Miao & Co

Investment rates increasing, yet again

After spending years talking about the ‘hunt for yield’, 2022 certainly turned the economic narrative on its head. Central banks increased interest rates and yield re-entered the marketplace. The challenge for investors is to align portfolios with managers and products that can harness the improving yield environment while not succumbing to seemingly ever-present volatility.

At La Trobe Financial we harness the best attributes of our chosen asset class to deliver low-volatility income to investors. And, for the eighth consecutive month, we are again pleased to announce increases to the investment rates of our portfolio accounts. Headlined by our flagship 12 Month Term Account, which will be delivering a variable rate of 5.65%* p.a effective from 1 January 2023, investors will celebrate the New Year with a range of products within the Credit Fund enjoying increasing distribution rates as follows:

The eight increases to our portfolio accounts throughout 2022 represent inflation responsive income which has benefited each of our 88,000 investors. Meeting the needs of investors with downside protection and low-volatility income remains our central objective, and one we are pleased to have delivered across the 32 year history of the Credit Fund.

We look forward to the meeting head-on the challenges and opportunities that 2023 will undoubtedly provide. With more good news to come in the year ahead, we are thrilled for you continuing your investment journey with La Trobe Financial.

*The rates of return on your investment will be effective from 1 January 2023. The rates of return are reviewed and determined monthly and may increase or decrease each month. The rate of return applicable 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 investment. Past performance is not a reliable indicator of future performance.

Withdrawal rights are subject to liquidity and may be delayed or suspended.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 the Target Market Determinations on our website or ask for a copy by calling us on 13 80 10.

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.