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Gryphon Capital Income Trust


Latest Unit Price (ASX: GCI)
$2.04

As at 06/12/2019 06.39 PM

Latest NTA Per Unit
$2.01

As at 05/12/19


GCI Target Return
RBA Cash Rate + 3.50% net of fees
(currently 4.25% pa)


The investment objective of GCI is to generate attractive risk adjusted returns principally through monthly income distributions through investments in a defensive asset class with a track record of low capital price volatility whilst preserving capital.

GCI 3 Key Deliverables

Gryphon Capital Income Trust (GCI) has 3 key deliverables in response to ongoing investor demand; sustainable and predictable income, whilst delivering highest risk adjusted returns, ensuring capital preservation is paramount.

Since listing back in May 2018 GCI has been achieving more yield for less risk than IPO targets.

GCI Deliverables Explained

1. GCI for Income

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2. GCI Risk v Return

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3. GCI for Capital Preservation

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In the following video, Ashley Burtenshaw, Partner of Gryphon Capital Investments, introduces Gryphon Capital Income Trust (GCI) and outlines its 3 strategic objectives; sustainable monthly cash income generating highest risk adjusted return whilst ensuring capital preservation is paramount.


1. RMBS and House Prices

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2. A Defensive Income Alternative

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  • Specialist Investment Manager with a proven track record of investment outperformance
  • Target income return of RBA Cash + 3.50% (net of fees)
  • Monthly distributions
  • Key objective of the Fund being capital preservation
  • Portfolio diversification — Australian ABS market is a large but specialist component of Australian Fixed Income

31 October 2019 1 Mth 3 Mth 6 Mth 1 Yr Incept (Ann) 1
Net Return (%) 0.41 1.20 2.83 5.68 5.09
RBA Cash Rate (%) 0.06 0.23 0.55 1.30 1.37
Net Excess Return (%) 0.35 0.96 2.27 4.32 3.67
Distribution (%) 0.38 1.15 2.45 5.12 4.66
Distribution (c/unit) 0.76 2.29 4.87 10.04 9.15

1 Inception date - 21 May 2018
Note: Past performance is not a reliable indicator of future performance.


Monthly Distributions (Annualised)


GCI Sector Allocations1

1 As at 31 October 2019. Excludes Manager Loan.

GCI Rating Breakdown1

1 As at 31 October 2019. Excludes Manager Loan.


GCI Portfolio Underlying Residential Mortgage Loan Statistics2

Total Prime Non-conforming3
No. of Underlying Loans 100,308 94,105 6,203
Weighted Average Underlying Loan Balance $457,082 $433,268 $629,319
Weighted Average LVR 65% 64% 68%
Weighted Average Seasoning 31 months 32 months 26 months
Weighted Average Interest Rate 4.22% 4.04% 5.52%
Owner Occupied 66% 66% 69%
Interest Only 26% 26% 23%
90+ Days in Arrears as % of Loans 0.35% 0.23% 1.16%
% Loans > $1.5m Balance 0.85% 0.49% 3.43%

2 As at 31 October 2019. Please note that although the values in this Investment Report are accurate portfolio statistics, the return and performance of actual credit instruments invested in are assessed individually.
3 Non-conforming loans are residential mortgage loans that would not typically qualify for a loan from a traditional prime lender and are generally not eligible to be covered by LMI. Borrowers may not qualify due to past credit events, non-standard income (self employed) or large loan size.


Distributions

GCI makes distributions to unitholders on a monthly basis. GCI's tax year-end is 30 June at which time the final tax components of the distribution are determined. The total annual distribution is advised in the Annual Tax Statement, issued to unitholders after the end of the financial year-end.

Distribution -
Month Ending:
Announced Ex Date Record Date Distribution Date Cash Distribution Per Unit Australian Sourced
Interest Income
31-Jul-18 24-Jul-18 30-Jul-18 31-Jul-18 8-Aug-18 $0.0048 100%
31-Aug-18 24-Aug-18 30-Aug-18 31-Aug-18 10-Sep-18 $0.0062 100%
30-Sep-18 23-Sep-18 27-Sep-18 28-Sep-18 9-Oct-18 $0.0074 100%
31-Oct-18 24-Oct-18 30-Oct-18 31-Aug-18 8-Nov-18 $0.0088 100%
30-Nov-18 23-Nov-18 29-Nov-18 30-Nov-18 10-Dec-18 $0.0086 100%
31-Dec-18 19-Dec-18 28-Dec-18 31-Dec-18 9-Jan-19 $0.0088 100%
31-Jan-19 23-Jan-19 30-Jan-19 31-Jan-19 8-Feb-19 $0.0088 100%
28-Feb-19 21-Feb-19 27-Feb-19 28-Feb-19 8-Mar-19 $0.0080 100%
31-Mar-19 21-Mar-19 28-Mar-19 29-Mar-19 8-Apr-19 $0.0090 100%
30-Apr-19 17-Apr-19 29-Apr-19 30-Apr-19 8-May-19 $0.0085 100%
31-May-19 24-May-19 30-May-19 31-May-19 11-Jun-19 $0.0088 100%
30-Jun-19 21-Jun-19 27-Jun-19 28-Jun-19 8-Jul-19 $0.0086 100%
31-Jul-19 24-Jul-19 30-Jul-19 31-Jul-19 8-Aug-19 $0.0084 100% *
31-Aug-19 23-Aug-19 29-Aug-19 30-Aug-19 9-Sep-19 $0.0077 100% *
30-Sep-19 23-Sep-19 27-Sep-19 30-Sep-19 9-Oct-19 $0.0076 100% *
31-Oct-19 24-Oct-19 30-Oct-19 31-Oct-19 8-Nov-19 $0.0076 100% *
30-Nov-19 22-Nov-19 28-Nov-19 29-Nov-19 9-Dec-19 $0.0070 100% *

*Indicative only.

