La Trobe Financial Capital Markets Trust 2023-1 Announces June 2026 Portfolio Balances and Interest Distributions

Overview of La Trobe Financial's Securitisation Platform and Trust Structure

La Trobe Financial Capital Markets Trust 2023-1 functions as a securitisation vehicle designed to finance residential mortgages and other lending products originated by La Trobe Financial Group. Officially closed on 12 April 2023, the trust acts as a capital markets funding source for the lender's mortgage portfolio. It issues multiple note classes to capital markets investors, secured by a pool of residential mortgage assets. This securitisation strategy enables the lender to diversify funding sources and manage capital positions while delivering structured returns to investors based on mortgage collection and repayment performance.

The trust's governance includes appointed officers overseeing senior financial management, treasury operations, and portfolio funding administration. The trust manager continuously monitors note performance, collection activities, and regulatory compliance across all investor classes. Distributions are made on a scheduled basis following collection periods, with the latest determination summary covering the month ended 30 June 2026. The securitisation operates under both Australian and European Union regulatory frameworks, highlighting the cross-border nature of capital markets funding for Australian mortgage lenders.

Invested Balance Changes and Repayment Activity in June 2026

For the collection period ending 30 June 2026, the trust recorded total repayments of AUD 5.996 million across all note classes. The opening invested balance of AUD 269.14 million decreased to a closing balance of AUD 263.15 million after these scheduled repayments. The largest note class, Class A1L, saw repayments of AUD 3.39 million, reducing its invested balance from AUD 152.88 million to AUD 149.49 million. Class B notes, the second-largest class, had repayments of AUD 1.07 million, lowering the invested balance from AUD 48.08 million to AUD 47.01 million.

Repayment activity in smaller note classes indicated steady mortgage pool performance. Class A2 notes repaid AUD 593,000, while Classes C, D, and E recorded repayments of AUD 356,000, AUD 247,000, and AUD 339,000 respectively. Equity classes maintained their original balances, with Equity 1 and Equity 2 notes remaining at AUD 7.54 million and AUD 2.47 million respectively, reflecting full retention by the trust manager in line with EU risk retention rules. The orderly repayment pattern across senior and mezzanine notes reflects typical amortisation without signs of stressed redemptions or acceleration.

Interest Rate Context and Investor Coupon Payments

The BBSW benchmark rate for the collection period was 4.30% as of 15 June 2026, impacting the trust's funding cost environment. Interest payments were calculated and distributed based on coupon rates ranging from 5.55% for Class A1S notes to 8.80% for Class D notes. This tiered coupon structure aligns with the securitisation's subordination hierarchy, where senior notes have lower rates due to enhanced credit support and distribution priority, and subordinated classes carry higher coupons to compensate for increased risk.

Total interest distributions for the period from 15 June to 14 July 2026 amounted to AUD 1.63 million, paid on 14 July 2026. Class A1L notes, the largest senior class, received AUD 735,000 in interest, followed by Class B notes with AUD 294,000. Smaller mezzanine classes received proportional payments ranging from AUD 148,000 for Class A2 notes to AUD 78,000 for Class D notes. No unpaid interest was recorded during the period, confirming all scheduled distributions were met fully without deferrals or shortfalls.

Credit Support and Bond Factor Performance Indicators

The trust maintains varying credit support levels across note classes to protect senior investors while exposing subordinated classes to portfolio performance and excess spread. Class A1L notes preserved original credit support of 23.5% and current support of 43.5%, indicating increased protection as the pool ages. Class A2 notes held original credit support of 14.5%, with current support rising to 33.6%, showing similar improvement in senior tranches.

Bond invested factors, representing the proportion of original principal outstanding, showed steady performance. Classes A1L and A2 maintained factors of 29.0%, indicating about 71% repayment since origination. Classes B, C, and D each had factors of 61.0%, reflecting slower amortisation typical for subordinated tranches. Class E showed a factor of 37.9%. These figures suggest the mortgage pool is amortising as expected, with no signs of abnormal acceleration or delinquency-driven prepayments indicating distress.

