La Trobe Financial aims for all-weather success

La Trobe Financial is aiming to achieve “all-weather” status for its new US Private Credit product – ensuring it is impervious to the inevitable vagaries of global markets and US domestic politics.

La Trobe Financial’s objective is to ensure that no matter who occupies the White House, its US Private Credit product will continue to perform for its Australian wholesale and retail investors.

And the secret to that success is the fact that there are some things which transcend politics; things as mundane as having to take your sick dog to the vet.

“When we look at portfolio construction in both our foundational asset class of Australian real estate private credit, as well as US Private Credit, we’re looking to build portfolios that perform across all market and economic cycles,” La Trobe Financial’s Chief Investment Officer, Chris Paton said. “Prioritising segments of the market which are not cyclical in nature.”

“From a geopolitical perspective it’s [identifying] an essential service that needs to be provided irrespective of who is in the White House,” he said.

“We might provide a loan to a veterinarian services business in the US middle market. It doesn’t matter whether its Donald Trump or Kamala Harris in the White House – if my dog is sick I am going to take it to the vet to get treatment.  As a business segment, its non-cyclical.  It will continue to generate re-occurring revenue streams irrespective of the geopolitical landscape”

“We build portfolios to perform over all markets and economic cycles,” Paton said.

Asked what success will look like, Paton said that from La Trobe Finanical’s perspective it is focussed on delivering a strong risk-adjusted return for investors irrespective of what is happening in markets and the global economy.

“…we want to provide consistency of outcome – a low volatility investment – for our investors.  And ultimately, a US Private Credit product which grows to become a part of more and more investors’ portfolios as its recognition grows in the market.”

“Pleasingly, we are seeing our inflow momentum continue to grow.  We would like to see it recognised, from a flows perspective, as a top 50 fund across the country.”

“Given our distribution footprint – over 100,000* investors and 3,800 adviser partners – we think it’s eminently achievable.

Paton says that adviser and investor education is fundamental to La Trobe Financial’s approach – something which it initiated early on in the process with the company having worked with advisers before the product was even brought to market with segment testing to gauge adviser understanding.

“We started with a much smaller segment test of the asset class and then commenced the education process. We then worked towards the first investment with wholesale investors last December.

“We undertook a product roadshow together with Morgan Stanley where we travelled around the country and spoke to hundreds of financial advisers, educating them on the asset class and product. We covered the particular part of the private credit market we’re playing in, the features,  what it is delivering for investors, and how it could be part of investor portfolios,” Paton said

“We then provided education sessions with some of the Morgan Stanley investment committee who joined us from the US. We repeated the process as we were building towards the launch of the retail class in June, with another product roadshow.”

“From here we will be rolling out  a quarterly portfolio update to provide investors and advisers the opportunity to deepen their understanding of the product , how the portfolio is comprised and  some of the names within that portfolio. That’s important because we want to be transparent about  the portfolio make-up  and how it is continuing to evolve over time.”

*Total investors is calculated by adding all individual & joint investors (which includes some investors with a current zero balance in their account) to reasonable estimates of investors investing via platform, trusts or SMSFs.

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La Trobe Financial Asset Management Limited ACN 007 332 363 Australian Financial Services Licence No. 222213 is the responsible entity of the La Trobe US Private Credit Fund ARSN 677 174 382. It is important that you consider the relevant Product Disclosure Statement (PDS) before deciding whether to invest or continue to invest in the fund. The PDS and Target Market Determination are available on our website

Any financial product advice is general only and has been prepared without considering your objectives, financial situation or needs. You should, before investing or continuing to invest in the La Trobe Us Private Credit Fund, consider the appropriateness of the advice having regard to your objectives, financial situation or needs and consider the Product Disclosure Statement for the fund.