04 March 2011
MOST INNOVATIVE FUND AWARD FOR LA TROBE FINANCIAL
The Second World War was a merciless teacher. Papua New Guinea and the Kokoda Trail
produced men who knew the value of order and fellowship and how it could save lives.
One such man was the founder of La Trobe Financial, Ray O'Neill. He figured that if rigor,
discipline and sense of comradeship were so valuable in the fluid situation of war then
they could equally be applied to business.
Apply them he did. Sixty years ago he established the values that this week earned
La Trobe the most Innovative Fund award at the Melbourne Financial Services
Symposium (MFSS). Not a first for La Trobe Financial either - over the last two years it
has been lauded by Money magazine as the "Best of The Best" in 2010 and 2011 for its Mortgage Fund.
La Trobe Financial's current CEO Greg O'Neill (the founder's son) said "These 'innovative'
values - the sanctity of the client's money, conservatism in investment, and thoroughly
understanding the business we are in contributed to the 'overnight' success that took sixty
years. All our Investors - Wholesale Institutions, banks and individuals, have benefited."
The MFSS Award Chairman of the expert judging panel, Mr John Gall, made special
mention of La Trobe Financial's outstanding performance throughout the recent Global
Financial Crisis. Unlike many other companies, La Trobe Financial has continued through
this period to pay outstanding returns to its investors and never refused or delayed a
The innovations highlighted by the judging panel of the Awards in the La Trobe Australian
Mortgage Fund were as follows:
- Dedicated Income Reserve which ensures that investors received reliable monthly
income by smoothing income distributions and providing significant protection from
capital losses. Because of the Reserve, there has been not a single cent lost of investor
capital in the Pooled Mortgages Option ("PMO") since its inception in 2002.
- Co-investment which dramatically improves the diversification of the Fund by
allowing the PMO to co-invest in mortgages with other funders. As a consequence,
the PMO's average investment in any single loan is an industry low of around
$200,000. This massively reduces the risk profile of the PMO for its investors.
- Term investment structure which provides a closer match between the assets and
liabilities of the PMO and is the most fundamentally sound structure for any mortgage
fund. The targeted term structure of the PMO is a key reason that it has never had to
freeze, restrict or delay redemptions at any time in its history2.
Regular readers of Investment News will be aware that the PMO has also:
- recently had its independent rating by Adviser Edge increased to 3.75 stars (from 3.5 stars), which is the highest rating for any mortgage fund in Australia4; and
- retained its top ranking by Morningstar for returns by any mortgage fund over 1, 3, 5 and 7 years3.
Call our friendly Investor Liaison team on 1800 818 818 to see how the Pooled Mortgages Option can benefit you.
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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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