La Trobe Financial has launched a new 90-day notice account, which offers short-medium duration investments plus access to their funds with 90 days’ notice.
The Blackstone Portfolio Company group will offer the investments at an initial rate of 3.10 per cent per annum paid monthly, providing investors with a source of monthly income.
La Trobe Finacial chief investment officer Chris Andrews said that this product was built for investors struggling to generate income in the low rate environment.
“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, mortgage-secured loans, history shows that we can deliver highly robust and resilient portfolios that deliver capital-stability and stable monthly income,” he said.
Mr Andrews said that La Trobe believed this environment would continue for years to come and it was a solution for investors who had their savings rate plunge as they entered retirement.
“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,” he said.
La Trobe Financial chief executive Greg O’Neil OAM said the group had $8 billion in assets under management due to them offering genuine alternatives, and this product was another example of that.
“Our entire staff has a deep conviction in our asset class, and we are delighted to produce this timely product addition to further benefit investors in our credit fund,” he said.
