19 August 2009

Dear Investor,

Growing for Retirement Investment Products

La Trobe's Mortgage Fund is an emerging participant in the high growth Australian funds management industry.
La Trobe believes 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:

1992 2031
Population (million) 17.5 25.2
Grouped Ages (years)
0 - 14 21.6% 16.2%
15 - 44 47.2% 37.1%
45 - 64 19.7% 25.9%
65 and over 11.5% 20.8%
Median Age (years) 32.8 42.5

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 investment planning 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 by the Retirement Income Marketing Unit of the 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
$m current
Self Employed

$m current

$m current
Total all Funds

$m current
2000 63,482 32,855 329,655 426,002
2005 91,672 40,076 511,484 643,232
2010 119,643 46,845 764,723 931,211
2015 149,790 53,123 1,077,177 1,280,090
2020 181,449 59,967 1,457,918 1,699,334

It is interesting to note that these projections are likely to be met earlier than expected and exceeded. We 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 we 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 over the period ahead and increase our distribution capacity to reach more investors.

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.