Gryphon Capital Income Trust
About this Fund
|FUND MANAGER||Gryphon Capital Investments|
|ASSET CLASS||LISTED INVESTMENT COMPANY|
|INVESTMENT STYLE||The Trust invests in a portfolio of Australian debt securities including residential mortgage backed securities (RMBS) and asset backed securities (ABS).|
|INVESTMENT PROFILE||The Trust's seeks to provide monthly cash income and capital preservation at a portfolio level.|
|CURRENCY MANAGEMENT||Active management|
|BENCHMARK||RBA Cash Rate plus 3.50% per annum net of fees|
|FUND SIZE||RBA Cash Rate plus 3.50% per annum net of fees|
|NO. OF HOLDINGS|
|FEES||0.72% p.a. of NTA of the Trust|
Benefits of investing in the Gryphon Capital Income Trust
Key benefits of investing in the Trust include:
About the Trust
The Trust seeks to provide Unitholders with monthly income and low risk of capital loss by investing in a portfolio of Australian debt securities including residential mortgage backed securities (RMBS) and asset backed securities (ABS). Since listing on the ASX, the Trust has met or exceeded all targets and has delivered its investors regular monthly cash income above the Trust's Target Return2 and a stable Net Tangible Asset backing (NTA). The Trust provides investors with a means of diversifying their income investments to a defensive fixed income asset class which has displayed little correlation to global equity market's volatility.
GCI's investment style is a long-only, deep-credit, research-driven, macro-aware approach using top-down and bottom-up techniques to build portfolios of what it considers to be the best relative-value securities consistent with its client's individual investment parameters.
GCI's investment strategies do not rely on timing' the market. Therefore, when making investment decisions, GCI's investment horizon and that of the Trust assumes the investment will be held until maturity, thus making capital preservation paramount especially through periods of economic turbulence. This philosophy is consistent with GCI's cognitive bias for long only investment strategies which are underpinned by its thorough and timely risk management systems. That said, GCI may still sell the Trust's investments before maturity where it believes it can reinvest capital more effectively elsewhere.
GCI believes the safest passage to long term success comes from the benefits of being a specialist investment manager. GCI's processes require it to establish the charter for each investment strategy in consultation with its clients and then not deviate from the strategy making sure there are no surprises and performance directly mirrors their client's objectives.
The Manager aims to deliver superior investment returns investing in Residential Mortgage Backed Securities (RMBS) and Asset Backed Securities (ABS). The investment process can be broken down into 4 key pillars:
How we invest your money
The Trust invests in a diversified portfolio of RMBS and ABS and other Authorised Investments. Once the Manager Loan is repaid the only investments in the Trust will be in RMBS and ABS.
Unlike other more common fixed income investments such as government bonds, the Trust invests in RMBS and ABS. Before making an investment the Manager will often negotiate with an Originator to ensure that the terms of the bond issue meets its robust due diligence standards. This is one of the major reasons why Retail Investors have difficulty accessing the RMBS and ABS markets. The Manager anticipates it will take two-to-three months to deploy funds raised under the Offer. To ensure the Trust will earn income in the period the funds raised under the Offer are being deployed, immediately following the allotment of New Units, the Manager will invest the Offer proceeds in more readily available RMBS and ABS in order to ensure the Trust is earning income on the new funds deployed almost immediately. The Manager will then begin to transition those investments into higher income generating Authorised Investments as opportunities arise.
(Authorised Investment: Mandate Range / Indicative portfolio)
The Trust investments may consist of the following:
The Investment Guidelines require the Manager to prudently limit exposures to any individual asset class, issuers and transactions. To support this, the Manager has adopted the following investment restrictions for the Trust:
Subject to the hedging guidelines, a maximum of 20% of the Portfolio may be invested in assets denominated in foreign currencies.