20th May 2009

Dear Investor,

Is your Term Deposit maturing?

Many investors are facing the hard decision of whether or not to roll their money into another term deposit at a somewhat reduced rate or look for alternative investment opportunities.

La Trobe believes low bank deposit interest rates are leading some investors to start looking at quality returns from fixed interest investments and mortgage funds. Our Pooled Mortgages Option has increased funds under management every month in 2009 and generally we have had a 30% increase in investor application requests over the past month.

Why Managed Funds?

Building wealth using managed funds should deliver higher returns on your money than cash over the mid-to-long term. As with many forms of investing, the higher the returns, the higher the risk. As a result for some investments it's important that you have time on your side, as such investments usually have a recommended time horizon of one to three years to allow you to ride out the ups and downs of the market.

However, different managed fund investments have very different return profiles, so understanding the product risks is key. Low volatility products such as conservative mortgage funds should offer regular and relatively stable income, and capital value that varies only if both borrower defaults and the security value reduces considerably.

By way of example, our Pooled Mortgages Option’s rate of monthly return since October 2003 has only moved between 6.95% and 8.25% and there has never been a loss in investors’ capital value.1

Differentiation and diversification from cash rate based products are also underlined by the premium of the Pooled Mortgages Option’s present distribution rate (6.95%).1 to the official cash rate (3.0%) which is at cyclical highs.

It is also important to note that in times of uncertainty, investors should always look to diversify their investments using respected and proven managers. All of the better known managers have diversified funds that allow the individual investor to select investment options which meet their risk profile. La Trobe offer our investors four investment options, Cash and Mortgages, Pooled, Select, and Special Select.

IMPORTANT: You Do Not need to pay entry fees when investing in managed funds!

Nearly all fund managers charge an entry fee (up to 6% of your investment) on managed funds. DO NOT PAY IT! There is no catch; La Trobe does not charge any entry fees. The full amount you deposit is paid directly to our account. You just need to ensure that the application you send in has your bank account details so your monthly income can commence immediately.

If you do not understand how La Trobe can save you money or if you have any concerns, please call our investor liaison team on 1800 818 818 and we will explain over the phone the benefits of our fund. A simple phone call may save you hundreds of dollars. And once you understand that you really do not have to pay entry fees on managed funds you will be telling everyone you know.

La Trobe Australian Mortgage Fund now paying PMO 6.95% p.a.1 variable; CMO 5.25% p.a.1 variable; Select Mortgages Option up to 10.90% p.a.*1 fixed/variable; Special Mortgages Option up to 18.50% p.a.*1 *Subject to availability.

Youth should thank their parents

A little message I recently received from a great friend started me thinking as to how we can learn from the past and the older generation. In fact we thought its reprinting here could be beneficial for those of us with children or grandchildren who think they know it all… it is a timely reminder to today's youth to 'get some perspective'. It is condensed from an address to graduating University students reprinted from "Better Business" and hope that our Investor base appreciates the sentiment.

We have many commentators telling today's youth what a mess the older generation have made of the world, and that youth are the only hope of mankind or how bright and better educated they are. I'm going to reverse the process.

What Youth of today should read?

Your parents and grandparents are the people who in just five decades (1920–1970) have, by their work, increased your life expectancy by about 50 percent. These are the people who, while cutting work time by a third, have more than doubled per capita output.

These are the people who have given you a healthier world than they found. Because of this, you no longer have to fear epidemics of typhus, diphtheria, smallpox, scarlet fever, measles, polio or TB, as they did.

Let me remind you that these remarkable people lived through history's worst depression. Many of them know what it's like to be hungry, cold and poor. And because of that, they were determined that you would have a better world, a better life; you would have food to eat, a warm home, better schools and great opportunities to succeed than they had.

Because they gave you the best, you are the tallest, healthiest, brightest and probably best looking generation to inherit the land.

Because they lived productive lives and worked hard often without reward, you will work fewer hours, learn more, have more leisure time, travel to more distant places and have more chances to follow your ambitions. These are the people who helped defeat tyranny, and when it was all over, had the compassion to spend billions of dollars to help their former enemies rebuild their homelands.

While they have done all these things, they have had some failures. They have not found an alternative to war, or overcome racial hatred.

Perhaps you will find the mechanisms or answers to these and other problems that still plague mankind. It won't be easy, and it won’t be done by negative thoughts nor by tearing down and rebuilding, nor by belittling.

You may do it; by hard work, humanity, hope, and faith in mankind – and in yourself and others.

Best regards,
Chris Andrews


> Home
> About Us
> PDS - Want to invest?
> FAQs
> Subscribe Free
> Independent Ratings
> Mortgage Shopping List

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.