La Trobe Financial CEO addresses mounting pressure on private credit

La Trobe Financial CEO Chris Andrews says managers in different asset classes “lose sight of disciplines” and make “poor quality investments” as investors are now cautious over some credit funds freezing withdrawals. “Managers in whatever asset class from time to time lose sight of disciplines. They do poor quality investments and of course it's investors who pay the price,” Mr Andrews told News24 Business Editor Ross Greenwood. “We have portfolios where they are insufficiently diversified, where the managers really are depending on one or two borrowers to keep making their monthly repayments so that investors can get their returns. “That’s always a recipe for disaster.” In partnership with La Trobe Financial