Sydney, 24 January 2022 – La Trobe Financial Asset Management Ltd’s Operational Due Diligence Rating Affirmed As ‘Superior’.
Foresight Analytics has reviewed and affirmed its Operational Due Diligence Rating (ODD Rating) of La Trobe Financial Asset Management Limited (LFAM) as ‘Superior.’ This rating reflects the ongoing investment of the La Trobe Financial group in its human resources, governance arrangements and risk and compliance practices, in addition to the ongoing financial backing from the Blackstone Group and a further strengthening in corporate financial performance despite the ongoing global pandemic.
A ‘SUPERIOR’ ODD Rating is the highest available rating from Foresight Analytics’ ODD Rating Scale; it reflects the superior capacity of an operating party to perform its operational role and assist the Fund in meeting financial obligations.
Foresight Analytics analyst, Natasha Quirk, said, “the affirmed ‘Superior’ ODD Rating is a positive reflection on the management of 7-key operational risk factors at La Trobe Financial, the resilience of the Fund throughout the pandemic and ongoing initiatives to deliver best of breed services to clients”.
She further added “The affirmation is underpinned by LFAM’s ability to rapidly recover funds under management to pre-COVID-19 levels and position the fund for future growth, whilst maintaining investment performance and preserving investor capital and redemption liquidity. There is an opportunity for further strengthening of the ODD Rating with planned and ongoing investments in the digitalisation and automation of various business functions, including treasury management and risk and compliance, and additional formalisation in board performance and effectiveness assessment processes”.
La Trobe Financial Asset Management Ltd – the Responsible Entity for The La Trobe Australian Credit Fund – is wholly owned by La Trobe Financial Pty Limited and forms part of the La Trobe Financial Group of companies. The La Trobe Financial Group’s key business as a credit specialist is to originate mortgages and offer investors (institutional and retail) an opportunity to invest in mortgages and other credit assets, including mortgage-backed securities via the Fund.
The research report is available from Foresight 360.
– – END – –
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
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.
Foresight’s fiduciary solutions include Diligence Services (Investment, Operational, ESG & Risk Diligence), Data Analytics and Asset Consulting. Foresight’s fund strategy solutions include Data Analytics for asset managers, Fund Strategy Benchmarking Solutions and Strategic Research.