12th September 2007
The Market for Retirement Investment Products
La Trobe’s Mortgage Fund is an emerging participant in the high growth Australian funds management industry.
The Directors of La Trobe believe that opportunities for growth in this industry are excellent and that La
Trobe is well positioned to capture an increasing share in this expanding market.
The population projections for Australia to the year 2031 as prepared by the Australian Bureau of Statistics
in 1990 are as follows:
|Grouped Ages (years)
|0 – 14
|15 – 44
|45 – 64
|65 and over
|Median Age (years)
The above statistics suggest that the burden on the Australian Government of providing social security
support to retirees in years to come will become onerous due to the declining percentage of working adults.
As a result, the Australian Government has encouraged personal superannuation savings to provide for
retirement. The management of superannuation guarantee contributions, which are now mandatory for employers,
is another area for which financial planning advice is increasingly sought. The superannuation guarantee
contribution has increased from 6% of an employee’s salary in 1997 to 9% from 1 July 2002, increasing the
amount of DIY super fund formation and DIY investment monies in the system.
A paper presented in February, 2006 by the Retirement Income Marketing Unit Department of the Treasury
estimates that the funds invested in superannuation savings would grow from $426 billion in June 2000,
to $931 billion in 2010 and $1,699 billion in 2020, as summarised in the table below:
||Personal and Rollover
|Total all Funds
It is interesting to note that these projections are likely to be met earlier than expected and exceeded.
The Directors expect that groups who can innovate and capitalise on the emerging trends in the retail
financial services industry will have outstanding growth prospects.
Based on the above growth trends, prospects for La Trobe are positive and the Directors expect funds will
continue to become available for investment from individuals who are saving for retirement or who on
retirement, receive lump sum payments. It is therefore La Trobe’s intention to capitalise on the emerging
opportunities in financial planning and funds management by developing additional investment options in our
Fund for our investors and distribution capacity through licensed financial planners.
> About Us
> PDS - Want to invest?
> Subscribe Free
> Independent Ratings
> Mortgage Shopping List
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.
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