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Ratings house 'recommends' non-bank

by Staff Reporter9 minute read
The Adviser

Staff Reporter

One of Australia’s non-bank lenders has been given the seal of approval from the ratings agency Lonsec.

Earlier this week, Lonsec awarded La Trobe Financial’s Mortgage Fund – Pooled Mortgages Option (“Fund”) a “Recommended” rating for advisors and investors.

“This is the first time that Lonsec has rated the Fund and caps off a tremendous 12 months,” La Trobe Financial’s head of funds management Chris Andrews said.


“Management feels quite vindicated about our business model, quality of asset origination and ongoing management capacities after this rigorous review process.”

“As a Funds Manager ‘you are what you eat,’ so if you have a diet composed of high LVR commercial development loans based in only one or two states then you will have to face up to the usual health consequences as an operator in producing such unnecessary risks for your investors.

“At La Trobe Financial we do not build FUM for FUM sake and as a specialist in credit assets have continual regard for whose money it is we are managing. We are very focused on our role to pay the money back at all times in full and we have been doing that for 60 years; we now have one of the longest track records of proven execution in this space,” Mr Andrews said.

The Fund’s Pooled Mortgages Option was established in 2002 as an adjunct to La Trobe’s existing and already successful business model for investors providing exposure to the credit asset class, through a pool of loans secured by a diversified Australia-wide portfolio of mortgages.

According to Mr Andrews, Lonsec recognised that the Fund is a “well diversified mortgage fund offering that substantially differs from other mortgage fund offerings”.

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