Each month, La Trobe Financial produces a series of short videos to keep you updated on our business, our portfolios and what we are seeing in the economy. It’s our way of cutting through the noise of the market to provide some concise, clear thinking. This month, we provide a business update, reinforce the importance of strong investment fundamentals, plus an overview of our current thinking on the economy, including property credit and prices.
Business & Portfolio Update: Chris Paton, Chief Investment Officer
In this month’s Corporate & Portfolio Update, we outline how La Trobe Financial’s unwavering commitment to our strong investment fundamentals is the catalyst for our Credit Fund delivering low volatility, inflation responsive variable monthly income for the benefit of investors:
- Investors will enjoy another increase to their investment rates from 1 April 2023.
- Recent market volatility has been met with our conservative positioning with continued performance across the economic cycle.
- Low and controlled arrears observation across our portfolios show an asset base in great health.
Economic Update: Michael Watson, Head of Distribution
This month, our Economic Update shows that economic tailwinds still outweigh economic headwinds as Australia’s economic resilience following COVID continues:
- Inflation remains stubbornly high however a range of high-level indicators suggest inflation is now around its peak.
- Positive – but subdued – economic growth remains forecast for Australia through 2023 and 2024.
- After ten monthly increases from the RBA we are now at or very near the peak Official Cash Rate.
Property Market Update: Tanya Hoshek, National Distribution Manager
This month, our review of the residential property market shows that while prices are falling, the market is searching for the bottom:
- National surge post-COVID of 28.6% in house prices have since fallen 9.1% so gains still exceed losses.
- Across capital cities the monthly observations are stabilising. Sydney residential property prices actually rose by a slender 0.3% in February.
- With active buyers, limited stock and a rebounding population, the rates of price declines have reversed in recent months.
As investors continue to seek genuine downside protection, our range of low volatility, variable monthly income portfolio products continue to perform. We look forward to bringing you more good news in the months to come.
*The rates of return on your investment will be effective from 1 April 2023. The rates of return are reviewed and determined monthly and may increase or decrease each month. The applicable distribution for any given month is paid at the start of the following month. The rates of return are not guaranteed and are determined by the future revenue of the Credit Fund and may be lower than expected.
An investment in the Credit Fund is not a bank deposit, and investors risk losing some or all of their principal investments. Past performance is not a reliable indicator of future performance. Withdrawal rights are subject to liquidity and may be delayed or suspended. Visit our website for further information.
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 Target Market Determinations on our website www.latrobefinancial.com, or ask for a copy by calling us on 1800 818 818.
#We will make every endeavour to release your funds 2 business days for the Classic Notice Account, 90 days for the 90 Day Notice Account and 180 days for the 6 Month Notice Account, after receiving your redemption request. We however have 12 months under the Fund’s Constitution to honour that request. In determining whether to honour your redemption request within 2 business days for the Classic Notice Account, 90 days for the 90 Day Notice Account or 180 days for the 6 Month Notice Account we have to have regard to the Fund’s cash position and the best interests of all investors. There is a risk that a redemption request will not be honoured within 2 business days, 90 days or 180 days. However, there has never been a case in the history of the Fund when we have not honoured a redemption request on time due to a lack of liquidity.
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La Trobe Financial Services Pty Limited ACN 006 479 527 Australian Credit Licence 392385.
To the extent that any statement in this email 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.
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