02 May 2013

 Dear Investor,

With the end of financial year approaching, it is now timely to conduct a review of your financial position and make any changes that may be required to maximise the return on your investments. Things you may wish to consider include:

Review your investment strategy

In recent years, more and more investment professionals have been preaching the importance of life cycle investing. There is a very good reason for this. With the onset of the GFC, many investors with a large portion in investments in growth assets saw a large portion of their portfolio disappear, resulting in the delay of retirement and the return to work of those who had previously retired. Many investors who were unable to return to work were forced to dramatically change their lifestyle to cope with their reduced income. This financial year may be the perfect time to consider whether your investments provide sufficient protection for your future.

Prepay interest on investment loans

Prepaying interest for the 2013/2014 financial year may enable you to offset the interest expense against your other income. Prepaying interest on investment loans (including margin loans) can also allow you to 'lock in' a fixed rate of interest, providing budget certainty for the year ahead.

Gearing strategies

Enhancing your capacity to hold a diversified portfolio of securities can often provide a tax effective solution to growing your wealth over time. Strategies can be implemented to manage an imminent tax liability or be structured in a capital protected manner eliminating margin calls.

Reviewing your insurance position

Income Protection insurance is an important consideration for those clients with families, outstanding debts and/or a single main income earner. The Australian Taxation Office generally allows the cost of any premiums paid to insure the loss of your income to be claimed as a deduction. In addition, premiums pre-paid for up to twelve months in advance may be deductible in the year that the expense is incurred.

Managing capital gains and losses

Capital gains realised this financial year may be offset by capital losses carried forward. Alternatively, you might look to crystallise some capital losses to offset these capital gains. Generally speaking, offsetting losses against gains made on securities that have been held for less than twelve months may be effective in the first instance, as the capital gains tax discount is not available in this case. Where you don’t have any capital losses to utilise, selling securities that have been held for at least twelve months may be the more relevant strategy to benefit from the capital gains tax discount. In addition, deferring or bringing forward the planned sale of an asset may be beneficial. The strategy most appropriate to you will depend on your individual circumstances.

Superannuation strategies including additional contributions

Superannuation provides a tax-efficient environment for your retirement savings. Depending on your personal circumstances, increasing the amount of wealth you hold through superannuation by making additional contributions, either through salary sacrifice or lump sum contributions, may be worthwhile. It is important to double check your contributions to date to ensure you maximise but don’t exceed the legislated limits.

On 5 April 2013 the Federal Government announced a number of proposed changes to superannuation laws, including that from 1 July 2014 earnings in pension phase will be tax free only up to $100,000 a year for each individual. Earnings above $100,000 will be taxed at the same rate of 15 per cent that applies to earnings in the accumulation phase. A more positive development is that for people aged over 60, concessional caps will be increased from $25,000 to $35,000 from 1 July 2013. The revised caps will be extended to those aged 50 and over from 1 July 2014. If these changes are enacted (which is not assured) we still feel superannuation will continue to be a favourable environment to hold assets for high net worth clients compared to having earnings on investment assets assessable in their own names.


Making a tax deductible donation to Deductible Gift Recipients (DGRs) can represent an alternative strategy for those seeking to reduce their tax liability prior to the end of the financial year. If you have a deeper interest in philanthropy, other strategies to consider include creating a Private Ancillary Fund or establishing an account in a Public Ancillary Fund. Donations through both of these structures are tax deductible.

As always, we recommend that you consult with your accountant or financial advisor before making any investment decisions.

 Best regards,
Chris Andrews
Head of Funds Management

The following awards and ratings were given to the Pooled Mortgage Option within the La Trobe Financial Mortgage Fund


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Randal Williams
Chief Wealth Management Officer

t  +61 3 8610 2831
e  rwilliams@latrobefinancial.com.au

Chris Andrews
03 8610 2811
Vice President, Head of Funds Management
Daryl Hill
0408 566 524
Vice President, Head of Major Clients

Michael Watson
0409 419 039
Senior Manager Client Partnerships
Megan Pfab
0408 126 664
Senior Manager Client Partnerships
Jason Gidman
03 8610 2818
Cheree Cain
03 8610 2810
Funds Operations
Richard Anstey
03 8610 2809

Freddy Gong
03 8610 2858
Assistant Portfolio Manager
Helmuth Ewinger
03 8610 2833
Senior Manager Client Partnerships
Stacey Hynes
03 8610 2805
Senior Manager Client Partnerships
Peter Polemikos
03 8610 2834
Senior Manager Client Partnerships
Terrie Simpson
02 9238 2065
Senior Manager Client Partnerships
Jo Ni
03 8610 2803
Investor Administration Officer
Ada Yeung
03 8610 2865
Investor Administration Officer

La Trobe Financial 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 145 staff and has raised over AUD$10Billion to assist over 100,000 customers since inception in 1952.

Copyright 2013 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. The PDS is available on our website www.latrobefinancial.com.au or by calling 1800 818 818. You should consider carefully whether or not investing in the Fund is appropriate for you.
- The rates of return from the Fund are not guaranteed and are determined by future revenue of the Fund and may be lower than expected. Investors risk losing some or all of their principal investment. The investment is not a bank deposit.
- Past performance is no guarantee of future performance.
- Withdrawal rights are subject to liquidity and may be delayed or suspended.
- The award and ratings were given to the Pooled Mortgages Option within the La Trobe Australian Mortgage Fund.
- The rating is only one factor to be taken into account in deciding to invest.
1. Zenith's "recommended" rating indicates that it has high confidence in the manager meeting its objectives. The Zenith Investment Partners ("Zenith") ABN 60 332 047 314 rating referred to in this document is limited to "General Advice" (as defined by section 766B of Corporations Act 2001) and based solely on the assessment of the investment merits of the financial product on this basis. It is not a specific recommendation to purchase, sell or hold the relevant product(s), and Zenith advises that individual investors should seek their own independent financial advice before investing in this product. To view the relevant research information, please visit www.latrobefinancial.com.au The rating is subject to change without notice and Zenith has no obligation to update this document following publication. Zenith usually receives a fee for rating the fund manager and product against accepted criteria considered comprehensive and objective.
2. SQM Research - 4 stars to 4.25 stars - superior, suitable for inclusion on most Approved Product Lists. To view the relevant research information, please visit www.latrobefinancial.com.au This rating will not take into account your, or your clients' objectives, financial situation or needs. It is up to investors to consider whether specific financial products are suitable for your objectives, financial situation or needs. Research houses receive a fee from La Trobe Financial for rating the product.
3. Lipper Leaders Rating Total Return (Score – 5) Lipper Ratings for Total Return reflect funds’ historical return performance relative to peers. The ratings are subject to change every month. The highest 20% of funds in each peer group are named Lipper Leader or a score of 5 for Total Return. Lipper Leader ratings are not intended to predict future results and does not guarantee the accuracy of this information. More information is available at www.lipperweb.com. Thomson Reuters Copyright, All Rights Reserved.