La Trobe Financial

La Trobe Financial was established in 1952 in Australia and initially operated as a specialist residential lender and business partnership between Kel O’Mullane and Ray O’Neill. Attributed as one of the fastest growing permanent building societies in Victoria in the 1970s with a network of 9 branches and over 230 agents and AUM of $28million[3]. It was eventually de-mutualised after Ray O’Neill bought out his co-founding business partner in the early 1980s.

La Trobe Financial is a multi award winning wealth manager, dedicated to providing financial solutions for borrowers and investors whose financial needs are overlooked by traditional institutions.

La Trobe Financial specialise in originating, underwriting and managing granular assets being both traditional residential and commercial mortgage loans. La Trobe Financial tailor wealth management and real estate credit to clients who require personalised service from a dedicated and highly trained workforce.

La Trobe Financial uniquely fund these assets via institutional funding, a large retail credit fund, and a global capital markets bond program. La Trobe Financial's experience, platform and performance makes investing in residential and commercial mortgages accessible to all investors creating superior risk adjusted returns.

La Trobe Financial has built on the heritage of one of Australia's oldest wealth management enterprises. Since establishment in 1952, the business has scaled to be one of the largest Australian non-bank institutions currently managing A$11 billion with more than 380 staff. During that time La Trobe Financial has assisted over 150,000 individuals, and have cumulatively managed investment funds from wholesale and retail sources in excess of A$22.76 billion; this has been carried out without loss to any institutional or pooled retail investor.

La Trobe Financial currently review A$8 billion of asset investment opportunities annually. La Trobe Financial seek to work with institutional and retail investment partners on further mandates to fund strategic growth, and to maintain investment grade discipline.

The company operates through two core entities: La Trobe Financial Services an unlisted proprietary (private) company, holder of Australian Credit Licence "ACL" 392385 [4], responsible for group credit asset administration and servicing, third party outsourcing services, custody services, group insurance sales, and wholesale institutional funding mandates. The second core operational entity is La Trobe Financial Asset Management a public (unlisted) company and holder of Australian Financial Services Licence "AFSL" 222213[5], responsible for all retail investments in the La Trobe Australian Credit Fund and it's Wealth Management operation.

La Trobe Financial utilise over 3,000 independent finance brokers and 867 independent financial advisers as their third party product distribution across Australia, with full time Business Development Managers (40) and an adviser support team (15).

In 1994 in recognition of its range of products the Housing Industry Association (HIA) appointed La Trobe Financial as exclusive financier for its national display village for two years, and La Trobe Financial opened its service desk seven (7) days a week[6].

La Trobe Financial offers Australia's broadest and most diversified wealth management and mortgage credit product suite with a focus on the quality of assets acquired and managed. Assets being managed are Cash, Mortgage fixed interest Investments, and Bonds (residential mortgage backed securities). Current Assets Under Management are 3% cash, 70% mortgages and 27% bonds. The mortgage book is composed of (14% - super prime residential mortgages), (23% - prime mortgage), (49% - near prime commercial and residential) and (11% - specialist residential mortgages). Products cater for a wide range of borrower and private wealth management situations, the average group wide loan-to-valuation ration is a conservative 64.1%.

La Trobe Financial performs in line with the broader market peers and its average per-loan loss experience is less than its peer group. It is a function of their conservative asset underwriting and 80% LVR maxima. Many traditional bank customers moved to La Trobe Financial as a result[7].

While many other competitors have come and gone La Trobe Financial have seen off many new operators[8].

La Trobe Financial has perhaps the most diversified real estate credit funding program of all peer's operating in Australia incorporating:

• A$3.7 billion of term debt facilities from local and international financiers;
• a A$5 billion dollar Credit Fund featuring five investment account types including a 48 hour cash management account, a 90 day term account, a 12 Month Term Account, a Peer to Peer (P2P) investment option, and a 4 Year (Bond Investment) account. The retail Credit Fund is independently rated; and
• a complementary A$3.6 billion publicly rated capital markets programme issuing Residential Mortgage Backed Securities (RMBS).

La Trobe Financial first accessed debt capital markets in 2014 with the goal of broadening their funding capabilities with an RMBS programme as one component of the Group's overall $6bn annual term debt funding program.

La Trobe Financial continues to see growth from all its funding sources.

The business has consistently performed well and in recent years has accelerated growth through targeted initiatives such as TV advertising, increasing staff numbers and developing a direct to consumer (DTC) digital channel. La Trobe Financial expect operating conditions to be favourable for the medium term as regulatory pressures results in major banks withdrawing from certain niche lending sectors including wealth management which La Trobe Financial have a comparative advantage and specialise in.

