05 May 2011

Dear Investor,


It's official. La Trobe Financial's Australian Mortgage Fund is the highest rated mortgage fund in Australia. Respected ratings house, Standard & Poor's ('S&P') has announced that the Fund's Pooled Mortgages Investment Option is Australia's only four star rated mortgage fund.

This announcement comes on top of other recent accolades for the Fund. In March it was declared "The Most Innovative Fund" at the Melbourne Financial Services Symposium. This in turn followed the announcement in December that Money magazine had judged it to be the Best Mortgage Fund in Australia for the second consecutive year.

In commenting on the rating from Hong Kong, Greg O'Neill, Chief Executive Officer of La Trobe Financial thanked S&P for its continuing commitment to rating the mortgage fund sector and the La Trobe Fund.

Mr O'Neill stated:

"Peter Ward and his team at S&P clearly understand the importance of this sector to retail and platform investors and the rewards for investors with the correct fund manager. A four star rating means S&P has a strong conviction that La Trobe Financial will outperform its benchmark and peers for returns."

S&P stated in its report:

"...This reflects our high conviction that the manager will consistently generate risk-adjusted returns in excess of relevant investment objectives and relative to peers ... Performance has been consistently strong over all periods, delivering a meaningful premium over the high-yield benchmark, without taking on unrewarded risks ... we are comfortable La Trobe can manage any further increases in FUM without detracting from performance."

O'Neill said:

"...this rating confirms S&P's increased satisfaction with La Trobe Financial's operations and fund returns as a leading specialist funds manager in Australia. The Fund targets capital protection and reliable monthly income for investors at a strong premium to cash. Since inception, La Trobe Financial has achieved those objectives and we are very pleased to receive the four star rating."

In awarding the four star rating, S&P highlighted a number of key factors that have contributed to the Fund's success:

  • Its performance has been consistently strong over the full interest rate cycle and has outperformed the peer group and benchmark over all applicable time periods (1, 3 and 5 years);

  • It has continued to grow strongly and deliver premium returns to investors;

  • It is managed by an experienced and stable executive and senior management team with specialised experience in the asset class; and

  • Its unique investment structure allowed it not only to avoid the liquidity stresses that affected other managers in the sector, but also to minimise the excess cash holdings that act as a drag on performance.

La Trobe Financial is a specialist mortgage fund manager and lender that has managed over $10 billion in investor funds and lent to over 100,000 borrowers since it was established in 1952. "It's a very exciting way to celebrate the company's 60th year!" stated O'Neill.

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.