19th September 2007
Does Size Really Matter?
According to independent research specialist on property related assets, Property Investment
Research Pty Ltd (“PIR”), our mortgage Fund is currently Australia’s 13th largest Mortgage Fund.
In terms of our Select Mortgages Investment Option, we offer the largest select or “contributory”
mortgage option in Australia – that is where an investor chooses the underlying mortgage to
Specific benefits to investors
History of the company
- Experienced Investment Manager – specific to the mortgage industry – we focus exclusively on mortgages and have a track record back to 1952;
- The Investment Manager originated over $2.06billion of mortgage loan enquiries in 2007 (2006: $2.7billion) giving strong deal flow to the Fund;
- Competitive risk-reward returns with investor choice of four (4) Investment Options;
- Independently rated;
- Monthly income deposited directly into the investor’s bank account;
- A diversified portfolio of mortgages over Australian real property;
- All properties independently valued;
- Group Funds under management over $1.4 billion;
- One of Australia’s largest mortgage funds;
- Real property mortgage security;
- Capital stable investment in mortgages with all securities independently valued and actively managed;
- No investment entry fees;
- No exit fees, on maturity of the investment;
- Minimum investment of $1,000;
- Flexibility for the investor to manage his or her investments to meet his or her own needs and risk profile;
- Conservative average loan to valuation ratio 59.87% (as at 31 August, 2007); and
- No foreign exchange exposure risks.
- Minimum investment $1,000
- Minimum investment term for the Pooled Mortgages Option - 12 months
- Investment term for the Select and Special Situation Options – Loan terms range from 12 months to 5 years.
La Trobe commenced operations in 1952, and has grown steadily and consistently since then. The
company remains privately owned and highly focused, employing over 130 finance professionals. We
have authorised representatives in each state of Australia, and total mortgage loans exceeding
$1.4 billion spread across Australia.
La Trobe has managed and maintained a significant number of Institutional mortgage funding
investment mandates since inception, and has lent more than $9.3 billion to over 96,000 customers
cumulatively. In 1990 we decided to diversify our funding base from purely institutional mandates
to include retail investments. We embraced new financing and investment structures, including our
managed investment scheme, the La Trobe Australian Mortgage Fund, which now serves over 3,500
active members and some $400m in funds under management invested by the retail public.
How we rank our fund compared to others in the sector
La Trobe’s Fund compares favourably to others in the same space on a host of measures:
- Our rate of return for just one of our investment options, the Pooled Mortgages Option at 7.50% p.a.* is higher than the average of top 7 major mortgage funds operating in Australia who offer a 5.81% pa average return for their equivalent investment;
- Sector and geographical diversification of the Fund is strong with limited exposure to high risk development projects, (less than 11% as at Aug 07), and the Fund has a high bias towards lower risk residential houses;
- The Investment Manager has a strong ability to source continuous credit quality loan applications (strong deal flow) for the Fund with over $2.06 billion sourced this year;
- Strong track record of staff and key personnel, with over 130 full time staff;
- An Indirect Cost Ration (ICR) of 1.35% just slightly higher than the industry benchmark of 1.3%;
- Cash-to-mortgage ratio of 6.28%:93.72% as at Aug 07 (other funds have under-deployed cash assets diluting their investor's monthly returns)
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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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