19th July 2007

Dear Investor,

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.

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.