Benefits of investing in the La Trobe 12 Month Term Account

• Capital stability

• Strong and consistent returns with low volatility

• Return outperformance relative to risk, peers and benchmark

• Exposure to strong underlying asset class

• Superior portfolio diversification

• Flawless liquidity and capital return history

This product offers investors:

1. Consistent returns at a premium to comparable investments
2. Capital stability
3. Exposure to the property credit asset class

About the Fund

The 12 Month Term Account offers you a variable rate of return from a pool of loans secured by registered first mortgages chosen and managed by La Trobe Financial. Investors' monies are pooled' and invested collectively, meaning that your investment is secured by the entire pool of mortgages in the proportion to which your investment bears to the total investment pool in the Account. No individual Investor has a specific entitlement to any individual mortgage. Loans which form part of the 12 Month Term Account are subject to the credit analysis criteria discussed in Section 8 in this PDS.

The rates of return are not guaranteed and are determined by future revenue of the pool of assets that comprise the 12 Month Term Account and may be lower than expected.

Investment objective and strategy

The 12 Month Term Account aims to provide Investors with a reasonably stable and predictable income based on a monthly variable rate of return, investing in a wide range of loans secured by first mortgages in a range of industry sectors, with geographic diversification across Australia. Choosing the 12 Month Term Account means you enjoy substantial diversification of investment in loans secured by first mortgages.

Significant features

• all funds invested in cash or loans secured by first mortgages in Australia

• 12 month term investment

• no entry or exit fees (if investment held to maturity)

• personal service from our investment specialists

• the security of a manager with over 65 years' experience

• minimum investment $10

How we invest your money

To optimise performance in a range of market conditions, the Fund's portfolio is diversified at a number of levels, including:

• number of loans;

• size of loans;

• loan sector e.g. residential, commercial etc;

• geographic location; and

• interest rate type and level.

Investors in the Classic 48 hour Account and 12 Month Term Account automatically receive the benefits of this diversification program. Their portfolios are also significantly assisted by the Fund's co-investment model', which means that loans can be funded by more than one of the Fund's Investment Accounts. This decreases the average size of each Account's investment and increases the total number of investments in each Account. The composition of the portfolios in each Account is published monthly at latrobefinancial.com.

Asset allocation

The 12 Month Term Account is invested almost entirely in loans secured by first mortgages, with the exception of small cash and term deposit holdings held to meet cash requirements. The 12 Month Term Account aims to hold mortgages in a range of security types, with geographic diversification across Australia.

We aim to achieve the benchmark allocation objectives over the long term, but this will vary on a day-to-day basis, depending on market conditions.