Components of Distribution - Financial Period

The following information is provided to assist investors in managing their tax affairs relating to their investment in GCI.

Distribution - Period Ending: Cash Distribution per Unit* Attribution Amount per Unit* Total Distribution per Unit* Australian Sourced Interest Income
30-Jun-18 $0.0046 $0.0009 $0.0055 100%

*Applicable for units held for the full financial period. Where this is not the case, investors should refer to their Annual Tax Statement for information specific to their circumstances.

Periodic Statement 30 June 2018


The Trust’s Investment Objective is to provide monthly cash income and capital preservation at a portfolio level by investing in a portfolio of fixed income securities consisting of RMBS and ABS.

The Manager seeks to deliver the Target Return while seeking to preserve the Trust’s capital. The Manager has
developed a proprietary risk management framework which forms a fundamental part of its investment process. This investment process has been formed having regard to the Manager’s investment philosophy which gives first priority to capital preservation before assessing the appropriate income return.

The Trust’s Target Return is RBA Cash Rate plus 3.50% per annum net of fees through the economic cycle.

The total return of the Trust may rise or fall based on, amongst other things, performance in the underlying Trust investments and movements in the RBA Cash Rate. Investors should read Section 7 of the PDS which sets out some of the key risks of an investment in the Trust. Investors should be aware that because the Trust is listed on ASX, the value of their holding on ASX may be greater or less than the value of the underlying portfolio of assets in the Trust and the investment performance of their units different from that of the Trust’s.

The Target Return is not a forecast and is not guaranteed.


The Responsible Entity has appointed Gryphon Capital Investments Pty Ltd ACN 167 850 535 AFSL 454552 to be the manager of the Portfolio under an Investment Management Agreement.

Gryphon Capital Investment Pty Ltd (“Gryphon”) is a specialist fixed income manager with significant experience in the Australian and international fixed income markets. Gryphon Manages individual segregated accounts on behalf of institutional investors, principally Insurance and Superannuation accounts, and a ASX listed Trust, Gryphon Capital Income Trust (ASX :GCI) on behalf of wholesale and retail investors seeking opportunities in fixed income credit markets including RMBS and ABS. Gryphon currently manages funds in excess of A$2.0 billion.


One Managed Investment Funds Limited is the issuer of Units under the PDS and is the responsible entity and custodian of the Trust. The Responsible Entity is responsible for the overall corporate governance of the Trust. The Responsible Entity will manage the Trust in accordance with its duties to Unitholders. The Responsible Entity is also subject to numerous duties under the Corporations Act, including duties to act honestly, exercise care and diligence and act in the best interests of Unitholders.


The Trust invests in Residential Mortgage Backed Securities and Asset Backed Securities which are created through the process of securitisation. Learn about fixed income and the role securitisation plays in funding the economy.


One Managed Investment Funds Limited (ABN 47 117 400 987) (AFSL 297042) (OMIFL) is the responsible entity of the Gryphon Capital Income Trust (ARSN 623 308 850 (“Fund”). Information contained in this website was prepared by Gryphon Capital Investments Pty Ltd (ACN 167 850 535) (GCI). While neither OMIFL nor GCI has any reason to believe the information is inaccurate, the truth or accuracy of the information cannot be warranted or guaranteed. Before making any decision regarding the Fund, investors and potential investors should consider the Product Disclosure Statement (PDS) and other continuous disclosures available on the Australian Securities Exchange ("ASX") website (Disclosure Material). The Disclosure Material contains important information about investing in the Fund and it is important investors obtain and read the Disclosure Material before making a decision about whether to acquire, continue to hold or dispose of units in the Fund. This website contains general information only and is not intended to be financial product advice. It does not take into account any person’s (or class of persons’) investment objectives, financial situation or particular needs, and should not be used as the basis for making investment, financial or other decisions.  Investors should also consult a licensed financial adviser before making an investment decision in relation to the Fund. This website may contain forward-looking statements based on current expectations, estimates, and projections about the Fund’s business and the industry in which the Fund invests.  Readers are cautioned not to place undue reliance on these forward-looking statements. Neither OMIFL nor GCI undertakes any obligation to revise any such forward-looking statements to reflect events and circumstances after the date of this publication.  Past performance is not indicative of future performance. Neither OMIFL or GCI nor any other person associated with the Fund guarantees or warrants the future performance of the Fund, the return on an investment in the Fund, the repayment of capital or the payment of distributions from the Fund. To the extent permitted by law, no liability is accepted by OMIFL, GCI or their respective directors for any loss or damage as a result of any reliance on this information.