The Fund, in particular the Pooled Mortgage’s Option (PMO) was established in 2002 to provide investors with exposure to a pool of loans secured by a diversified, Australia-wide portfolio of mortgages. It has won a number of national and international awards and has become a sought after option in the La Trobe Australian Mortgage Fund as it has always been able to pay eligible redemptions and not a single investor has ever lost capital since inception.

The PMO’s manager, La Trobe Financial was established in 1952 as a specialist funds manager and credit specialist lender. The President & CEO of La Trobe Financial, Mr Greg O’Neill, stated that “we are very pleased to receive such a strong and positive review from one of Australia’s leading research houses.”

O’Neill was particularly pleased with the comments made by SQM’s Managing Director, Louis Christopher, in releasing the report. Christopher stated: “The rating reflects SQM Research’s continued faith in the Fund’s skilled and experienced investment team. Moreover, the Fund has been able to record strong outperformance to its stated benchmark and the broader peer group over the year………The Fund has also continued to record strong growth in funds under management, recording 44.5% growth over the year to August 2014.”

Christopher further added “The La Trobe Financial Group has continued to remain strong, even when some of its competitors have had to close down. SQM Research views the prudent measures put in place at La Trobe favourably.” Chris Andrews, Vice President & Head of Funds Management commented that “the key reasons for the strong performance of the fund are our industrial strength credit assessment process, highly conservative LVR maxima and rigorous portfolio selection criteria. We emphasise diversification to reduce portfolio risk and highly focussed asset management.”

In addition and only recently, International Finance Magazine in London acknowledged La Trobe Financial for two Awards – Best Investment Management Company Australia and Best Mortgage Fund Australasia. Shortly following this announcement reputable finance journal Money magazine acknowledged the Pool Mortgages Option of the Fund as the Best Mortgage Fund in Australia for the sixth consecutive year.

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“There are a number of key reasons for this upgrade – most notably the Fund’s continued strong performance with returns above 10% over a consistent period, together with improved portfolio quality,” said Louis Christopher, Head of Research from SQM Research.

Christopher continues, “Provident Capital continue to manage the portfolio prudently, as reflected by loan to valuation ratios remaining below 60%, and increased diversification across borrowers, loans, sectors and states. It’s clear that as fund manager they have been working to maintain the Fund’s strong performance without compromising portfolio quality, and their efforts are paying off as reflected in this upgrade”.

 “We are very pleased with the upgrade to 3.75 stars,” said Alex François, Provident Capital’s Head of Distribution – Investments. “We’re confident this revised rating more accurately reflects the nature of the Fund especially when you consider our consistent performance track record since inception. We are also delighted with the rate of growth of funds under management and recent addition of the Fund to a number of platforms and APLs. This now makes the Fund more broadly available to advisers and dealer groups seeking consistent monthly income for their clients” said Francois.
 
The Fund aims to provide investors with competitive monthly returns that are in the top 25% of all Australian retail mortgage investment trusts based on returns for 1 year, and to date has consistently met this objective, with a current top-performing return of 10.79% p.a.* as at 31 December 2011.

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