GCI News & insights GCIT News

19 Feb 2021

Gryphon Insights - GCI's NTA

In this video, Emmanuel Tumini from Gryphon provides some understanding on what GCI's NTA is and how it is arrived at.

15 Feb 2021

GCI Investment Update January 2021

In December 2020, S&P released a research report “An Overview of Australia’s Housing Market and Residential Mortgage-Backed Securities”. S&P concluded that the RMBS sector has been a strong performer globally, evidenced by low arrears and losses. Higher unemployment in the wake of COVID-19 is yet to have any meaningful effect on arrears as both lower interest rates and boosts to household income have helped to keep arrears low. While arrears are likely to rise in the months ahead, it would be off a low level.

19 Jan 2021

GCI Investment Update December 2020

We don’t need to tell you what an extraordinary year 2020 has turned out to be. Bushfires that started in 2019 were still raging into the first quarter of 2020 and as they were finally extinguished, COVID-19 took the whole world by surprise, rapidly spreading across the globe and testing healthcare systems to their limits. COVID-19 also shook the foundations of national economies but no less unprecedented were the powerful responses of national governments in trying to mitigate the impact of the virus on financial markets and consumers. In this investment update, Gryphon reviews the year that was 2020.

18 Jan 2021

Gryphon Insights - Diversification

When investing for income, diversification is very important. In this video, Gryphon co-founder and portfolio manager Steven Fleming discusses how GCI achieves diversification.

18 Jan 2021

Gryphon Insights - GCI Performance Through a Crisis

In this video, Gryphon co-founder and portfolio manager Steven Fleming discusses how GCI performed during the COVID-19 crisis.

18 Jan 2021

Gryphon Insights - Managing Through a Crisis

In this video, Gryphon co-founder and portfolio manager Steven Fleming discusses how Gryphon constructed and managed GCI's portfolio through the COVID-19 crisis.

18 Jan 2021

Gryphon Insights - Meeting Target Returns in a Low Interest Rate Environment

Gryphon co-founder and portfolio manager Steven Fleming discusses how GCI is able to meet its target rate of return in a low interest rate environment.

18 Jan 2021

Gryphon Insights - Mortgage Market Outlook November 2020

The COVID-19 pandemic has had a significant impact on the Australian economy, including creating uncertainty in the housing market. In this video, Gryphon co-founder and portfolio manager Ashley Burtenshaw provides Gryphon's outlook on the Australian mortgage market over the short to near term.

14 Dec 2020

GCI Investment Update November 2020

After a bumper month for new issues in October, as expected November returned to some normality with only two RMBS transactions issued; a Non-conforming RMBS and an RMBS issued where the underlying home loans are to non-resident borrowers. Due to a combination of GCI portfolio optimisation, credit and relative value considerations, the Gryphon Capital Investment Committee elected not to participate in these transactions.

27 Nov 2020

How Gryphon invested during a crisis; video market update

In our latest video market update Gryphon Capital co-founders and portfolio managers, Steven Fleming and Ashley Burtenshaw, discuss how the Gryphon team have successfully managed GCI’s asset allocation to date in 2020. Ash also discusses Gryphon’s outlook for the mortgage market and Steve elaborates on the powerful and important benefits of diversification when investing for income with capital preservation as a primary objective.

We also answer one of our most frequently asked questions: “If home loan interest rates are around 2.5% and GCI invests in bonds that are backed by home loans, how do Gryphon achieve (and indeed exceed) GCI’s target return of RBA cash + 3.50%”?

Please do watch the Gryphon market update. We really hope it is informative and, as always, welcome all feedback and any further questions.

Kind Regards

Steve Fleming & Ash Burtenshaw

19 Nov 2020

GCI Investment Update October 2020

In early November, CoreLogic released its Hedonic Home Value Index report for October showing an increase in national dwelling values as well as a broad-based lift in home values for each capital city excluding Melbourne. The investment committee has been leaning towards a constructive outlook on the housing market and the CoreLogic data only reinforces this bias. Stability in the housing market is great news for the 90 or so RMBS bonds in the GCI portfolio as all the RMBS are secured on Australian dwellings.