Regulatory Adherence and EU Risk Retention Compliance

La Trobe Financial Capital Markets Trust 2023-1 complies with the EU Securitisation Regulation, which requires originators and sponsors to retain meaningful economic exposure to securitised assets. The trust manager confirmed compliance with Article 6(1), mandating retention of at least 5% of the closing invested balance. This ensures the sponsor maintains capital at risk alongside external investors, protecting investor interests.

With a closing invested balance of AUD 263.15 million, the 5% retention threshold is approximately AUD 13.16 million. The trust manager’s retention through Equity 1 and Equity 2 notes totals AUD 10.01 million, exceeding the minimum regulatory requirement. This over-retention reflects management’s commitment to aligning with investor interests and provides an additional safeguard against portfolio deterioration. The trust’s compliance confirmation indicates effective regulatory oversight with no breaches or deviations from securitisation standards.

Status of Class A1S and Class F Notes and Portfolio Positioning

Class A1S and Class F notes reported zero closing balances as of 30 June 2026, having been fully redeemed in prior periods. Class A1S notes, carrying a 5.55% coupon, have completed amortisation and no longer form part of the active capital structure. Similarly, Class F notes recorded zero balances throughout the period. These retired tranches represent earlier securitisation portions that have naturally wound down as mortgages were repaid and principal returned.

The retirement of these senior classes signals the securitisation’s progression toward full amortisation. As senior tranches are fully redeemed, junior classes absorb portfolio performance variations and excess spread. The presence of retired notes indicates sufficient duration for early-maturing tranches to complete their terms, a typical feature of long-term mortgage-backed securities. Active classes including A1L, A2, B, C, D, E, and Equity classes continue to manage collections and maintain the trust’s capital structure.

Residual Income Distribution and Trust Financials

After fulfilling all scheduled interest payments to note classes, the trust distributed AUD 265,596 to the residual income unitholder during the June 2026 collection period. This unitholder represents the equity sponsor’s return, receiving distributions only after senior and mezzanine payments and required reserves are met. This amount reflects excess spread generated by the mortgage portfolio after costs and allocations.

The residual distribution indicates the mortgage pool generated income above required payments, demonstrating healthy portfolio performance without significant losses or delinquency-related reserve adjustments. Relative to the total invested balance of AUD 263.15 million, the residual distribution suggests excess spread margins remain within expected ranges. This confirms the underlying mortgages are performing as projected, supporting all payment obligations and providing modest equity returns.

Trust Management Contacts and Governance Structure

La Trobe Financial Capital Markets Trust 2023-1 is managed by senior finance and treasury professionals responsible for portfolio management, investor relations, and regulatory compliance. Martin Barry serves as Senior Vice President and Chief Financial Officer, overseeing financial reporting. Paul Brown is Director and Treasurer, managing treasury operations and distributions. Kit Wilson, Executive General Manager and Head of Group Portfolio Funding, directs the broader funding strategy across La Trobe Financial’s securitisation programs.

Investors and market participants can contact senior management directly: Martin Barry at +61 478 184 981 or [email protected]; Paul Brown at +61 408 566 523 or [email protected]; Kit Wilson at +61 401 571 539 or [email protected]. This accessible management framework underlines La Trobe Financial’s commitment to transparent communication and regular disclosure of trust performance and determination summaries.

Investor Outlook and Monitoring Recommendations

Investors in La Trobe Financial Capital Markets Trust 2023-1 should monitor quarterly determination summaries for consistent mortgage pool performance, stable interest distributions, and orderly amortisation. Key indicators include bond invested factor trends across note classes, which reveal amortisation progress or prepayment acceleration. Any declines in credit support or unexpected charge-offs should prompt review of portfolio credit quality and potential stress signals.

The interest rate environment remains a critical factor influencing refinancing and prepayment behavior. With the BBSW rate at 4.30% during June 2026, borrowers might consider refinancing if lower rates become available, potentially accelerating prepayments. Conversely, rising rates could slow prepayment activity. Investors should also track regulatory changes affecting EU securitisation rules, as amendments to risk retention or reporting requirements may impact the trust’s operations. The forthcoming determination summary will provide updated insights into these trends and portfolio developments requiring investor attention.