Each month, La Trobe Financial produces a series of short videos providing an update on our business, our portfolios and the macroeconomic environment. This month, we provide an update on our portfolio performance, as well as share our current thinking on the property market and the economy.
Business & Portfolio Update: Chris Paton, Chief Investment Officer
2024 kicked off with a significant milestone for Australia’s premier alternative asset manager, with the La Trobe Australian Credit Fund passing $10 billion in assets under management.
- Investors are receiving distribution rates which sit at their highest point in a decade.
- The careful selection of high-quality assets, and the disciplined and deliberate construction of highly diversified portfolios, bear fruit in times of market volatility and stress.
- Our product range continues to grow with the launch of our US Private Credit strategy^, providing Australian investors a unique opportunity to participate in a generational investment thematic: supporting the rebuild of the U.S middle market.
Economic Update: Michael Watson, Head of Distribution
With a Mexican standoff underway between geopolitical risk, inflation and the threat of recession, 2024 is not without its challenges. We make the case for measured optimism in the year ahead.
- Inflation is slowly receding back towards RBA’s target range, with interest rates almost certainly having peaked.
- Calls for immediate cuts remain premature, and we don’t anticipate them returning to historic lows.
- Australia remains at ‘full employment’.
Credit & Property Market Update – Lilian Chin, Head of Client Partnerships
With the fixed rate cliff now largely behind the banking sector, credit and property markets continue to perform. Perma-bears were mistaken as the reports of the death of the property market were greatly exaggerated.
- Mortgage arrears around the market remain low and controlled.
- Property prices continue to be supported by excess demand and shortfalls in supply.
- High servicing costs will likely lead to a period of sideways movement.
^ The offer to apply for Class A Units in the La Trobe US Private Credit Trust is open to wholesale investors only. Investors applying to invest less than $500,000 will need to produce an accountant’s certificate to support their wholesale status. For more information, please refer to the Application Form (Annexure 2 to the Information Memorandum).
La Trobe Financial Asset Management Limited ACN 007 332 363 Australian Financial Services Licence 222213 Australian Credit Licence 222213 is the responsible entity of the La Trobe Australian Credit Fund ARSN 088 178 321. It is important for you to consider the Product Disclosure Statement for the Credit Fund in deciding whether to invest, or to continue to invest, in the Credit Fund. You can read the PDS and the Target Market Determinations on our website or ask for a copy by calling us on 13 80 10.
La Trobe Financial Services Pty Limited ACN 006 479 527 Australian Credit Licence 392385.
To the extent that any statement in this article constitutes financial product advice, that advice is general advice only and has been prepared without considering your objectives, financial situation or needs. You should, before deciding to acquire or to continue to hold an interest in the La Trobe Australian Credit Fund, consider the appropriateness of the advice having regard to your objectives, financial situation or needs and obtain and consider the Product Disclosure Statement for the Fund.
© 2024 La Trobe Financial Services Pty Limited. All rights reserved. No portion of this may be reproduced, copied, or in any way reused without written permission from La Trobe Financial.