14 Oct 2020

GCI Investment Update September 2020

Good news from a credit perspective, we have seen the number of COVID affected loans in the GCI portfolio decline substantially. Since the peak, approximately 44% of the COVID impacted loans have cured, meaning borrowers have re-commenced their loan repayments. This dramatic improvement is at least partially explained by the fact that many borrowers originally deferred payments “just in case” as noted by the RBA in their October 2020 Financial Stability Review.

18 Sep 2020

BondAdviser Rating - September 2020

In September, BondAdviser released an updated rating report on GCI, affirming its "Recommended" rating.

15 Sep 2020

GCI Investment Update August 2020

In the near term, Gryphon’s expectation is for a modest fall in national average house prices as house values will be supported by historically low mortgage rates. Interestingly, in a research article dated 9 September, CBA revised their house price projections, forecasting smaller falls (than originally forecast) and a bounce in H2 2021.

02 Sep 2020

Morgans Research - September 2020

Morgans released a research paper focused on Listed Investment Trusts, with several references to GCI.

18 Aug 2020

GCI Investment Update July 2020

The most recent research released by the RBA in July 2020 provides an interesting insight into the potential performance for the borrowers impacted by COVID. The RBA research concludes that for a home loan borrower in Australia to default it requires both an inability to repay the loan, and (importantly) the home loan to also be in negative equity.

31 Jul 2020

Indepedent Investment Research Spotlight on GCI - July 2020

Independent Investment Research released a research paper, spotlighting GCI.

14 Jul 2020

GCI Investment Update June 2020

Reflecting on the 2019/2020 financial year, it seems like it was specifically designed to test the resilience of the GCI investment portfolio. Despite it being a tumultuous year, GCI was able to deliver on its objectives — sustainable, monthly income with low volatility of returns and stable underlying asset values (NTA).

18 Jun 2020

GCI Investment Update May 2020

Gryphon has been increasing our portfolio weighting to Prime RMBS and this continued in May as we participated in 2 Prime RMBS transactions taking advantage of the higher quality risk-adjusted returns on offer.

02 Jun 2020

Zenith Rating - June 2020

In June, Zenith released an updated rating report on GCI, upgrading its rating to "Recommended".

20 May 2020

GCI Investment Update April 2020

Gryphon believe our conservative portfolio positioning before the COVID crisis and our competitive advantage in data analysis in RMBS / ABS has placed us well to withstand the current dislocation in the financial markets.

15 May 2020

Gryphon Capital Income Trust Market Update

Ash Burtenshaw, CIO of Gryphon Capital Investments, discusses the impact of COVID-19 on GCI and its broader impact on the market.

(please ensure you read the disclaimer at the bottom of this page before viewing this video)

20 Apr 2020

GCI Investment Update March 2020

Predictable, reliable and sustainable monthly income is a core pillar of GCI and as such, we don’t envisage any disruption to the monthly distributions.

30 Mar 2020

GCI Market Update 27 March 2020

How will COVID-19 impact Australian RMBS? In this Market Update, we provide some reminders on the robust structure of RMBS bonds and the protections inherent for bond holders. We also explore how we think Australian mortgages will behave in the coming six months and why we are comfortable maintaining our income stream for unitholders in GCI.

18 Mar 2020

GCI Market Update 17 March 2020

In light of recent global market volatility, Gryphon Capital has released a market update to the ASX providing a summary of the current state of the fixed income markets.

11 Mar 2020

GCI Investment Update February 2020

As investors (not traders) our investment decisions are centred on the bond holder protections for each investment, the performance of each investment under our “stress testing” and the relative value of the investment opportunity.

14 Feb 2020

GCI Investment Update January 2020

It has been a relatively busy start to the new year with three securitized transactions launched and priced in January, including a $2.75 billion funding-only RMBS transaction by Westpac and two ABS issues from non-banks totaling $900 million.

13 Jan 2020

GCI Investment Update December 2019

The recent Entitlement and Shortfall Offers were settled on the 2nd and 9th of December respectively and Gryphon Capital was able to successfully invest approximately 80% of the new capital raised within days of the completion of the Offers.

16 Dec 2019

GCI Investment Update November 2019

During November, there were five new RMBS issues totalling $5.6 billion - Gryphon Capital’s Investment Committee elected to participate in two of the Prime RMBS new issue
transactions.

