Press Release – La Trobe Financial Asset Management’s Operational Due Diligence Rating reaffirmed as ‘Superior’
Sydney, 13th Feb 2025
Foresight Analytics & Ratings has reviewed and reaffirmed its Operational Due Diligence Rating (ODD Rating) of La Trobe Financial Asset Management Limited (LFAM) as ‘Superior’. This reflects the ongoing support of the parent company, La Trobe Financial Group across human resources, risk and governance oversight, robust profitable growth, operational resilience, and strategic diversification into US Private Credit offerings. The La Trobe Financial Group’s key business as a wealth manager and credit specialist is to originate loans and offer investors (institutional, wholesale and retail) an opportunity to invest in those loans secured by registered mortgages and other credit assets.
A ‘SUPERIOR’ ODD Rating is the highest available Foresight Analytics’ Rating; it reflects the superior capacity of an operating party to perform its operational role and assist the Fund in meeting its financial and investment obligations.
LFAM is wholly owned by La Trobe Financial Pty Limited and forms part of the La Trobe Financial Group of companies. On 31 May 2022, entities associated with Brookfield Asset Management (‘Brookfield’) acquired the La Trobe Financial Group from the former shareholders. The La Trobe Financial Group is now 100% owned by Brookfield, a leading global alternative asset manager with approximately US$925 billion of assets under management. Brookfield’s majority stake in Oaktree Capital, one of the largest players in global private debt markets, further strengthens LFAM’s position in alternative credit.
LFAM’s proven track record of capital preservation remains intact, with no investor suffering capital losses in its 35-year history of portfolio management, a record that extends to 72 years when including institutional mandates. This success is attributable to a combination of factors, including the experience and culture of its people to undertake their respective roles ethically and in line with documented processes and procedures.
LFAM has 4 internal directors (Chris Andrews (CEO), Chris Paton (CIO), Martin Barry and Rowan Donohoue) and a majority-external Independent Compliance Committee (John Marriot, Chairman and Gerard Parlevliet). Though aspects of LFAM’s operations are overseen by each of La Trobe Financials’ divisions, the retail/wholesale funds management operations reside within the Asset Management Division, led by Chris Paton, Chief Investment Officer (joined La Trobe Financial in 2017).
The broader LFG has a 540-strong team, with the Asset Management Division comprising around 80 employees. There have been 7 additions (4 net additions) over the last financial year, as the firm has been focused on building the necessary expertise and capabilities to support the growth of the business, including the introduction of the US Private Credit Fund.
Foresight Analytics analyst, Shruti Ghosh, said “The growth of La Trobe Financial Group has been driven by the trust of its expanding investor base. This success is further supported by robust and consistent governance, risk management, and compliance frameworks, ensuring the protection and growth of investor interests”.
She further added, “Looking ahead, we maintain a positive outlook on LFAM’s financial and operational performance. We are confident that the local management team possesses the expertise, alignment, and capacity needed to effectively execute the board’s strategic vision while delivering expected outcomes for investors”.
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About Foresight Analytics’ Operational Due Diligence Rating (ODD Rating)
An Operational Due Diligence Rating assesses the capacity of an operating entity, special-purpose vehicle, or asset (collectively “operating party”) to effectively undertake its defined role of managing the operational risks relating to a pool of financial or physical assets. The ability of an operating party to carry out its role, be it in a superior, adequate, or poor manner, ultimately will have a bearing on the performance of the pool of assets. The overall ODD Ratings assigned by Foresight Analytics is underpinned by 7 risk factors – Ownership, Management talent, Governance, Risk & Compliance, Asset & Data security, Systems & Technology and Financial agility.
The assessment covers operational responsibilities and oversight undertaken for a pool of assets retained by the owner, or alternatively a pool of assets that underlie a debt issue or managed fund. The assessment addresses how much the operating party enhances or potentially detracts from the ability of the asset pool to pay interest and principal on a specific security as and when due, or the fund’s ability to distribute income according to the Product Disclosure Statement (PDS). It should be noted that operational risks generally exist in addition to credit, market, and liquidity risks.
Foresight Analytics Operational Due Diligence Rating (ODD Rating) Scale & Definitions
Media Contact – Foresight Analytics
Shruti Ghosh
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About Foresight Analytics
Foresight Analytics, an independent Sydney based firm, provides investment diligence, data analytics, and advisory solutions to leading investment management companies, superannuation funds and wealth groups across the Asia Pacific. Foresight’s innovative, evidence-based approach blends both human and forensic insights to provide a range of analytical, predictive and market intelligence solutions to investors. Foresight Analytics was founded in 2015 by Jay Kumar, a former executive of Morningstar, Optimix Investment Management, ANZ Wealth & Private Bank and the Reserve Bank of Fiji.
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