12th March 2008

Dear Investor,

Funds Under Management

As at the end of February 2008, funds under management exceeded $351 million.

Research Rating

The Pooled Mortgages Option has been independently rated. A copy of the Rating Report is available on request.

Investment Objective

To provide investors regular monthly income with a low level of investment risk and volatility. To outperform the UBSA (UBS Australia) Bank Bill Index over one year (after fees and charges) on all mortgage investments. Please refer to the Chart under the heading 'Investment Options' for our investment performance.

Four (4) Investment Options

Investors may choose from four (4) investment options in the Fund. The indicative rate for each follows:

(1) Cash & Mortgages 6.80% p.a.ˆ
(2) Pooled Mortgages 7.80% p.a.ˆ
(3) Select Mortgages up to 10.00% p.a.ˆ *
(4) Special Situation Mortgages up to 17.50% p.a.ˆ *
* Subject to availability

The Manager

La Trobe Financial Asset Management Limited ("La Trobe") is an unlisted public company and licensed Australian Fund Manager holding an AFS Licence issued by the national regulator the Australian Securities & Investments Commission ("ASIC") to operate the La Trobe Australian Mortgage Fund ("the Fund"). La Trobe is a specialist manager of retail and institutional mortgage investments. The Group holds a number of important Institutional mandates. La Trobe is one of Australia's leading independent specialist mortgage financiers. Its business includes residential mortgages, commercial mortgages, and investment services operating Australia's 13th largest Mortgage Fund under AFSL 222213. It employs over 140 staff and has raised over AUD$9.3 Billion to assist over 96,000 customers since inception in 1952.

Investment Strategy

The Fund primarily invests in a diversified portfolio of domestic Australian residential mortgages, with a spread of retail, commercial, industrial and rural properties, and other income producing assets. The Fund may appeal to investors who are interested in achieving a regular income from mortgage secured investments.

Investment Style

To ensure consistent performance across a range of market conditions through a balanced investment approach. The Fund's mortgage portfolio is diversified at a number of levels, including sector, interest rate type, geographic location and loan size.

Key Features of the Fund

  • Mortgage to Cash Ratio 93:7;
  • Returns paid monthly or quarterly to Australian/Overseas banks accounts;
  • Established Manager with over 50 years proven track record;
  • Direct banking of income and withdrawals;
  • No entry fee;
  • Minimum investment $1,000;
  • Average Fund Loan-to-Valuation Ratio 59.65%;
  • Funds Under Management exceed $351 million;
  • Average Fund Loan size $259,778

Investment Options

Investment Option
Historical Performance (30 June 07)
Current %p.a.
6 months %p.a.
1 Year %p.a.
2 Years %p.a
3 Years %p.a
5 Years %p.a.
1. Cash & Mortgages
6.80ˆ
6.02
5.77
5.56
5.40
5.03
2.Pooled Mortgages
7.80ˆ
7.25
7.29
7.40
7.38
-
3. Select Mortgages*
10.25ˆ
9.85
9.83
9.89
9.94
9.85
4. Special Situation Mortgages*
16.42ˆ
16.18
16.33
16.48
16.82
16.84
Benchmark - UBSA Bill Index
6.83ˆ
6.26
6.42
6.09
5.94
5.61

Portfolio Breakdown of the Fund

To ensure consistent performance across a range of market conditions, the Fund is diversified at a number of levels.

Asset Profile

There are 1,256 loans within the Fund. No single loan is greater than 5% of the Fund's assets. The current average Fund loan to valuation ratio is 59.65%.

Asset Class
%
Registered mortgages
92.80
Cash
7.20
Total
100.00

 

Interest Rate Type
%
Fixed rate loans
55.02
Variable rate loans
44.98
Tital
100.00

Mortgage Allocation

44.96% Residential
13.90% Vacant Land
14.61% Commercial
16.52% Rural
10.01% Industrial
100.00% Total

Construction & Development loans currently represent 16.34% of the mortgage allocation across the five asset classes.

Geographic Profile

23.33% New South Wales
24.31% Victoria
29.23% Queensland
14.02% Western Australia
4.89% TAS, ACT, NT
4.22% South Australia
100.00% Total

Loan Size
Total Assets %

Value $

Largest Fund loan
2.68
9,410,000
Average Fund loan
0.07
259,778
No. of Loans >$1M (40)
27.70
94,411,212

Notes: Returns are calculated after fees and expenses. ˆ The rates of return from the Fund are not guaranteed and are determined by future profits of the Fund. The historical performance of the Special Situation Mortgages Option is based on 2nd mortgages made by the Fund over the past five (5) years. * These rates represent the average rates payable on the mortgage portfolio of each Option and may not be indicative of the returns on the investment selections of individual investors. All figures contained in this newsletter are accurate as at 29 February 2008, unless otherwise indicated.


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.