15 Nov 2019

GCI Investment Update October 2019

During October, there were five new RMBS issues, all from non-bank issuers totalling $4 billion, as well as four new ABS issues totalling circa $2.4 billion. Gryphon Capital’s Investment Committee elected to participate in two of the RMBS new issue transactions and one of the ABS transactions.

15 Oct 2019

GCI Investment Update September 2019

Gryphon Capital indicated in the recent capital raising that it may take up to three months to fully invest the additional capital raised. However, principally due to our forward planning and ability to source eligible investments, we have now effectively fully invested the proceeds in investments which satisfy the return and risk characteristics outlined in the PDS.

20 Sep 2019

GCI Investment Update August 2019

The recent Entitlement and Shortfall Offer and subsequent Placement were completed during August. Gryphon Capital was delighted with the overwhelmingly positive response received to the capital raise.

22 Aug 2019

Lonsec Rating - August 2020

In August, Lonsec released its first rating report on GCI, rating the trust as "Investment Grade".

20 Aug 2019

GCI Investment Update July 2019

During the month, a rating agency Standard & Poor’s (S&P) released a report entitled “Can Australian RMBS Ratings Withstand a Slowing Economy and Lower Property Prices?” and concluded that Australian RMBS ratings are largely resilient. As Gryphon has been communicating to our investors, debt serviceability is driven by mortgage rates and employment (not house prices).

11 Jul 2019

GCI Investment Update June 2019

The existing GCI Entitlement Offer and Shortfall Offer (to raise up to $108.03 million) opened on 4 July 2019 and due to very strong support shown by new investors the Shortfall Offer was closed early on 8 July 2019.

02 Jul 2019

GCI for Income

At IPO Gryphon Capital Income Trust the stated investment objectives were:
- Sustainable monthly cash income
- Highest Risk Adjusted Returns
- Capital Preservation

We’re proud to say that since IPO we have delivered everything we said we would without exception. Meaning GCI has achieved more yield for less risk than IPO targets.

02 Jul 2019

GCI Risk vs Return

At GCI our measure of ‘risk’ is the volatility of assets; with term deposits with low volatility compared to growth assets or higher risk assets with higher volatility such as equities...

02 Jul 2019

GCI for Capital Preservation

When investing for income, capital preservation is paramount and is our central pillar.
No investor in Australian RMBS has ever lost capital when held to maturity.

02 Jul 2019

NAB Interviews Gryphon’s CIO

Ash Burtenshaw, the Chief Investment Officer of Gryphon Capital Investments, provides Mark Todd from NAB - one of the Joint Lead Managers in the Entitlement Offer for the Gryphon Capital Income Trust (GCI) – an update on GCI and they discuss the upcoming Entitlement Offer.

01 Jul 2019

A Defensive Income Alternative

Where does GCI sit within the income alternatives?

01 Jul 2019

RMBS and House Prices

What drives the performance of RMBS? Do house prices matter?

26 Jun 2019

BondAdviser Rating Report - June 2019

In June, BondAdviser released a rating report discussing investment in the GCI Entitlement and Shortfall Offer, concluding with a "Subscribe" rating.

26 Jun 2019

Morgans Research - June 2019

Morgans released a research paper discussing the GCI Entitlement Offer.

19 Jun 2019

GCI Investment Update May 2019

During May, we witnessed quite a busy primary new issue market, with five public RMBS totalling almost A$5.6 billion. Due to a combination of credit analysis, relative value and GCI portfolio optimisation considerations the Gryphon Capital Investment Committee elected to participate in only one of these RMBS transactions.

23 May 2019

Zenith Rating - May 2019

In May, Zenith release its first rating report on GCI, rating the trust as "Approved".

20 May 2019

GCI Investment Update April 2019

The IMF concluded in its recent stress tests on the major banks that house prices are important for the “wealth effect” and government coffers, but have only a second order impact on a borrower’s capacity to pay their mortgage (arrears). The most important drivers for arrears performance are unemployment and home loan interest rates.

15 Apr 2019

GCI Investment Update March 2019

In early April the A$2 billion Australian Business Securitisation Fund Act (“ABSF”) was passed by the Federal Parliament, which was established to invest in securitisations backed by small and medium enterprise (“SME”) loans made by non-major banks and non-banks. The Government’s objective is to provide competitive financing to smaller banks who can then in turn increase the availability of finance to the SME sector.

