13 April 2018, Brisbane: Following the first week of the Gryphon Capital Income Trust (GCI or Fund) IPO roadshow, the broker bidding book exceeded the $100m minimum with strong demand continuing to build.
The Fund is seeking to raise up to a maximum of $350 million to deliver a stable and predictable monthly income by investing in a diversified portfolio of secured fixed income bonds. The Target Yield is the RBA Cash Rate plus 3.50%, which is presently equivalent to a 5.00% per annum yield. The general offer closes on the 2nd of May 2018.
Ashley Burtenshaw, co-founder and Chief Investment Officer of GCI, said “We are pleased with the support received from investors to date confirming that the Fund fills a gap in the market for a heightened return to cash without placing excessive capital at risk as compared to alternatives”.
GCI provides a unique opportunity for investors to access a portfolio of Residential Mortgage Backed Securities and Asset Backed Securities in an ASX listed vehicle managed by a specialist fixed income asset manager that manages $1.7bn on behalf of institutional investors.
Investors have welcomed this alternative fixed income asset class to diversify their portfolios with a secured monthly income stream. Residential Mortgage Backed Securities and Asset Backed Securities have a number of important structural protections that mitigate the risk of bondholders taking a principal loss. These credit enhancements include borrower’s equity, lenders mortgage insurance, originators excess interest and originators first loss.
Every proposed Residential Mortgage Backed Securities investment is stress tested to withstand the APRA stress scenarios that are used by Lenders Mortgage Insurers in calculating Probable Maximum Loss which corresponds to a 1 in 200 year event, prior to consideration for the portfolio.
Joint Arrangers and Lead Managers to the transaction Morgans and NAB, are pleased that investors have acknowledged the value proposition of further diversification to their existing income streams with the Gryphon Capital Income Trust.
The offer is being made under a product disclosure statement lodged with ASIC on 6 March 2018 (PDS) and is available on the Fund’s website www.gcapinvest.com/GCI. Applications under the general offer, scheduled to close 2 May 2018, can be made by completing the application form attached to the PDS or online through the application form accompanying the electronic PDS. Applicants under the broker firm offer should contact their broker for application details. Applicants should consider the PDS before deciding whether to invest in the Fund or continue to hold units in the Fund.
For further information please contact:
Kyahn Williamson or Verity Barritt
T: 03 9866 4722
Gryphon Capital Investments Pty Limited (“GCIPL”) (AFSL 454552) is an independent asset management firm, specialising in fixed income strategies, founded in 2014 by Steven Fleming, Ashley Burtenshaw and Henry Cooke. GCIPL currently manages over A$1.7 billion in segregated mandates from its offices in Brisbane and London, mostly in securitised high grade assets.
GCIPL is a deep-credit, research-driven, low-volatility manager aiming to deliver strong and stable returns to our clients not constrained by conventional benchmarks.