Getting the prime sub-prime balance right will yield well for Blackstone, the US money manager betting big on La Trobe Financial.
The 2019 annual report for the La Trobe Australian Credit Fund crossed our desk yesterday. John Marriott chair of the La Trobe Financial Asset Management Limited Compliance Committee wrote the intro.
"We remain committed to the proposition that a strong and positive corporate culture is the best way to ensure the highest standards of professional integrity," Marriott said.
"We are pleased to observe the strong and compliance-focused culture that prevails at La Trobe Financial. In particular, we note the emphasis on staff training and development that continues to underpin La Trobe Financial's activities."
Asset growth in the fund of 48 per cent is the metric Blackstone's guardians and strategists expect to read, but widely across the La Trobe group.
"$4 Billion AUM and growing" was the headline to the La Trobe release, which becomes $3.5 billion in the report from Chris Andrews Chief Investment Officer.
"We are particularly proud of the performance of the La Trobe Australian Credit Fund. Over financial year 2019, it returned an extraordinary $151,799,000 in monthly interest payments to our investors.
"Our flagship 12 Month Term Account delivered an average headline yield over the year of 5.20 per cent and won a record tenth consecutive "Best of the Best" award from Money magazine.
"More recently, we have launched our new 90 Day Notice Account to provide new income alternatives for investable cash."
Borrower numbers are steaming, at 85,000 up from 57,000, bringing Blackstone the risk ramp up it is seeking, in this and many corners of Australian finance.