09 Apr 2019

Gryphon Capital Investments featured on CommSec Executive Series

Ash Burtenshaw, CIO of Gryphon Capital Investments discusses RMBS and house prices on CommSec Executive Series

15 Mar 2019

GCI Investment Update February 2019

It was quite a busy month in terms of trading turnover as the team had identified a number of very attractive opportunities. To fund these opportunities, we chose to divest a number of holdings which had outperformed our price expectations, resulting in a portfolio shift towards a higher blended credit rating profile for little or no loss in yield.

06 Mar 2019

Apollo RMBS in the spotlight - "Suncorp mortgage bond failure" - cause for concern?

An article published in The Australian on 5 March 2019 generated some questions from clients of Gryphon Capital Investments and we wanted to provide some background and outline some key facts.

09 Jan 2019

Meet the Manager – Gryphon Capital Investments

Mark Todd from NAB, one of the Joint Lead Managers in the IPO of the Gryphon Capital Income Trust introduces Ash Burtenshaw, Chief Investment Officer of Gryphon Capital Investments. Ash discusses the performance of the Gryphon Capital Income Trust.

05 Oct 2018

Gryphon: Adding portfolio diversification to your income

The Gryphon Capital Income Trust allows retail investors to access a fixed income asset class that generally has only been available to institutional investors. These listings allow retail investors to diversify beyond traditional income assets while maintaining a higher yield.

04 Jul 2018

Morgans article – Diversification

Morgans one of the Joint Lead Managers in the recent IPO of the Gryphon Capital Income Trust explains the benefits of portfolio diversification.

27 May 2018

Media Release - Gryphon Capital Income Trust lists on ASX

Gryphon Capital Income Trust raises $175.3 million and successfully lists on the ASX.

13 Apr 2018

Media Release - Minimum Funds Raised

Gryphon Capital Income Trust Offer Minimum Funds Raised.

12 Apr 2018

Gryphon Capital Income Trust IPO : Where is the risk in seeking income?

Steven Fleming, Partner at Gryphon Capital Investments, explains to Informed Investor the benefits of secured debt.

Gryphon Capital - What are some of the benefits of secured debt? from Informed Investor on Vimeo.

11 Apr 2018

A message for SMSF investors

Self-Managed Super Funds (SMSFs) typically invest in a rather narrow range of assets: equities, fixed income, property, private equity or infrastructure, and cash, but these assets are increasingly correlated under the label of ‘risk-on assets’, reducing the benefits of diversification.

09 Apr 2018

Industry Moves Q&A with Gryphon co-founder and CEO Steven Fleming

“Our performance speaks for itself”: Q&A with Gryphon Capital Investments co-founder and CEO Steven Fleming.

05 Apr 2018

Morgans Article highlighting the benefits of diversification

Morgans one of the Joint Lead Managers in the upcoming IPO of the Gryphon Capital Income Trust explains the importance and benefit of portfolio diversification.

26 Mar 2018

Protecting investors through ‘skin in the game’

Despite the complex name, securitisation is a simple concept. Securitisation is taking an illiquid pool of assets and converting them to liquid securities. Securitisation got a bad rap in the wake of the GFC, but in Australia, there are important differences to the “sub-prime” market in the USA. This video explains the basics of this widely misunderstood asset class.

22 Mar 2018

The securitisation process explained

22 Mar 2018

Media Release - IPO launch

Gryphon Capital Investments Launches IPO for Gryphon Capital Income Trust, Raising $350 Million

21 Mar 2018

Gryphon knocks on doors ahead of $350m float

An article from The Australian Financial Review.

02 Feb 2018

Can Australian homeowners handle higher rates?

The average variable home loan rate in Australia has fallen from 8.3% to 5.1% in the past ten years, enabling households to borrow more and drive house prices higher. Despite higher levels of household debt, Australians’ level of mortgage stress is quite low. But what if interest rates go up?

04 Dec 2017

New fund float hopes for a happy new year

An article from The Australian Financial Review.

27 Nov 2017

Gryphon announces the appointment of Seed Partnerships for upcoming IPO

Gryphon Capital Investments is pleased to announce that in preparation for the upcoming IPO of Gryphon Capital Income Trust, Seed Partnerships have been appointed to act as Corporate Advisor.