for distribution by over 200 approved product lists across Australia.

Andrews added “following Blackstone’s entry to our share register as an 80% owner, we are well placed to embark on our next phase of growth.  We will also continue to broaden and evolve our product offering to suit investors’ needs”.

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