22nd August 2007

Dear Investor,

Increase in Crediting Rates

We are pleased to announce that the crediting rates for our Cash & Mortgages Option and Pooled Mortgages Option will be increasing by 0.25%, with effect from 1 September 2007.

The new crediting rates will be:

Cash & Mortgages Option 6.35%* pa

Pooled Mortgages Option 7.50%* pa

These increases follow the increase in official interest rates announced by the Reserve Bank on Wednesday 8 August 2007.

An increase in official interest rates by the Reserve Bank affects most directly borrowers who have variable rate loans. Financial institutions and lenders like La Trobe generally pass on these increases to borrowers. Those borrowers fortunate enough to have fixed rate mortgages are not immediately affected by these interest rate rises.

In determining the crediting rates that we pay to investors in La Trobe’s mortgage fund, we take into account the extent to which we can pass on increases in official interest rates to borrowers from the fund. In the current situation, we felt confident to increase the crediting rates for the Cash & Mortgages Option and the Pooled Mortgages Option by the same amount as announced by the Reserve Bank.

You will appreciate that when interest rates are on the rise, it can, as Charles Dickens wrote, be the best of times and the worst of times. If you are lucky enough to be an investor in these times, you can benefit from the increases in interest rates. If, on the other hand, you are a borrower, your interest repayments are likely to increase.

With these new crediting rates, we believe that you will find La Trobe’s mortgage fund to be even more competitive, and the increase in rates for investors, along with the strong independent ratings^ from Property Investment Research and Standard and Poor’s, confirm La Trobe’s mortgage fund as a premium investment option.

If you have any queries regarding these increases in the crediting rates, please do not hesitate to contact us on 1800 707 707.

*The rates of return from the Fund are not guaranteed and are determined by the future profits of the Fund. ^Property Investment Research and Standard and Poor’s Ratings reports are available from our website www.latrobefinancial.com.au

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.