In early 2007, La Trobe Financial employed over 120 staff and was originating around A$100m per month of residential and commercial mortgage business. The market for mortgage backed securities (RMBS) changed radically in July 2007, the start of the Credit Crunch. From this point onwards, risk aversion in the debt capital markets increased sharply, and the RMBS market effectively shut in early 2008. A large non-bank mortgage lender (RAMS) failed in August 2007, the first major casualty of the credit crunch in Australia. The business had been listed on the ASX just 8 weeks earlier at a market capitalisation of A$880m.[9]

The environment deteriorated again sharply in 2008 as the equity markets caught up with the scale of the turmoil in the structured credit markets, and started a major sell-off. Confidence in financial institutions of all types deteriorated throughout the year, and many banks struggled to fund themselves in the interbank markets, where borrowing rates rose sharply. Pressure built for financial institutions on multiple fronts, culminating in the failure of Lehman Brothers in September 2008. Governments in most developed countries implemented emergency support strategies designed to back-stop their struggling banks. In Australia, bank deposits were guaranteed[10] in October 2008 and (A$20bn) mortgage backed bond purchase programme was introduced by the government via the AOFM. Government strategies were virtually all based on supporting their various regulated banking systems however, and non-bank lenders were largely left to fend for themselves.

Most non-bank lenders radically curtailed their lending as a result, or stopped completely. La Trobe Financial continued their operations unblemished throughout this period and all investors and borrowers funding and investment redemption needs respectively were met without compromise.

On 22 December 2017, La Trobe Financial announced a strategic partnership with the sale of 80% of its operations to funds managed by Blackstone Group NYC[11]. La Trobe Financial remains 100% privately owned company, by two shareholders 80% Blackstone and 20% by interests associated with CEO Mr. Greg O'Neill.

La Trobe Financial is overseen and governed by a majority independent board of directors meeting formally each quarter to review business activities. The board has a diverse set of skills and experience relevant to the underlying business. The board have delegated specific operational authority to various committees which have carriage for setting policy for management.

Since 1952 operating institutional investment mandates sized between $100m to $800m each. In 1990 introduced Australia's first alternative verification loan for self employed called Lite-Doc[12]. In 2001 was appointed by the Australian Securities and Investments Commission ("ASIC") to take over another national operator.[13]

More than $22.76 billion has been successfully invested and managed on behalf of institutional and retail investors since the company commenced its operations. Institutional portfolios comprise long term wholesale mandates from all of Australia’s big four banks, most Australian regional banks, international banks and financial institutions without loss of mandated investor capital or interest since inception.

The group's Credit Fund accommodates both retail investors and select wholesale institutional investors; and operates under AFSL (222213) and the Corporations Act. The Credit Fund has over $4 billion (30 Sept 2019) of retail investments.[14]

The company has also received multiple domestic and international wealth management awards. The Credit Fund's 12 Month Term Account has been voted Australia’s Best Mortgage Fund by Money magazine for the last ten consecutive years (2019, 2018, 2017, 2016, 2015, 2014, 2013, 2012, 2011, 2010)[15]

During 2014, 2015, 2016, 2017, 2018 and 2019 La Trobe Financial received five International Finance Awards (London based) for Best Investment Management Company - Australia (5 consecutive years).[16], Best Mortgage Fund - Australasia and Best Wealth Management Company and Best Non Bank of the Year (3 consecutive years). [17][18]

Awarded six International Alternate Investment Review (IAIR) Global Funds Management Awards in 2013, 2014, 2015, 2016, 2017, 2018 and 2019 presented in Hong Kong for Best Wealth Management Company of the Year - Asia Pacific and Best Credit Specialist.[19]

In 2017, La Trobe Financial won Mortgage Professional Australia's (MPA) Magazine's Non-Bank of the Year.[20]

Winner 2011 Victorian Innovation in Funds Management Award – Awarded at the Melbourne Financial Services Symposium,[21] and an honourable mention in 2015 for innovation with their P2C (Parent-to-child) first home owner loan product.

Australia’s only 4 1/4 star-rated mortgage fund – SQM Research[22]

Lipper Leaders rated '5' for 12 Month Term Account Total Return, Consistent Returns and Preservation[23]

Rated "Very Strong" by Australia Ratings for overall "continued focus to prudently manage the Fund and foster its growth and performance to current levels, whilst preserving investor capital."[24]

Chosen in 2015 as one of fifteen (15) firms across Australia by AUSTRADE, the Australian Federal Government trade promotion body to promote Free Trade Agreements across Asia Pacific [1]

In 2018 Australian Mortgage Awards Finalist: Non-Bank of the Year[25]

In 2019, La Trobe Financial has won SMSF Adviser's Award for SMSF Loan of the Year. La Trobe Financial was also shortlisted for Employer of the Year by the Women in Financial Services Awards published by Momentum Media.

• Kelvin David O’Mullane 1952–1972 (20 years)
• Raymond Kevin O’Neill 1972–1997 (25 years)
• Gregory Kevin O’Neill OAM 1997-current (22 years)

• Mr Kelvin O'Mullane 1952–1961 (9 years)
• Mr Donald Cooper OA 1961–1972 (11 years)
• Mr Pat O'Brien 1972–1980 (8 years)
• Mr John Barton 1980–1984 (4 years)
• Mr John Dack DFC 1984–1986 (2 years)
• Mr Bertram Wilson 1986–1997 (11 years)
• Mr Raymond O'Neill 1997–2007 (10 years)
• Mr Perce Cooper 2007–2010 (3 years)
• Mr David Bird 2010–2016 (7 years)
• Mr John Marriott 2016-current (3 years)

• La Trobe Financial