Non-bank specialist credit manager La Trobe Financial has released a new product into the market designed to enhance yield-driven returns for investors in the current low interest rate environment.
The La Trobe 90 Day Notice Account aims to generate a yearly return of 3.1 per cent via a portfolio of underlying assets consisting of short to medium-duration investments.
Income from the fund will be distributed on a monthly basis and a 90-day notice period has been included with regard to investor redemptions.
“The new 90 Day Notice Account draws on the same investment process and disciplines that underpin the rest of our investment offerings. By investing in carefully selected, highly diversified portfolios of low LVR (loan-to-value ratios), mortgage-secured loans, history shows that we can deliver highly robust and resilient portfolios that deliver capital stability and stable monthly income,” La Trobe Financial chief investment officer Chris Andrews said.
“Our 67-year track record across many business cycles has taught us that a return of capital is just as critical as a return on capital; we have taken that lesson very seriously in designing this 90 Day Term Account.
“As we have stated repeatedly over the last five years, we believe that this current low interest rate environment will persist for years to come and it is critical that investors take steps to identify alternative income sources.”