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. For April, we provide a portfolio update, discuss how our conservative approach to portfolio construction has further strengthened our position as well as share our current thinking on the property market and economy.
Business & Portfolio Update: Chris Paton, Chief Investment Officer
This month, we discuss how the Credit Fund demonstrates yet again its resilience in the face of volatility in recent market events.
- Recent market volatility has been met with our ongoing conservative portfolio positioning, delivering performance across the cycle.
- The Credit Fund grew from $8.9 billion at the end of December 2022 to $9.3 billion at the end of March 2023, with assets under management growing month on month.
- Group lending volumes increased across the March quarter providing a very healthy pipeline of high-quality loan assets.
Economic Update: Michael Watson, Head of Distribution
This month, our Economic Update focuses on the recent RBA decision in April to pause interest rate hikes and unpicks its latest monthly statement:
- The rise in the Official Cash Rate from 0.1% in May 2022 to 3.6% in March 2023 was the steepest and fastest on record.
- Economic growth will continue to slow – but not to negative levels and inflation is now considered to be at, or past, peak.
- RBA paused its rate-hiking cycle in April 2023 after ten consecutive meetings, adopting ‘wait and see’ approach.
Property Market Update: Lilian Chin, Director of Client Partnerships
Our review of the residential property market demonstrates how the decline in prices has reversed, with property prices trending positive in March:
- Property prices in March increased across the country, led by a Sydney market that jumped upwards by 1.4%, with Melbourne, broadly stable at +0.6%.
- Rental vacancies have hit a near-record low and rental yields are growing by over 10% year-on-year, improving the attractiveness of property as an investment and increasing investor demand.
- Bank and non-bank arrears are universally around their lowest recorded levels with current refinancing activity near its highest recorded level.
La Trobe Financial’s range of low volatility, variable monthly income products continues to perform. We look forward to bringing you more good news in the months to come.
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.au, or ask for a copy by calling us on 1800 818 818.
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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