La Trobe releases 2 investment products

La Trobe Financial has announced the release of two new investment products within its La Trobe Australian Credit Fund range, stating that it has come at a time when investor demand for yield has remained strong.

The $12.5 billion Blackstone-owned non-bank lender has released the six-month notice account with a current variable rate of 2.50 per cent per annum after fees (reviewed monthly), with funds generally accessible within 180 days’ notice.

The account invests in mortgage assets, Australian cash and other credit instruments.

La Trobe Financial has also released the two-year account, which offers a diversified portfolio of registered first mortgage loans with low volatility over the medium to long-term investment horizon. The account is aimed at providing investors with a reasonably stable and predicted income based on a monthly variable rate of return.

It would invest in a range of loans secured by first mortgages in different industry sectors, with geographic diversification across Australia.

The account provides a premium yield to correspond with the tenor of investment, launching with a variable rate of 4.50 per cent per annum (determined monthly).

According to the non-bank lender, the new products – which were launched on 23 July 2021 – have been released during a period when investor demand for yield has remained strong.

The products’ launch has come as the credit fund has surpassed $6.1 billion in assets under management.

La Trobe Financial senior vice president and chief investment officer Chris Andrews commented that the launch has sent a “powerful” message to the market that the lender has prioritised the investor.

He said: “The La Trobe Australian Credit Fund strategies continue to deliver a fundamental part of asset allocation for income investors both domestically and internationally. All investors continue to benefit from the disciplined investment process, built over seven decades of unbroken experience as asset class specialists.”

Deputy chief investment officer of the credit fund Troy Stratton said: “The expansion of our investment product range reflects our commitment to our investment strategy within the property credit asset class.

“Additionally, it demonstrates our ability to supply low volatility income investments to our investors, both domestically and around the globe.”

Head of distribution APAC Michael Watson said that investors and financial advisers can access the products, with business development managers and private wealth management team available to answer queries.

He concluded: “We are excited about the addition of two new products into our existing suite of products. The Credit Fund continues to offer a genuine range of income products to suit all investors.”

[Related: Non-bank prices second $1.25bn RMBS]