• 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

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

Monthly Distributions (Annualised)

Sector Allocations¹

¹ As at 31 August 2020. Excludes Manager Loan.

Rating Breakdown¹

¹ As at 31 August 2020. Excludes Manager Loan.

Portfolio Underlying Residential Mortgage Loan Statistics²

² As at 31 August 2020. 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.

2019/20 Annual Tax Statements

The GCI Annual Tax Statements (“ATS”) for the 2019/20 financial year were distributed to unitholders on 6 August 2020.

Taking feedback from investors re the timeliness of the ATS distributions, the Investment Manager and the Responsible Entity, with the co-ordination of the Trust’s administrators, the Trust’s registry and PwC (the Trust’s auditors and tax advisers), set themselves a target to bring forward the completion and delivery of GCI’s ATS. This concerted effort has resulted in unitholders this year receiving their ATS almost 4 weeks earlier than in 2019.

Tax Guide 2020

Distributions

GCI makes cash distributions on a monthly basis and these distributions make up just one component of a unitholder's attributable tax. GCI's tax year-end is 30 June at which time the final components of tax attribution are determined and disclosed in the ATS. Unitholders should refer to their ATS for managing their tax affairs and should not rely solely on the cash distribution information presented below.

*Indicative only.

Periodic Statement 30 June 2019

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$2.1 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.