4th July 2007

Dear Investor,

Australia one of the world’s top 20 largest economies

Australia ranks in the world’s top 20 largest economies, entering into our sixteenth year of economic expansion. This is partly due to Australia having developed a sophisticated and growing funds management industry. At $1trillion, our funds management industry is the largest in the Asian Pacific region and fourth largest in the world.

Australia also leads the world in terms of funds under management per person which is currently A$50,000.00 (surpassing the United States by 20 per cent). This reflects an increase of around 115% over the last five years alone.

Funds management is a bigger contributor to the Australian economy than agriculture, utilities (electricity, gas and water) and communications.

The main driver for this leadership performance has been compulsory superannuation, which was introduced in the 1980s. However the strengths of the industry now include an increasingly sophisticated investor base, innovative investment products and strong regulatory bodies operating within a well respected framework.

The Australian Bureau of Statistics (ABS) advises that growth is led by fund managers in cash management, public unit trusts and superannuation, taking interest away from life offices, common funds and friendly societies. The types of assets that have experienced growth are overseas assets (averaging 19.3% per annum), equities and unit trusts (15.7%). Mortgage Funds have roughly $20billion invested across Australia.

Funds Management is a commercial enterprise that manages investors’ money for a fee. When the fund is a managed investment scheme, the fund manager is usually the Responsible Entity*.

Fund managers can invest in everything from shares, bonds, mortgage portfolios or real estate to commodities, such as oil, wheat or aluminum. Different clients are prepared to tolerate different amounts of risk, so fund managers usually run several funds or investment options. Some offer fast growth and high risks; others offer slower growth and lower risks.

La Trobe is the Responsible Entity for the La Trobe Australian Mortgage Fund. La Trobe is a specialist manager of retail and institutional mortgage investments. The managed investment options currently offered by the La Trobe Fund are: 1. Cash & Mortgages Option (Indicative Risk Level – Low), 2. Pooled Mortgages Option (Low-Medium), 3. Select Mortgages Option (Medium) and 4. Special Situation Mortgages (Medium-High). Funds Under Management from retail investors currently exceed $389 million**. The broader La Trobe enterprise manages over $1.3billion.

*An ASIC licensed entity or body that operates a managed investment scheme.
**As at 31 May 2007

Best regards,
Chris Andrews


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Chris Andrews
Head of Funds Management

t  +61 3 8610 2811
e  candrews@latrobefinancial.com.au

Chris Andrews is the Head of Funds Management for the La Trobe Group and has responsibility for the La Trobe Australian Mortgage Fund.
Read full profile here.

La Trobe is one of Australia's leading independent specialist mortgage Financiers. Its business includes residential mortgages, commercial mortgages, and investment services operating one of Australia's largest Mortgage Funds under AFSL 222213. It employs over 115 staff and has raised over AUD$10Billion to assist over 100,000 customers since inception in 1952.

Copyright 2010 La Trobe Financial. All rights reserved. No portion of this may be reproduced, copied, or in any way reused without written permission from La Trobe Financial. Disclaimer

* La Trobe Financial Asset Management Limited ABN: 27 007 332 363 and AFSL No: 222213 is the issuer and manager of the La Trobe Australian Mortgage Fund. It is important for you to read the Product Disclosure Statement for the Fund before you make any investment decision. You can get a copy of the PDS by calling 1800 818 818. You should consider carefully whether or not investing in the Fund is appropriate for you.
(1) The rates of return from the Fund are not guaranteed and are determined by future revenue of the Fund, and may achieve lower than expected returns. Past performance is no guarantee of future performance. Investors risk losing some or all of their principal investment.
(2) Withdrawal rights are subject to liquidity and may be delayed or suspended.
(3) As at 30/11/10 the La Trobe Australian Mortgage Fund had received a Morningstar RatingTM of 5 stars. The Morningstar Rating is an assessment of a fund's past performance - based on both return and risk - which shows how similar investments compare with their competitors. A high rating alone is insufficient basis for an investment decision. © 2010 Morningstar, Inc. All rights reserved. Neither Morningstar, nor its affiliates nor their content providers guarantee the above data or content to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. You should consider the advice in light of these matters and, if applicable, the relevant product disclosure statement, before making any decision. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.pdf
(4) 3.75 star rating out of a possible 5 star rating indicates that Adviser Edge believes that La Trobe has performed in line with its peers and exceeded its peers on some fronts.
(5) The Standard and Poors rating of 4 out of 5 stars indicates that S + P has high conviction that La Trobe Financial will consistently generate risk-adjusted fund returns in excess of its relevant investment objectives and relative to its peers.
(6) The award was given to the La Trobe Australian Mortgage Fund, Pooled Mortgages Option.
Research Ratings are subject to change. To view the latest research information please visit www.adviseredge.com.au or www.standardandpoors.com.au. Ratings issued by Adviser Edge Investment Research AFS Licence No. 236783 and Standard & Poors Information Services (Australia) Pty Ltd AFS Licence No. 258896 are solely statements of opinion and not statements of fact or recommendations to purchase, hold, or sell any securities or make any other investment decisions. The ratings are only one factor to be taken into account in deciding to invest. Research Houses receive a fee from La Trobe for rating the product. The Adviser Edge rating is generally a measure of the rated entity's capacity to meet its repayment obligations in all market circumstances.
IMPORTANT: This message, together with the La Trobe Financial website (www.latrobefinancial.com.au) and all its contents have been prepared for general information only and should not be taken as legal or financial advice, and as such the specific needs, investment objectives or financial situation of any particular user have not been taken into consideration. Individuals should therefore talk with their financial planner or advisor before acting on any information present on this message or the La Trobe website.