19th July 2007
Standard & Poor’s award 3 stars to the La Trobe Australian Mortgage Fund – Pooled Mortgages Option
Australians are estimated to have more than $22billion invested in mortgage funds, with the largest retail fund having assets of close to $2billion.
One of the worlds largest credit rating agencies Standards and Poor’s (“S&P”) has just completed its review on 52 of the top mortgage funds operating in Australia and have rated the La Trobe Australian Mortgage Fund (‘the Fund”) with three stars out of a possible five stars. This rating focuses on the Pooled Mortgages Option of the Fund and compliments an earlier rating by PIR (Property Investment Research Pty Ltd) in June 2007 rating the Fund four stars out of a possible five.
This is the first time S&P have reviewed and rated the Fund. In awarding the Pooled Mortgage Option three stars, S&P reviewed the Fund’s performance against criteria that included; day to day management of the Fund, portfolio diversification, risk rating management, business status and people and process management.
In its report of the Fund, S&P acknowledges La Trobe’s 50 year track record across multiple economic cycles, sound lending capability and investments process along with an experienced senior management team. S&P notes that La Trobe’s investment processes are well documented and articulated and also highlights La Trobe’s aim to achieve a high level of client service. In the area of Risk Management, S&P state that, “The Pooled Mortgage portfolio is well diversified by geography and by loan number, with 308 loans, with an average loan size of A$194,000”.
You can find S&P’s full Report on our website at www.latrobefinancial.com.au
Greg O’Neill, CEO of La Trobe said “The first time rating of three stars from an internationally recognised ratings agency reflects on the 50 year commitment of the company in managing mortgages and the focus on steady returns to investors. Moreover it compliments a strong year for our team who have been responsible for a 4 star rating from PIR, and our Silver award in Money Magazine’s 2007 Best of the Best, Cash Management Trust – Non Bank category for the Fund’s Cash & Mortgages Option”.
Notwithstanding any rating, Investors should however never forget the three (3) immutable rules of investing:
- never put all your eggs in one basket (diversify);
- a higher rate of return always equals higher risk; and
- getting rich slowly will never go out of fashion.
Therefore it is imperative when investing to look at the track record, capacity and the background of the operator and principals working in the business, and to consider skeptically before you accept advice from anyone to borrow against the value of your home to invest, the latter being a standard hallmark of get rich quick schemes.
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Head of Funds Management
t +61 3 8610 2811
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.
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