La Trobe Financial
About La Trobe Financial
Established in 1952 and with A$14 billion of assets under management (AUM), La Trobe Financial is one of Australia’s leading credit asset managers. La Trobe Financial is a proven and trusted investment partner for institutional and retail investors. It operates Australia’s largest retail credit fund, with A$7.6 billion in AUM and more than 80,000 investors.
La Trobe Financial is committed to assisting investors and under-served borrowers. It is a trusted steward of capital for many of the world’s largest credit investors. The business specialises in the origination and management of granular portfolios of residential and commercial mortgages.
Ownership and capital structure
La Trobe Financial is owned by Brookfield Asset Management, which has US$725 billion AUM. The business is overseen and governed by a highly experienced independent board of directors and maintains a strong capital structure.
La Trobe Financial has one of the most diversified funding programmes of all nonbanks operating in Australia, comprising a combination of bank term investment mandates, warehouses, the retail credit fund and public RMBS funding. The business has capacity to fund more than 12 months worth of originations at any time.
Asset performance
La Trobe Financial targets complex prime mortgage assets that display a better than average loss experience versus peers. This is a function of conservative underwriting and LVR maxima of 80%.
Funding strategy
La Trobe Financial has one of the most diversified funding programmes in its segment. This comprises:
| SIZE OF LOAN BOOK | A$14BN |
| MAKEUP OF LOAN BOOK | SUPER-PRIME MORTGAGES: 14% PRIME MORTGAGES: 25% NEAR-PRIME MORTGAGES (LVR <70%): 23% NEAR-PRIME MORTGAGES (LVR >70%): 27% SPECIALIST MORTAGES: 8% CASH AND LIQUID ASSETS: 3% |
| GEOGRAPHIC DISTRIBUTION OF LOAN BOOK | AUSTRALIA: 100% |
| OUTSTANDING DEBT ISSUANCE | RMBS: A$4BN INSTITUTIONAL LIMITS: A$4.1BN RETAIL CREDIT FUND: A$7.6BN |
- A$4.1 billion of term debt mandates and facilities from local and international banks and finance houses.
- A retail credit fund worth A$7.6 billion, which features seven investment accounts and incorporates Australia’s largest peerto-peer investment offering.
- About A$4 billion of complementary publicly rated RMBS transactions.
The business is experiencing strong growth in each segment and expects this to continue. La Trobe Financial has a deep commitment to RMBS markets and will continue to be a regular issuer.
Business performance
La Trobe Financial continues to experience growing demand for its offerings from borrowers and investors. The consistency of portfolio performance through the COVID-19 pandemic in 2020-21 has confirmed the underlying robustness of its underwriting and asset selection processes.
FOR FURTHER INFORMATION PLEASE CONTACT:
Martin Barry
Chief Financial Officer
+61 2 8046 1502
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Richard Parry
Director of Finance
+61 3 8610 2847
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Paul Brown
Treasurer
+61 3 8610 2397
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Michelle Dai
Head of Corporate
+61 3 8610 2820
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nonbank Yearbook 2023
KangaNews's eighth annual guide to the business and funding trends in Australia's nonbank financial-institution sector.
